‘RRBs Must Have Greater Autonomy, Free from Sponsor Bank Control’: Retd. Canara Bank DGM

“Regional Rural Banks have reached a defining milestone in their journey,” he said, “but the next step must be greater autonomy to strengthen efficiency, accountability, and the very purpose they were created for.”  

A Career Rooted Rural Banking

Suryanarayana began his banking career in 1988 as a clerk at Golkonda Grameena Bank in Telangana, then sponsored by the State Bank of Hyderabad. After moving to the public sector, he went on to serve as Chief Vigilance Officer (CVO) in Prathama UP Gramin Bank, India’s first regional rural bank. His deep understanding of RRBs later earned him the position of Head of the RRB Division at Canara Bank, where he oversaw four major banks — Andhra Pragathi Grameena Bank, Karnataka Grameena Bank, Karnataka Vikas Grameena Bank, and Kerala Gramin Bank.

During his tenure, these four RRBs became the first set of rural banks in India to achieve comprehensive technological upgradation — a step that significantly modernised their operations and digital outreach.

Autonomy Through Independent File and Rank

Reflecting on RRBs’ organisational setup, Suryanarayana firmly advocated for sponsor bank–free leadership across all managerial levels. 

“RRBs must have their own chairmen and senior officials selected through an open market process,” he asserted. “The mindset and working style of sponsor bank officers don’t align with the unique character of RRBs. Their enforced deputations often lead to internal conflict and hamper institutional growth.”

Citing an example, he added, “If a sponsor bank’s Assistant General Manager is deputed to an RRB as General Manager that already has an AGM from within, it creates inevitable friction of the same cadres. Such dual authority stalls progress. The chain of command — from Chairman to Regional Managers — must be independent of sponsor bank influence.”

His views echo the long-standing demand of the All India Regional Rural Bank Employees Association (AIRRBEA), which has consistently advocated for open-market appointments in line with the K.C. Chakrabarty Committee recommendations to ensure professionalism and accountability in RRB management.

NABARD and DFS: True Supervisory Pillars

Suryanarayana also questioned the continuing dominance of sponsor banks in regulating RRB operations, asserting that the oversight responsibility already lies with statutory bodies.

“RRBs operate under the regulatory framework of the RBI, with monitoring by NABARD and the Department of Financial Services (DFS),” he said. “Beyond these authorities, any sponsor bank’s role is unnecessary — and often counterproductive. What should be guidance has turned into interference.”

He noted that while sponsor banks played a vital role in the formative years by providing financial and managerial support, the RRBs have since evolved into mature institutions with their own identity, capable of standing on their own. “Today, RRBs are financially sound, technologically capable, and socially relevant. The time has come to de-link them from sponsor banks and allow them to function as self-reliant, regionally attuned institutions.”

He also emphasised, “The future of RRBs depends on collaboration — employees’ unions and management must work hand in hand to ensure progress and competitiveness.”

Suryanarayana’s reflections, drawn from decades of experience across rural and public sector banking, encapsulate a pivotal message — that the next phase of RRB reform must prioritise autonomy over affiliation.

As RRBs celebrate their golden jubilee, his words resonate as both a tribute and a warning: the vision of inclusive, grassroots banking can only survive if the institutions remain free from external control and committed to the people they were created to serve.