RRB Transfer Policy: AIRRBEA Seeks Urgent Clarification from DFS

The All India Regional Rural Bank Employees Association (AIRRBEA) has formally written to the Department of Financial Services (DFS), Ministry of Finance, on February 27, 2025, seeking clarifications on the newly issued Transfer Policy Guidelines for Regional Rural Banks (RRBs) under GOI Order No. F.No.8/1/2025-RRB dated February 20, 2025. The letter highlights concerns over potential misuse of certain provisions and urges modifications to ensure fairness, transparency, and uniformity in RRB transfers.

AIRRBEA has welcomed the revised guidelines, which aim to promote transparency and establish a uniform, non-discretionary transfer system across RRBs. However, it has flagged several discrepancies compared to the Public Sector Banks (PSBs) and fears that some provisions could be misused by management, defeating the purpose of fair and structured transfers.

Image: AIRRBEA letter to review the transfer policy seeking clarity and modification

Major Concern Over Transparency

AIRRBEA has raised serious concerns over a fixed transfer tenure for Office Assistants and Attendants, which does not exist in PSBs. The association argues that this could lead to unfair administrative decisions. 

In its letter to DFS, AIRRBEA stated:"There is no fixed tenure for any transfers to workmen cadre in PSBs, whereas Transfers are proposed to Office Assistants & Office Attendants every five years in RRBs. And that too Office Assistants & Officers may be transferred to other Regions after two tenures in one Region. We submit our serious concern on this provision in the guidelines to RRBs, which is likely to be misused by the managements and defeat the very aim of the policy of transparency and fairness."

The Missing “Consultation” Approach

The 2025 transfer policy notably omits the term "consultation," a key element present in the 2015 transfer policy order.

Image: The Transfer Policy for RRBs of 2015

AIRRBEA Secretary General S. Venkateshwar Reddy told Kanal, “The revised transfer policy of 2025 includes some additions compared to the previous one, but it lacks a crucial element—consultation. Engaging with unions is essential, especially on matters like branch identification and categorization. Such decisions should not be arbitrary or unilateral. We strongly urge the inclusion of a consultation provision to ensure a fair and transparent process.”

The association has urged DFS to clarify that inter-regional transfers should not be mandatory but should occur only under administrative exigencies. If such transfers are necessary, AIRRBEA emphasized that they should be to nearby locations rather than distant postings that disrupt employees' personal and professional stability.

Proposed Modifications, Deletions, and Clarifications

AIRRBEA has suggested eight key modifications to ensure fairness in the transfer policy:

1. Define the Competent Authority for issuing transfer orders to prevent ambiguity.
2. Limit transfers due to administrative exigencies to prevent favoritism.
3. Exempt employees above 55 years from postings in remote or hardship locations.
4. Ensure specialized officers (Law, IT, Treasury, etc.) are assigned roles that align with their expertise.
5. Fix the tenure of Office Attendants at seven years, as per the previous policy.
6. Retain transfer protection for office bearers of trade unions, even after their promotion.
7. Remove the two-term ceiling for Office Assistants and Officers, as PSBs do not impose such a restriction.
8. Delete the clause that allows management to deny home-region transfers until an employee's retirement, as it may lead to misuse.

With RRB transfer processes already underway, AIRRBEA has urged the DFS to issue immediate clarifications and consult trade unions before finalizing the policy. The association has also sent copies of the letter to NABARD and the Ministry of Finance, seeking early intervention to prevent unfair transfer practices and maintain industrial harmony.