- Crisis In Indian Banking Leads to Work Pressure and Driving Employees To Despair, Commit Extreme Steps
- Toxic work culture on the rise in banks
- 5DaysBanking: Bankers Urgently Demand 2 Days Off Per Week
- Banks see over 15% growth in new credit card addition: RBI data
- Banks Transfer ₹37,176 Crore to RBI’s Depositor Education and Awareness Fund in Last 3 Years
- Calls for Bankers’ Safety Amplified After Video of SBI Branch Manager Attack Goes Viral
- Nainital Bank Faces Privatisation Move Amid Staff Protests
- Whistleblowers Expose Nexus Operating from Three Banks
- Preserving RRBs: AIRRBEA Defends Rural Banking Against AIBOC-AIBEA Merger Proposals
- Union Bank of India’s new directive for weekend work at Retail Loan Points (RLPs) has sparked outrage among bankers
AIRRBEA Urges Finance Minister to Include RRBs in National Portals for Business Growth
All India Regional Rural Bank Employees Association has urged Finance Minister Nirmala Sitharaman to include RRBs in key National Portals, citing business losses due to policy restrictions. The association demands urgent reforms to ensure RRBs compete fairly with commercial banks.
Author: Saurav Kumar
Published: March 10, 2025
The All India Regional Rural Bank Employees Association (AIRRBEA) has urged Finance Minister Nirmala Sitharaman to take immediate steps to include RRBs in key National Portals, warning that their exclusion is causing major business losses and preventing them from competing on equal footing with commercial banks.
In a letter dated March 8, 2025, AIRRBEA highlighted that RRBs are unable to secure large deposits and offer crucial banking services due to restrictions under existing regulations, such as the Nidhi Rules, 2014, and National E-Governance Service Limited (NeSL) framework. The association emphasized that corrective measures are essential to protect RRB’s business interests and ensure fair competition in the banking sector.
RRBs Are Losing Deposits and Revenue Due to Policy Exclusion
AIRRBEA expressed serious concern that RRBs are being denied access to vital financial platforms, leading to miss revenue opportunities.
The letter stated, “RRBs are also deprived from inclusion in different National Portals for extending the services like PPF accounts, EPF pension accounts, Nidhi Accounts etc. Under the Nidhi Rules 2014, the Nidhi companies can invest in Term Deposits in any Scheduled Commercial Bank, other than Cooperative Bank and RRBs. Tamilnadu Grama Bank is unable to tap any deposits from a large number of Nidhi companies operating in the State due to this restriction. Hence, the Rule 14 of Nidhi Rules, 2014 should be suitably amended to include RRBs in the list, to have a level playing field.”
The association argued that such restrictions are preventing RRBs from achieving their full business potential, despite their significant contributions to rural banking and financial inclusion.
AIRRBEA’s Key Demands for Policy Inclusion
To ensure RRBs remain competitive, AIRRBEA has urged the Finance Minister to take immediate action on the following:
- Amend Rule 14 of the Nidhi Rules, 2014, to allow Nidhi companies to invest in RRB term deposits.
- Empanel RRBs under NeSL, enabling them to issue E-Bank Guarantees.
- Expand RRBs’ IT infrastructure, ensuring access to internet banking, mobile banking, and real-time payment systems.
- Ensure uninterrupted IFSC codes for all RRB branches, improving connectivity and financial transactions.
- Allow RRBs to offer PPF and EPF-linked accounts, removing unnecessary restrictions.
With RRBs continuing to face disadvantages due to policy gaps, AIRRBEA has called for immediate government intervention to ensure these institutions can fully participate in the financial ecosystem, preventing further loss of business and revenue.