Authoritarian Rule in Regional Rural Banks? Alarming Rise in Regional Manager Misconduct

Kanal’s independent analysis of reported incidents suggests a recurring trend.

Eastern RRBs Under Spotlight in RM-Linked Controversies

The pattern is especially prominent in Eastern India. As per Kanal’s review of field-level incidents reported over the past year, Odisha Gramin Bank recorded the highest number of Regional Manager-related controversies (9), followed by Uttar Pradesh Gramin Bank (6), Bihar Gramin Bank (2), and Jharkhand Rajya Gramin Bank (1).        

Image: The number of controversial incidents led by Regional Managers in four RRBs.

These banks, most of which underwent amalgamation under the “One State One RRB” policy—are witnessing systemic managerial pressure at the regional level, particularly in zones that were formerly part of Utkal Grameen Bank, Baroda UP Bank, and Uttar Bihar Gramin Bank.

Image: Comparative analytical breakdown of RM related incidents. 

From Pleasing Management to Pressuring Staff

There are several factors contributing to the controversial conduct of Regional Managers across RRBs. 

An employee of Odisha Gramin Bank told Kanal, “One of the key reasons behind the problematic behaviour of many Regional Managers is their lack of branch-level experience. Having rarely worked as Branch Managers—or with minimal time in branch roles—they fail to grasp on-the-ground challenges. In an attempt to impress higher management, they often resort to scolding and undue pressure on staff.”

“Regional Managers operate within a managerial hierarchy that often functions with a ruthless approach, where RMs themselves become vulnerable targets. Over time, the accumulated pressure trickles down—and employees bear the brunt in the worst possible ways.”

According to an employee of Uttar Pradesh Gramin Bank, the ongoing controversies surrounding Regional Managers are closely tied to the bank’s sponsor, Bank of Baroda. He said, “Despite having highly capable Scale-IV officers within our own ranks, several regions continue to be overseen by Regional Managers deputed from Bank of Baroda. These RMs often impose excessive work pressure, aggressively push cross-selling targets, and resort to verbal abuse and even mental harassment.”

Insiders believe that such unchecked authority, especially when tied to job threats, misbehaviour and performance-linked punishment of contract or daily-wage staff, could lead to a wider breakdown in trust and operational morale across rural branches.

Mounting Stress, Union Pushback, and the Call for Reform

Just days ago, Regional Managers in Odisha Gramin Bank and Jharkhand Rajya Gramin Bank were also accused of abusive behaviour and dictatorial treatment towards subordinate staff. Unions across multiple states have raised flags about rising mental stress among employees due to such high-handedness, and in some cases, have announced formal protest calls.

The pattern of unchecked authority at the Regional Manager level has raised red flags over structural accountability in rural banking. Without timely intervention, the misuse of positional power and absence of grievance redressal mechanisms could damage employees morale and operational trust at the grassroots. Stakeholders such as unions demand intervention of the Finance Ministry, NABARD, and sponsor banks to take urgent corrective measures against misuse of power.