One State One RRB: NABARD Unveils SOP For Amalgamation

The National Bank for Agriculture and Rural Development (NABARD) has released a detailed Standard Operating Procedure (SOP) guiding the amalgamation of 11 Regional Rural Banks across 10 states and 1 union territory. With the One State One RRB policy taking effect on May 1, 2025, the designed SOP aims to offer a structured roadmap for governance, HR transition, tech integration, and branding, ensuring a disruption-free rollout.

It has been shared with transferee RRBs ( also called as anchor RRB), sponsor banks, and state-level committees.

Structure for Implementation

4.2 – 4.6: Committees and Cells for Monitoring
NABARD has set up a multi-tier implementation framework:

• National Level Project Monitoring Unit (NLPMU): Headed by NABARD’s Deputy MD with members from DFS and sponsor banks to resolve policy-level issues.
• State-Level Monitoring Committees (SLMCs): Tasked with preparing state-specific SOPs, data migration, and HR planning.
• Amalgamation Project Management Unit (APMU): Housed in anchor RRBs to coordinate state-level action and report progress.
• Steering Committee: Finalises harmonised policies and operational plans.
• Functional Committees: Department-specific teams responsible for drafting unified policies.
• Amalgamation Cell: Provides secretarial and coordination support for smooth execution.

These given directions ensure structural continuity before moving into compliance and legal transitions.

Image: Flow chart of monitoring bodies of amalgamation.

Governance Guidelines for Transferee RRBs

5.1 – 5.8: Leadership, Board, Shares

• Chairman Appointments: Preferably continue with anchor RRB chairman; fresh appointments only if needed.
• Sponsor Bank Deputation: Officials from transferor RRBs may stay temporarily for smooth transition.
• Board of Directors: Must be reconstituted under RRB Act with nominations from GoI, RBI, NABARD, state governments, and sponsor banks.
• Board Rules: No fresh gazette notification required.
• BoD of Transferor RRBs: Automatically dissolved on 30th April 2025.
• Share Transfer: If sponsor bank changes, shares are transferred at face value and new share certificates issued.

Regulatory Compliance

6 – 10: RBI, CGTMSE, e-Kuber Registrations

• RBI Schedule II Listing: Requires NABARD certification and Board documentation.
• Branch Licenses: Fresh licenses to be issued by RBI; old ones surrendered.
• Current Accounts: New accounts to be opened; old ones closed in sync with RBI’s DGBA.
• e-Kuber & CGTMSE: Transferee RRBs must re-register for digital payments and credit guarantee schemes.

Audit and Financial Integrity

11: Special Audit
Transferor RRBs must undergo special audits by April 30, 2025. Top 20 branches, HO, and fraud-prone branches to be audited. Results feed into a consolidated balance sheet for the new RRB.

With financial integrity addressed, the SOP turns its focus to personnel management — one of the most critical aspects of a smooth amalgamation.

HR Integration, Promotion, and Recruitment

12.1 – 12.9: Workforce Transition Framework

• Manpower Rationalisation: Fresh assessment post-amalgamation.
• Seniority Fixation: As per NABARD-GOI 2013 norms; SLMC to resolve disputes.
• Promotion Process: Considered initiated only after Board approval and formal circular—not mere vacancy approval.
• Recruitments: Ongoing processes to be kept in abeyance; joining delays beyond April 30 to be reviewed.
• Allowances & Benefits: Existing terms to continue post-amalgamation.
• Transfers: Posting powers extend across the new RRB area; new transfer policy to follow DFS guidelines.
• Service Regulations: Must be re-notified under new RRB name—no fresh approval needed.
• Employee Loans: Fixed tenure loans continue unchanged; running limits realigned to prevailing interest rates.
• Pension & Disciplinary Cases: To be consolidated by transferee RRB with transferor data.

Image: Roadmap for promotion process and recruitments in amalgamated RRBs 

Premises, Stationery, and Branding

13 – 14: Physical Assets and Identity

• Regional Offices: Rationalisation encouraged.
• Stationery: Continue using old stock with new seal; digitise forms.
• Branding: NABARD to provide common logos, signage, and visual identity guidelines to be adopted by all transferee RRBs.

Head Office Arrangements

15: Interim and Permanent HO Setup
Where new HO structures are yet to be established (e.g., in state capitals), old HO premises may be used temporarily. State governments may be approached for land or space support.

Technology Integration and Digital Transition

16.1 – 16.5: Seamless Tech Shift

• Settlement Accounts: Sponsor banks must ensure digital services (NEFT, UPI, IMPS, etc.) continue uninterrupted until full tech migration.
• PFMS Compliance: Follow protocols to avoid DBT disruptions.
• IT Plan: State-specific CBS migration plans to be ready by Sept 30, 2025.
• Vendor Contracts: Extend AMCs and software support till full integration.
• Day Book Integration: Begins May 1 and continues till CBS integration completes.

Alongside backend integration, the SOP emphasizes keeping rural customers informed and reassured during the transition.

Customer Communication and Public Awareness

17.1 - 17.10 Strategy for customer communication. 

• Pre-Amalgamation Notices: Publish information in local and national newspapers ahead of the amalgamation date. 
• SMS Alerts: Send timely updates to customers in local languages through text messaging. 
• Branch Posters & FAQs: Display printed communication materials and frequently asked questions at all branches. 
• Website & Call Centers: Update domains, upload transition-related FAQs, and ensure call center continuity. 
• Customer Meetings: Organise reassurance and information-sharing sessions during May–June 2025. 
• Staff Communication Scripts: Equip branch staff with uniform messaging to handle customer queries. 
• Unified Grievance Portals: Explore centralised complaint handling systems for the new RRB entity. 
• Account Continuity: Retain existing account numbers and branch codes wherever possible to avoid confusion. 
• Social Media Monitoring: Actively track digital channels and counter misinformation promptly. 
• Public Awareness Drive: Ensure customers are continually updated on all changes through local outreach.

Regulatory Dispensations and Tax Compliance

18.1 – 18.5: Statutory Coordination

• IFSC/MICR Codes: Request RBI for continuation.
• TDS & PAN Handling: Seek CBDT’s permission for old entity-level deductions.
• CERSAI & CKYC: Continue dual RRB system uploads temporarily.
• Tax Registrations: Approach relevant authorities for new GST, PAN, TAN numbers with gazette notification as proof.

As the May 1, 2025 implementation date approaches, NABARD’s SOP serves as a critical blueprint to ensure that the transition to a unified RRB structure is smooth, transparent, and customer-centric.