Form NRBI to Strengthen Rural Banks, Abandon IPO Move: Kerala Gramin Bank Employees Organise Seminar to Celebrate Golden Jubilee of RRBs

(The celebration of Golden Jubilee of RRBs organised jointly by Kerala Gramin Bank Employees' Union, Kerala Gramin Bank Officers' Union, and Kerala Gramin Bank Retirees' Forum.)

Focus on Rural Economy

Delivering the keynote address on the topic “Rural Economy – Introspection and Future”, Dr R Ramakumar, Member, Kerala State Planning Board, spoke about the origin and critical role of RRBs in India’s development. He highlighted that rural banks played a historic role during the Green Revolution and continued to support the rural economy when commercial banks began withdrawing from unorganised sectors due to the New Economic Policies introduced in the 1990s.

(Dr. R Ramakumar delivering his lecture.)

“Regional Rural Banks are now a network comparable with public sector banks in terms of branch presence and business volume,” Dr Ramakumar stated. “In this context, the formation of the NRBI is essential to strengthen the rural banking system further.”

(A packed hall of audience attending the seminar : “Rural Economy – Introspection and Future”)

He warned that any move by the government to sell shares of RRBs for profit-making purposes would face stiff resistance from employees. “Such a decision could destroy an institution that forms the backbone of rural livelihoods,” he added.

(N Meena presided over the function.)

Sustaining the Identity of RRBs

C Rajeevan, All India President of AIRRBEA, emphasised the responsibility of RRB employees to maintain the foundational values of rural banks as the system completes 50 years. He referred to amendments made to the RRB Act that allow for up to 49% private capital infusion but stated that these changes have not been implemented due to widespread opposition and practical considerations.

(AIRRBEA all India President C Rajeevan addressing the function.)

“RRBs are deeply embedded in the rural-agrarian economy. Disrupting this setup would be unwise,” said Rajeevan. “AIRRBEA, the majority union, has been actively lobbying against the IPO move and for the creation of NRBI, garnering support from MPs across political parties.”

He noted that delegations had met several parliamentarians to build consensus on the need to preserve the character of Gramin Banks and to resist commercialisation of rural banking.

Resolutions and Participation

The seminar passed a resolution strongly opposing the IPO of RRBs and reiterated the long-pending demand for the formation of a dedicated National Rural Bank of India. The participants agreed that forming such an institution would help consolidate the operations of RRBs and safeguard their identity.

The function was presided over by N Meena. Other speakers included N Suresh, Mayank Vaidya, K T Babu, and Jerin K John. Rajesh P delivered the vote of thanks at the conclusion of  the event.

Call for Policy Reforms

The seminar concluded with a call to policymakers to avoid any steps that may undermine the original objectives of RRBs. It reiterated that RRBs were set up with a specific mandate to serve the rural poor and small farmers, and any dilution in this focus could negatively impact rural development.

The golden jubilee seminar served as a platform to voice collective concerns from across the banking workforce and retiree community, urging the government to prioritise long-term rural welfare over short-term commercial interests.