- 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
Amalgamation of RRBs: Five States Actively Pursuing One State One RRB Process
Bihar, Odisha, Karnataka, Andhra Pradesh, and Rajasthan are expediting the One State One RRB process. State governments hold a 15% stake, and functioning of the amalgamated RRBs is set to begin in January 2025, says AIRRBEA Secretary General.
Author: Saurav Kumar
Published: December 26, 2024
The One State - One RRB initiative, a major consolidation move under the Regional Rural Banks (RRB) amalgamation process, is gathering pace across the country. Five states—Bihar, Odisha, Karnataka, Andhra Pradesh, and Rajasthan—have expedited the process, adhering to directives from the Department of Financial Services (DFS).
Under the RRB Act of 1976, state governments hold a 15% ownership stake in RRBs, granting them a critical role in these reforms.
Amalgamation Gaining Momentum
Reacting to the latest developments, AIRRBEA Secretary General Venkateshwar Reddy highlighted the progress made. Speaking to Kanal, he said, “The DFS order is gaining momentum, and five states have acted on it. RRBs in Bihar, Odisha, Karnataka, Andhra Pradesh, and Rajasthan are making the necessary moves for amalgamation. However, we expect more states to follow suit soon.”
Reddy further revealed that the DFS is actively seeking opinions and suggestions from sponsor banks and RRBs nationwide. He added, “From January 2025, the amalgamated RRBs will begin functioning, starting with Andhra Pradesh.”
The DFS introduced the ‘One State, One RRB’ amalgamation plan on November 4, 2024, aiming to consolidate RRBs.
Tentative Resistance to Amalgamation
Despite significant progress, the process has allegedly encountered resistance. Notably, Gujarat Regional Rural Bank Employees’ Union recently accused Saurashtra Gramin Bank’s Chairman of obstructing the RRB amalgamation process. The resistance underscores the complexity of implementing a nationwide consolidation policy while balancing stakeholder interests.
The One State One RRB policy marks a pivotal transformation for the RRBs, aiming to strengthen financial inclusion and streamline rural banking operations. However, resolving resistance and ensuring a smooth transition across all states remain critical challenges.