- 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
DFS Issues Stern Directive to RRBs Over Non-Compliance
The Department of Financial Services has warned RRBs against repeated non-compliance with government directives, citing it as a cause of indiscipline and grievances. It stressed uniform implementation to prevent further disruptions in the banking sector.
Author: Saurav Kumar
Published: March 5, 2025
The Department of Financial Services (DFS) under the Ministry of Finance has taken a serious note of Regional Rural Banks (RRBs) failing to implement government-mandated policies in a uniform and timely manner. Citing repeated violations, DFS has warned that such non-compliance has led to indiscipline, avoidable litigations, widespread grievances, and unrest amongst RRB employees.
In an official letter dated March 4, 2024 addressed to the Chairpersons of all RRBs, the DFS stated, “It has been observed that on several occasions in the past, various RRBs have failed to comply with such directions issued by the Government in letter and spirit, which leads to indiscipline, absence of uniformity in application of such directions across RRBs, avoidable litigations, widespread grievances and unrest amongst the RRB employees.”
The Ministry of Finance expressed concern over inconsistencies in policy implementation across different RRBs, which it believes have resulted in confusion and disruptions in the banking system.
Instructions to RRBs to Ensure Scrupulous Compliance
To address the issue, the DFS has instructed RRBs to adhere strictly to all guidelines, ensuring scrupulous compliance in a non-discretionary and uniform manner. Any ambiguity in interpreting these directions, it said, must be referred to DFS rather than being independently decided at the bank level.
The letter comes amid growing unrest among RRB employees over disparities, pending issues, unresolved demands and in the execution of government policies. With this stern warning, the Finance Ministry has signaled that further lapses could invite stronger regulatory action. The response from RRBs in the coming weeks will be closely monitored to gauge compliance with these directives.