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Wednesday, Apr 2, 2025 | India

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Regional Rural Banks Finally Granted 12th BPS Pay and Allowance

The directive for the salary revision according to the 12th BPS comes after a prolonged delay for RRBs, as it was implemented in the sponsor banks back in mid-March 2024.

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Author: Saurav Kumar

Published: July 8, 2024

In a significant move towards equitable treatment for Regional Rural Bank (RRB) employees, the Department of Financial Services (DFS) has mandated the implementation of salary revisions according to the 12th Bipartite Settlement (BPS). The notification dated July 8, 2024 has ordered all the Chairpersons of the RRBs directed to implement the revised salary on par with the Public Sector Banks.

Image: DFS directive on Revision of Salary and Allowance of RRBs

The order said, “In exercise of the powers conferred under second proviso of Section 17(1) of the Regional Rural Banks Act, 1976, the Central Government, consequent upon the revision of the wages/pay structure of the workmen / officers’ employees of the Public Sector Banks in terms of the 12th Bipartite Settlement/ 9th Joint Note, conveys approval for payment of ad-hoc amount / on ad-hoc basis in line with the said settlement / Joint Note, pending amendments to the regulations.” 

The directive for the salary revision according to the 12th BPS comes after a prolonged delay for RRBs, as it was implemented in the sponsor banks back in mid-March 2024. 

AIRRBEA Congratulates RRBs on 12th BPS Benefits 

The All India Regional Rural Bank Employees Association (AIRRBEA), representing a unified voice of RRB employees, welcomed the DFS’s decision, stating that it is parity with the banking industry and parity within RRBs. The letter mentions that, “this has been possible due to our long term struggles, series of conciliations, continuous discussion / representation to DFS / NABARD and every concerned authority to bring in total parity in all allowances - that has yielded the success.”

Image: The Letter of AIRRBEA on Extension of 12th BPS Benefits to RRBs

During the 12th Joint Consultative Committee (JCC) meeting held at the NABARD headquarters on June 12, 2024, DFS representatives assured the timely issuance of this order. The meeting, which saw active participation from AIRRBEA members, focused on addressing various disparities and challenges faced by RRB employees.

AIRRBEA’s Continued Advocacy

In recent times, AIRRBEA has unequivocally highlighted the disparities faced by RRBs compared to their sponsor banks. They have brought attention to issues such as discrepancies in allowances, capital infusion, and digital onboarding

Tags:12th BPSDFSRRBsAIRRBEAAllowancesPay ParitySponsor Bank