AIRRBEA to Join National Strike on July 9 Opposing RRB Privatisation Through IPO Route

Originally slated for May 20, 2025, the strike has been moved to July 9 following coordination among national-level trade unions. The AIRRBEA’s strike notice has accordingly been updated in line with the revised date. The Association is protesting a recent directive issued by the Department of Financial Services (DFS), Ministry of Finance, on May 16, 2025 (F.No.7/4/2022-RRB), which proposes that RRBs raise capital through IPOs—an idea AIRRBEA has consistently opposed.

“This retrograde proposal is a gateway to privatisation of rural banks, which we have resisted for years,” AIRRBEA stated, reiterating that it will reinforce the united voice of trade unions against the IPO plan.

Image: AIRRBEA statement on participation in joint strike and opposing IPO of RRBs.

Demand for National Rural Bank of India (NRBI)In a significant departure from the current structure, AIRRBEA has demanded the formation of a National Rural Bank of India (NRBI) to serve as an apex body for all 28 state-level RRBs. Crucially, AIRRBEA is insisting that NRBI be entirely delinked from Sponsor Banks, whom they accuse of functioning both as “master and competitor” to RRBs.

RRBs Report Robust FY25 PerformanceHighlighting the critical role of RRBs in the rural financial system, AIRRBEA pointed to strong business figures:

• Total Business: ₹12.40 lakh crore
• Deposits: ₹7.5 lakh crore
• Advances: ₹5.90 lakh crore
• Net Profit: ₹7,148 crore
• Profit Reserves: Over ₹53,000 crore (up from ₹46,659 crore in FY24)
• Gross NPAs: Down to 5.3%, the lowest in a decade

Despite obstacles—including competitive pressures from Sponsor Banks—RRBs have demonstrated resilient financial performance, AIRRBEA stated, justifying their demand for independent governance.

5 Key RRB-Level Demands Raised by AIRRBEA

Alongside 17 national-level demands endorsed by the Joint Platform of Trade Unions, AIRRBEA has articulated five specific demands for RRB reform, which will be highlighted during the July 9 strike:

1. No Privatisation of RRBs – Immediate withdrawal of the IPO proposal.
2. Establish NRBI – As a central body for RRBs, independent of Sponsor Banks.
3. Urgent Recruitment Drive – Fill over 30,000 existing vacancies and induct an additional 15,000 over the next 3–4 years.
4. Regularisation – Regularisation of casual workers Following models already approved in e-APGVB and e-CGGB in line with Supreme Court directions.
5. Scrap NPS, Restore OPS – Complete rollback of the New Pension Scheme in favour of the Old Pension Scheme.

AIRRBEA’s decision to join the July 9 nationwide strike reflects rising discontent among rural bank employees and a growing resistance to policy moves perceived as privatisation. It also underscores a broader call for reforms rooted in public interest and rural empowerment.