Regional Rural Banks Get New Transfer Policy After a Decade

The Ministry of Finance, Government of India, has introduced a revised Transfer Policy for Regional Rural Banks (RRBs) after a decade, aiming to bring uniformity, transparency, and fairness to employee transfers. The new policy, formulated in consultation with NABARD, provides clear guidelines on tenures, automation of transfer processes, and special provisions for employees facing hardships.

Notably, NABARD had last issued a transfer policy for RRB officers and employees in 2015. This long-awaited revision seeks to ensure uniformity, fairness, and efficiency in managing workforce movements across the RRB network.

Ensuring Fair Transfers with Defined Guidelines

In a letter dated February 20, 2025, addressed to all RRB Chairpersons, the Ministry of Finance emphasized the need for a structured transfer policy that ensures a balance between administrative efficiency and employee welfare. The letter stated:

“With a view to promoting greater transparency and ensuring a uniform and non-discretionary transfer policy in RRBs, the Government, in consultation with NABARD, has revisited the existing guidelines. The revised policy ensures that transfer exercises are completed in a time-bound manner and adhere to the best HR practices.”

Image: The transfer policy released by the DFS, Ministry of Finance

Key Highlights of the Revised Transfer Policy

The revised policy includes 19 major provisions, all of which remain to be implemented by individual RRBs:

1. Administrative Layers Defined – Clear categorization of Head Office, Regional Office, Branch Office, and CPCs, with fixed tenures.
2. Timely Transfers – Transfers to be completed before June every year to prevent mid-year disruptions.
3. Rotation Norms – Officers to be transferred every three years, Office Assistants every five years.
4. Transparency Mechanism – Annual publication of seniority lists and vacancies to ensure fair transfers.
5. Seniority-Based Transfers – Transfers to be based on seniority; exceptions must be recorded and documented.
6. Automation of Transfers – Banks to develop an online portal for transfer requests, location preferences, and policy access.
7. Difficult Centre Preference – Employees in difficult locations to get transfer priority after two years.
8. Grievance Handling – Employee grievances regarding transfers to be addressed promptly.
9. Appeals Process – A Transfer Appeals Committee to resolve appeals within 15 days.
10. Union Office Bearers Protection – Transfer protection for union leaders, except on promotion.
11. Regional Transfers – Maximum two tenures (six years) in one region, followed by a mandatory transfer.
12. Home Region Posting Before Retirement – Employees may be transferred to their home region three years before retirement.
13. Exemptions for Senior Employees – Employees above 55 years of age to be exempted from remote postings.
14. Special Consideration for Persons with Disabilities – Transfers to be handled case-by-case as per GOI guidelines.
15. Mandatory Rural Posting – Every employee must serve one full tenure in a rural/semi-urban branch.
16. Women Employee Protection – Transfers of female employees to prioritize safety and family considerations.
17. Spouse Transfers – Employees with spouses in government/public sector jobs to get preferential postings.
18. Medical & Childcare Provisions – Employees with medical or maternity-related challenges to get special considerations.
19. State Bifurcation Consideration – Special provisions for transfers related to state bifurcations (e.g., APGVB and Telangana Grameena Bank split).

The Ministry has directed all RRBs to incorporate these provisions into their transfer policies, ensuring compliance and fair implementation. With the policy aimed at balancing operational needs with employee welfare, its success now depends on swift execution by individual banks.