RRBs Witness Sponsor Banks’ Senior-Level Deputations, Signaling Strategic Dominance

• Andhra Pradesh Grameena Bank
• Manipur Rural Bank
• Puducherry Grama Bank

An employee from Andhra Pradesh Grameena Bank (APGB), speaking to Kanal on condition of anonymity, said that previously only the Chairman’s position was filled through deputation from the sponsor bank. “However, after the amalgamation, around eight General Managers from Union Bank of India have been placed in key managerial roles within APGB. This has significantly expanded the sponsor bank’s operational influence within the RRB."

Recently, a retired Deputy General Manager of Canara Bank, who had headed the RRB Division, reiterated that sponsor bank deputations have increasingly moved from supportive oversight to dominance, signaling a restructuring of internal authority across several RRBs.

RRBs Receiving Deputation at Scale-IV and Above
A larger group of RRBs continue to have sponsor bank officers deputed at the Scale-IV and above level—positions that typically include regional heads, deputy general managers and leadership roles directly shaping policy and business direction:

• Arunachal Pradesh Rural Bank
• Assam Gramin Bank
• Bihar Gramin Bank
• Himachal Pradesh Gramin Bank
• Jharkhand Rajya Gramin Bank
• Meghalaya Rural Bank
• Mizoram Rural Bank
• Nagaland Rural Bank
• Sarva Haryana Gramin Bank
• Tripura Gramin Bank
• West Bengal Gramin Bank

A senior officer from West Bengal Gramin Bank (WBGB), speaking to Kanal on condition of anonymity, confirmed that sponsor bank deputations have extended beyond senior leadership to operational oversight roles as well. “Scale III and IV officers from the sponsor bank are being deputed into RRBs. In the name of sensitisation of RRB officers, sponsor banks have even deputed auditors. This is gradually reshaping our organisational control structure leading to dominance,” the officer said.

He further pointed out that, “As per Govt. of India guidelines, only the Chairman is to be appointed from the sponsor bank. General Managers and other higher leadership roles are meant to be drawn from within RRBs themselves to ensure institutional continuity and indigenous leadership. The current scenario deviates from that spirit.”

Arbitrary Power Allegations on Sponsor Banks
As RRBs expand under the One State, One RRB policy and strengthen their financial footprints, questions regarding internal subversion of RRBs have emerged. Many officers assert that the deputation system has moved far beyond its original objective of providing transitional support, and has instead begun to disrupt internal leadership growth and functional autonomy within RRBs.

According to Abdul Sayeed Khan, General Secretary of NFRRBS, the deputation model has crossed its intended purpose. Speaking to Kanal, he said, “Sponsor banks are now exercising arbitrary authority by deputing an excessive number of officers to RRBs. The practice has reached a critical stage where it is harming the functional integrity of these banks. To counter this scenario, we need a National Rural Bank of India.” 

Another RRB officer highlighted the competitive disadvantage created by sponsor bank involvement. “Sponsor banks directly monitor our current and operational accounts. This allows them to identify our customer base and strategically establish competitor branches. It naturally restricts our growth,” the officer told Kanal. 

As the discussion around deputation deepens, the issue is no longer merely administrative. It prompts a question: Should leadership continue to be externally deputed, or should RRBs begin building and promoting their own senior management pipelines?