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Why NABARD Suspends Promotion Categorisation Amid RRB Amalgamation?
NABARD’s advisory directs all Regional Rural Banks undergoing amalgamation to halt 2025-26 promotion categorisation until post-amalgamation audit.
Author: Saurav Kumar
Published: 21 hours ago
As the “One State One RRB” policy approaches its May 1, 2025 rollout, the National Bank for Agriculture and Rural Development (NABARD) has issued a key directive. It instructs all Regional Rural Banks (RRBs) undergoing amalgamation to halt the initiation of promotion categorisation processes for the year 2025–26.
The directive, dated April 22, 2025, was sent to Chairman of all transferor RRBs and outlines mandatory procedural steps to align with the restructuring timeline.
Promotion Categorisation Paused Until Post-Amalgamation
In a significant move, NABARD has instructed RRBs not to begin the categorisation of branches for manpower assessment or promotion processes for FY 2025–26 until after the merger and subsequent approval of business data.
The circular states, “We hereby advise that all RRBs undergoing the process of amalgamation shall not initiate the process of categorisation for FY 2025–26. Such categorisations shall be done only by the transferee RRB after the effective date of amalgamation, i.e., 1st May 2025 and once the audited figures… are approved by its Board of Directors.”
NABARD has clarified that even if any bank has already started its promotion-related activities, the process must be halted by April 30, 2025.
Fresh Assessment to Follow Amalgamation
The directive reiterates that future promotions and recruitment will be contingent on a fresh assessment of business volumes and manpower—based on March 31, 2025 figures—conducted by the new, amalgamated RRB.
“Such a process will be undertaken by the transferee RRB (amalgamated RRB) after the effective date of amalgamation… and upon fresh assessment of the manpower,” the advisory added.
The NABARD directive gains particular relevance in light of recent developments at Madhyanchal Gramin Bank, where the interview phase of promotions was paused just days earlier due to uncertainties surrounding the amalgamation process. Interestingly, in contrast, Baroda UP Bank, also undergoing amalgamation, announced promotions for its employees on April 15, 2025.
As the historic reform of RRB amalgamation is underway, NABARD’s circular underscores the importance of administrative consistency and structural preparedness ahead of the May 1 transition.
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