Nationwide Strike On 23 February: Regional Rural Bank Employees Demand Formation of NRBI Among Other Service Benefits

Over one lakh employees, pensioners, and casual workers of Regional Rural Banks (RRBs) across the nation are set to participate in a nationwide strike on 23 February 2024. The strike shall hinder services to over 40 crore customers approximately across 22,000 Gramin bank branches all over India.

This decision follows a series of agitational programs over the past three months, spearheaded by the All India Regional Rural Bank Employees Association (AIRRBEA). The aim is to address long-standing grievances with the Department of Financial Services(DFS), Ministry of Finance, Government of India.

RRBs have been recognized for their pivotal role in implementing various government schemes particularly in remote rural regions. However, despite commendations from governmental and financial bodies for their remarkable performance, the sector faces significant challenges, particularly regarding staff shortage impacting rural customer services.

Conflicts with Sponsor Banks and Demand for NRBI

The key demand set forth by RRB employees is the formation of a National Rural Bank of India(NRBI) with state-level RRBs, relieving RRBs from the control of the existing sponsor banks. AIRRBEA highlights the deteriorative role of sponsor banks in RRB management. They argue that the insertion of sponsor banks has subordinated RRBs, contrary to their intended autonomy. “The sponsor banks are acting as masters cum competitors of RRBs. Additionally, they prioritise their own agenda over the needs of RRBs, resulting in inferior treatment of RRB staff and a lack of unique business models tailored to RRBs. Despite RRBs' substantial customer base and business growth, especially in rural agrarian regions, the influence of sponsor banks hinders our full potential. That is the reason behind the call for delinking RRBs from sponsor banks and the creation of NRBI for enhanced competency and service delivery to rural India”, Anto Gaulbert, President of Tamil Nadu Grama Bank Officers’ Association, told Kanal.

He also pointed out the lack of infrastructure and basic facilities for both employees and customers of TN Grama Bank. “As a result of the attitude of subordination from the sponsor banks, many rural branches are functioning without basic facilities like proper toilet facilities and air conditioning. The customers are also deprived of basic banking services like ATMs and CDMs”, Gaulbert added.

(The press release from AIRRBEA briefing the demands of the national strike.) 

Other demands of the national strike include immediate revision of promotion rules and adequate recruitment to address over 30,000 vacant positions, and the regularisation of daily wage/part-time/casual workers in line with the Supreme Court orders. The AIRRBEA also seeks amendments to service and leave rules, wage structure parity, inclusion in wage revision negotiations, and full implementation of pension parity, among other concerns. Staff shortage coupled with termination of casual workers lead to additional burden on employees including weekend work mandate and extra hours. 

Speaking to Kanal, an employee of Utkal Bank, an RRB based in Odisha, highlighted staff shortage as the major issue grappling the bank. “Many of the branches of Utkal bank function with one officer, one clerical employee and a sub-staff. In many banks the sub-staff is also not available. In such cases it is difficult for the bankers to avail leave, as the remaining person will have to manage the proceedings alone on that day. This poses a threat to security of the bank and the bankers alike. In addition to this is increased workload that comes along with staff shortage. Combining officers, clerical employees and sub staff, there are around 1200 vacancies in Utkal Gramin Bank alone”, the employee added. 

Kerala Gramin Bank Employees on 60 Hour Sit-In Protest

As part of the national agitation, Kerala Gramin Bank Employees Union and Kerala Gramin Bank Officers Union(both affiliated to AIRRBEA) have launched a 60 hour long day-night protest at the Kerala Gramin Bank headquarters in Malappuram. The sit-in protest commenced on 21 February, and will conclude with the national strike on 23 February. The employees demand resolution to the concerns regarding service terms in Kerala in addition to the demands of the national agitation.

(Sit-in protest at Kerala Gramin Bank headquarters in Malappuram.)

In the wake of the nationwide strike, representatives of AIRRBEA attended a conciliation meeting with representatives of NABARD and various sponsor bank managements on 22 February. Representative of DFS was absent from the meeting. AIRRBEA leadership informed that the call for strike continues as the meeting failed to yield desired results. AIRRBEA also warned the authorities of a two-day nationwide strike on 27 and 28 March 2024, in case of failure to address the concerns raised. Another conciliation meeting is scheduled for 6 March 2024. The fate of the agitation and its potential escalation rests upon the response of governmental and financial authorities to the concerns raised by the RRB employees.