One State One RRB: Promotion Process Halted at Madhyanchal Gramin Bank Amid Amalgamation Drive

The cancellation has left many staff members disheartened—especially those who had already cleared the written examination and were awaiting their interviews.

One employee told Kanal, “I sat for the written exam in January, and interviews were supposed to happen in March. But due to the ongoing amalgamation, the management postponed everything. This sudden denial of promotion is a shock for all of us.”

According to internal sources, the bank management attributed the halt to the implementation of the amalgamation process as part of the One State One RRB policy. The process aims to consolidate multiple RRBs in a state into a single entity for streamlined governance and improved financial health.

As per employees, the All India Regional Rural Bank Employees Association (AIRRBEA) reportedly reached out to NABARD for clarification. NABARD is said to have conveyed that the final decision on whether to proceed with promotions lies with the bank management.

Interestingly, in contrast, Baroda UP Bank, also undergoing amalgamation, announced promotions for its employees on April 15, 2025.

Legal Grounds for Continuing Promotions

Employees argue that halting promotions at this stage may be inconsistent with established legal precedent. Referring to a landmark judgment, an employee pointed to the Supreme Court ruling in Union of India vs. K.K. Vadera (1989), “The Court clearly held that employees cannot be deprived of their accrued rights of promotion due to administrative restructuring or anticipated changes.”

This case continues to be cited in public sector employment disputes, especially during organisational transitions.

As the One State One RRB initiative moves ahead across India, this case highlights the need to balance structural reform with employee rights and morale—ensuring that progress in policy doesn't come at the cost of bankers.