- 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
Gramin Banks: The Lifeline of Rural India Grapple with Persistent Disparities
Gramin Banks, vital for rural India, face persistent anomalies in benefits and allowances. Despite financial growth, RRBs struggle with staffing, digital onboarding, and operational disparities.
Author: Saurav Kumar
Published: April 30, 2024
Regional Rural Banks (RRBs), often considered the lifeline of rural India, are beset by a series of anomalies and discrepancies in the implementation of various benefits and allowances. These banks play a critical role in supporting rural economies, yet they continue to face challenges that often go unresolved, impacting both employees and customers.
A Myriad of Anomalies
A detailed chart submitted by the All India Regional Rural Bank Employees Association (AIRRBEA) to the Deputy Chief Labour Commissioner on April 16 outlines 16 significant anomalies affecting 40 RRBs. The list covers a range of issues, including:
1. Computer Increment: The additional increment from the 1993 National Industrial Tribunal settlement, which has not been uniformly implemented across RRBs, leading to disparities with Nationalised Commercial Banks (NCBs).
2. Transport Allowance: Irregularities in transport allowances, affecting employees who need to travel for work.
3. Sabbatical Leave for Women Employees/Officers: Unequal sabbatical leave policies for women in some RRBs.
4. Payment of Gratuity: Variances in gratuity payments, with some RRBs not complying with legal requirements.
5. Daily Wages for Casual Workers: Discrepancies in daily wage payments and adherence to Central Labour Commissioner (CLC) instructions.
6. Maternity Leave: Irregularities in maternity leave policies for women employees.
7. Special Pay to Workman Staff: Unequal special pay benefits for workman staff across RRBs.
8. Parity in Leave Benefits: Discrepancies in leave benefits among different RRBs.
9. Regularisation of Casual Workers: Issues with regularisation of daily wage and casual workers, with pending court cases.
10. Transfer Policy: Inequitable implementation of transfer policies, affecting housing rent allowances (HRA) and related benefits.
11. Number of Daily Wage/Casual Workers: Inconsistencies in the number of casual workers employed in different RRBs.
12. Year-wise Recruitment: Insufficient recruitment of staff as per industry norms.
13. Special Leave for Physically Handicapped/Orthopedically Challenged Employees: Uneven policies for special leave.
14. Conveyance Allowance for Workman Staff: Discrepancies in conveyance allowances.
15. Conveyance/Fuel Allowance for Officers: Variation in conveyance and fuel allowances for officers across RRBs.
16. Payment of Gratuity for 5-Year Service: Inconsistencies in gratuity payments for those with five years of service.
Lag Despite Leap
Despite showing remarkable financial growth, Gramin Banks continue to struggle with various issues, creating a sense of irony between success and persistent challenges.
An RRB employee from Assam Vikash Gramin Bank, speaking on condition of anonymity, told Kanal, “RRBs are set to achieve remarkable financial performance for the second consecutive fiscal year, with a projected profit of Rs. 6,000 crore in FY 2023-24, almost Rs. 1,026 crore more than the previous year. It's a significant leap, yet the banks still face numerous challenges, from staff shortages to allowance disparities and unfair transfer policies.”
Recent reports have highlighted staff shortages at Utkal Grameen Bank, Uttarbanga Kshetriya Gramin Bank, and Baroda UP Bank, affecting their daily operations. Additionally, many Gramin Banks have experienced delays in digital onboarding despite ongoing requests for improvements. However, even with these issues, Gramin Banks are expected to hit a total business mark of Rs. 11 trillion, demonstrating their resilience and capacity for growth.
Yet, the persistent struggles with staffing, digital infrastructure, and operational disparities underscore the need for a concerted effort to address these challenges and ensure that the success of Gramin Banks isn't overshadowed by the unresolved issues they continue to face.
The Need for Uniformity
The inconsistent implementation of the 12th Bipartite Settlement and other key policies has created significant disparities among RRB employees, affecting morale and operational efficiency.
A banker from Utkal Grameen Bank commented, “The Department of Financial Services and the Government of India need to act promptly to address these discrepancies. Consistency in the application of benefits and allowances is essential to ensure fair treatment and adequate support for RRB employees. If these disparities are not addressed, they could undermine the fundamental role that Gramin Banks play in rural India.”
The recent #Justice4GraminBankers movement on social media reflects a growing demand for equitable treatment and highlights the urgent need for reforms in the RRB sector. This call to action underscores the importance of addressing the existing inequities to preserve the effectiveness and integrity of Gramin Banks.