AIRRBEA Stands Against Misinformation on 'One State One RRB', Reaffirms Commitment to Formation of National Rural Bank of India, Delinked from all Sponsor Banks

A misleading narrative pushed by the AIBEA and AIBOC has surfaced regarding the Government of India’s ongoing policy of 'One State One RRB' amalgamation, falsely scaring the staff that State level RRBs are being formed for privatization and  for Initial Public Offering (IPO) in the future.

AIRRBEA's Vision for RRBs  
The All India Regional Rural Bank Employees Association (AIRRBEA), the largest organization representing a lakh of staff associated with rural banking, stands firmly for the creation of the National Rural Bank of India (NRBI). This proposed institution aims to unify and strengthen rural banking across India to better serve the nation’s poor, farmers, laborers, and small business owners in 705 districts.  

Unfortunately, these organizations having failed in their covert attempts for Merger of RRBs in Sponsor Banks are now spreading such rumours. They have historically opposed the very foundation of RRBs and have always worked against RRBs and the RRB  staff. It must be remembered that RRBs were established on October 2, 1975, by the Government of India to ensure banking access in rural areas neglected by other financial institutions. Today, RRBs are on the cusp of completing 50 years of service, with over 22,000 branches, 42 crore customers, ₹11.5 lakh crore in business volume, and ₹47,000 crore in profitable reserves. This makes them the seventh-largest financial institution in the country, contributing immensely to the economic upliftment of rural India.  

Opposition to Misinformation on RRBs' Future  
Certain entities are attempting to mislead the government by consistently advocating for the merger of RRBs, which is nothing but winding up RRB system. Their agenda aligns with those who had earlier refused to provide banking services in rural areas. However, RRBs have proven their utility through exceptional performance in priority sector lending, social welfare schemes, and financial inclusion initiatives, well acknowledged by Unon Finance Ministry.  

The privatization threat looming over nationalized banks, which have lost ground in priority sector banking, has further highlighted the indispensable role of RRBs in serving the rural economy. In 2014-15, the Government of India passed legislation allowing a reduction of its stake in RRBs from 50% to 34%. But, AIRRBEA’s continuous opposition has prevented the implementation of this rule, effectively stopping IPOs even in already formed state level banks  like Kerala, Tamil Nadu, Punjab, Assam, Uttarakhand, Chattisgad, Jharkand and others. AIRRBEA will continue to oppose the IPOs after current amalgamations also.

AIRRBEA firmly believes that the One State One RRB policy is a welfare-driven initiative aimed at empowering rural banking services, can't be a step towards privatization.  

Ongoing Struggles for Employee Welfare  
AIRRBEA’s long-standing fight for the welfare of RRB employees continues unabated. Key unresolved issues include the notification of the HR Committee report for discussion, parity in promotion policies, parity in Leave rules, implementation of a 14% NPS contribution, regularization of daily wage workers, and the implementation of 2009 compassionate Appointment scheme etc. Despite several hurdles, AIRRBEA’s continued efforts have clinched historic wins, such as the recent implementation of bipartite wage revision at par, implementation of pension and computer increment policies as in banking industry.

The central leadership appeals to all RRB staff  to refute propaganda of misinformation spread by pessimist organisations. AIRRBEA reaffirms its commitment to the welfare of rural banking employees and the creation of NRBI, which aligns with the vision of empowering rural India.  

Opposition to IPOs in Rural Banks  
AIRRBEA strongly opposes any attempt to introduce private sector participation through IPOs in RRBs, particularly in economically fragile states like Bihar. The Association remains steadfast in its mission to protect RRBs as institutions serving the interests of rural customers.  

AIRRBEA urges all stakeholders to support the One State One RRB initiative, ensuring that RRBs remain a pillar of financial inclusion and economic development for rural India.  

[ The author is the Secretary General of All India Regional Rural Bank Employees Association (AIRRBEA).]