The S.K. Mitra Committee: Steering RRBs Through Change and Challenges

Regional Rural Banks (RRBs) across India are grappling with severe staff shortages, a critical issue that remains largely unaddressed by their management. Despite the persistent challenge of understaffing, unions and associations of RRB employees and officers continue to voice concerns over the violation of S.K. Mitra Committee recommendations.

Formation of S.K. Mitra Committee

The S.K Mitra Committee was formed in August 2012 by the Government of India under the chairmanship of Dr. S.K. Mitra, Executive Director of NABARD, to reassess manpower planning and staffing patterns in RRBs post Core Banking Solution (CBS).

Image: NABARD notification on the recommendations of Mitra Committee 

Recommendations of S K Mitra Committee

The S.K. Mitra Committee put forth several key recommendations aimed at improving human resource management and operational efficiency across all levels of RRBs, from individual branches to their head offices. Some of the most crucial recommendations from the committee include:

• Categorisation of RRB Branches: The report categorises RRB branches based on performance, location, and business potential. This categorization helps in allocating resources, staffing, and attention according to the specific needs and potential of each branch, thereby improving overall productivity.

Image: Categorization of Branches as per Mitra Committee 

• Staffing Pattern: The S.K Mitra Committee has been pivotal in shaping the staffing patterns and operational efficiency of RRBs. Established to address the challenges faced by RRBs, the committee recommended a new categorisation of RRB branches to optimise their functioning. This categorisation was based on factors like business volume, geographical location, and the socio-economic conditions of the areas served by these branches.  

The committee guideline also emphasises the need for a more streamlined staffing pattern, suggesting the deployment of personnel based on the specific needs of each category of branch. The approach was aimed at enhancing the effectiveness and productivity of RRBs, ensuring they could better fulfill their mandate of providing financial services to rural and underserved populations.

Image: Staffing pattern as per S K Mitra Committee Recommendation

• Norms for Categorisation of RRBs in North East Region: Special norms are proposed for the North Eastern Region (NER) to address its unique challenges, including geographical constraints and socio-economic conditions. These norms aim to provide flexibility in staffing and resource allocation to better serve the region’s needs.

Image: Categorization and Staffing Pattern of RRB branches in North Eastern Region 

The report also covers aspects like recruitment policies, training and development, promotional avenues, performance appraisal systems, and measures to ensure staff retention and motivation. However, despite the established staffing norms, many RRBs have been found to flout the Mitra Committee guidelines, leaving the issue of staff shortages unresolved.

Controversy Surrounding Mitra Committee

The formation of S K Mitra committee involved discontent among the RRB employees and clerical workforce. All India Regional Rural Bank Employees Association (AIRRBEA) opposed Mitra committee recommendations alleging it to be biased toward the officers cadre.

Tamil Nadu Grama Bank Officers Association President Anto Gaulbert told Kanal, “Committee is an unscientific, officer oriented recommendation endorsing volume of business that curtails workmen concentration in RRBs burdening the employees.”

He further added, “Initially AIRRBEA opposed Mitra committee but even that remains unimplemented and was not followed in most of the RRBs and so miserably a day came when we were forced to ask the Management of RRBs at least to implement this recommendation.” 

As per Anto, the manpower planning in RRBs should be based on the volume of vouchers or transactions done because RRBs represent banking with rural masses with the unbanked masses of the society. For example, financial inclusion programs, social security schemes were successfully executed by RRBs to economically uplift the rural masses by rendering banking services not based on profit.

Violation of Mitra Committee Recommendations 

All 43 RRBs across India are grappling with a severe staff shortage, which directly contradicts the staffing recommendations outlined by the S.K. Mitra Committee. With thousands of vacancies unfilled, employees in RRBs are under immense pressure, leading to a deteriorating work-life balance.

This shortage of staff has affected several RRBs, including Karnataka Gramin Bank, Baroda UP Bank, Baroda Rajasthan Gramin Bank, and Baroda Gujarat Gramin Bank, Jammu and Kashmir Grameen Bank, Tamil Nadu Grama Bank and Uttarbanga Kshetriya Gramin Bank.  

The AIRRBEA) , the largest union representing RRB employees, has been consistently advocating for the implementation of the S.K. Mitra Committee’s recommendations. Despite these ongoing demands, the managements of various RRBs have yet to address the issue. Nevertheless, the S.K. Mitra Committee’s guidelines remain crucial for ensuring adequate staffing and maintaining operational efficiency, even amidst these challenges.