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NABARD's Branding Reform: A Watershed Moment for RRBs
NABARD drops sponsor bank names from RRB logos, marking a key step toward RRBs’ independent identity and NRBI formation.
Author: Rural Banker
Published: July 31, 2025
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In May 2025, right after the amalgamation of 11 RRBs, I authored an article titled “How Sponsor Banks Control Is Strangling the Brand Identity of RRBs?” focusing on sponsor banks’ role as Master Cum Competitor. In that article, I mentioned how the sponsor bank’s name in a RRB’s logo has affected the brand image of that RRB. The sponsor bank has been using RRB's logo for its own branding. Sponsor bank’s name in a RRB's logo highlights the dependency of RRBs on the sponsor bank. Its name in the RRB's logo speaks of the subservience and hegemony it wants to assert on RRBs.
Moreover, the logo of an organisation speaks of its unique identity. Having the name of another organisation in its logo dilutes its identity and affects its brand image among its existing as well as prospective customers. People nowadays focus on brand and any dilution in the brand image directly affects their confidence in that organisation.
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Breaking Free from Sponsor Bank Hegemony
The latest notification of NABARD has acknowledged the need of strengthening the branding of RRBs by allowing the mention of ownership of government of India only in RRBs’ logo. It has omitted the name of sponsor bank in the logo. This positive step taken by NABARD is a watershed moment in the history of RRBs.
We are well aware that in this era of fierce competition among financial institutions, particularly banks, these institutions have been vying hard to get hold on a wide customer base so that they can mobilise business which in turn will increase their income and will help them strengthen their balance sheets. Apart from services, it's a logo that has been inducing a sense of belongingness among the customers to the organisation. This sense of belongingness makes a bank to strive hard to make endeavours to retain its customers. NABARD through its latest notification has acknowledged the need of ameliorating the RRBs branding.
A Step Toward NRBI Formation
This step by NABARD and DFS will definitely curtail the role of sponsor bank as master cum competitor. It will give RRBs an unique identity. My understanding says that all the leading unions should come forward to express their gratitude to GoI and NABARD for bringing about this watershed moment in RRBs as one of the leading trade unions, AIRRBEA, has been vociferous to highlight the sponsor bank's role as master cum competitor to its sponsored RRB.
Moreover, this moment should be seen as significant towards the formation of National Rural Bank of India (NRBI) with its unique identity. It will be possible only when RRBs will be freed from the shackles of sponsor banks. Let's cheer this watershed moment while celebrating the golden jubilee year of the formation of RRBs.
(Disclaimer: The views expressed in this article are those of the author.)
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