RRB Amalgamation: AIRRBEA Urges DFS to Safeguard Promotions, Uniform HR Practices During Transition

In an appeal to the Department of Financial Services (DFS), the All India Regional Rural Bank Employees Association (AIRRBEA) has expressed serious concerns over HR disruptions amid the ongoing “One State One RRB” amalgamation process. The association has requested immediate intervention to ensure that employee rights—particularly promotions and recruitment—are not jeopardized during the transitional phase.

The letter, dated April 19, 2025, was addressed to DFS Director Sri Sushil Kumar Singh, with copies marked to NABARD, sponsor banks, and RRB Chairman.

Image: AIRRBEA letter to DFS demanding monitoring committee

Promotion Process Abruptly Halted

 One of the primary concerns flagged by AIRRBEA pertains to the suspension of ongoing promotion interviews in some RRBs, notably Madhyanchal Gramin Bank, despite approvals already being granted by their respective boards. The association noted that the abrupt halt on April 11, 2025, has caused unrest among employees who had progressed through multiple stages of the process.

Citing Supreme Court and Delhi High Court judgments, AIRRBEA emphasized that ongoing promotions cannot be legally stalled due to administrative restructuring or merger proposals, and such interruptions could expose banks to future legal challenges.

Call for Clarity and Consistency Across RRBs

AIRRBEA has urged DFS to issue clear instructions to all RRBs to continue promotions and recruitment processes wherever official notifications or board approvals are already in place. The association argued that a uniform approach is necessary to avoid ambiguity, protect employee morale, and ensure legal compliance.

Uniform HR Policies Across the Amalgamated Entity

The letter also calls for harmonisation of HR policies, requesting that:

• No existing benefits or allowances from any transferor RRB be withdrawn or diluted.
• Best practices from all RRBs be retained and extended across the new entity.
• Loan schemes, transfer policies, and service conditions are applied fairly and uniformly.

To build confidence among employees, AIRRBEA recommended that all HR and Industrial Relations decisions post-amalgamation be made in consultation with employee unions and associations.

Staff Rationalisation Must Adhere to Norms

AIRRBEA supported NABARD’s SOP recommendation for fresh manpower assessment post-amalgamation, based on actual business volumes as of May 1, 2025. However, the association stressed that this must be done strictly in line with Mitra Committee norms, ensuring that vacancies are appropriately filled to support business growth and reap the full benefits of the restructuring.

Need for Centralised Oversight and Zero Deviation

Reiterating a DFS directive dated March 4, 2025, AIRRBEA reminded that all RRBs must follow government guidelines without discretionary deviations. Any ambiguity in interpretation, the letter stated, must be referred to the DFS rather than being interpreted at the bank level.

The letter ends with a firm request for DFS’s timely intervention to prevent inconsistent practices across RRBs and to uphold employee confidence. With just days remaining before the May 1 rollout, AIRRBEA’s appeal highlights the need for not just structural alignment—but also human sensitivity and procedural fairness—as the sector undergoes one of its most significant reforms in decades.