The All-India Nabard Employees Association (AINBEA) calls for greater regulatory and supervision controls for 28 newly merged Regional Rural Banks (RRBs) in 26 states and two UTs.
Nabad has been raising RRBs over the past few years, said Rana Mitra, General Secretary of Ainbea. “We will maintain their public sector character and further strengthen them in the services of rural poor,” he said. BusinessLine. Mithra recalled that the All India Regional Regional Rural Bank Employee Association fought for a long time for the merger of the RRB.
Configuring the Oversight Committee
The Centre notified the merger on April 7th in line with the concept of “one state, one RRB”. To oversee the process, the Ministry of Financial Services formed a state-level oversight board and a national-level project oversight board.
The state-level committee is encouraged to create and complete the state action plan by April 18th. They will hold a two-week meeting to monitor the progress of the merger and resolve the issue, sources say.
SOPS, Data Migration Plan
These committees will also complete standard operating procedures for assignees and assignees RRBS and Core Banking Solutions (CBS) partners to prepare a comprehensive data migration plan. The problem is evaluated and the design address is the same. Ensures minimum system downtime during the migration process.
National level committees are necessary to resolve issues arising from mergers. Issues appropriate guidelines/directions to the State Level Commission. Check the progress of the state-level action plan.
The role of labor unions
Mithra said the agricultural crisis underscored the urgent need to strengthen rural banks. The RRB must regain its role as a means of financial inclusion and rural empowerment. Working with trade unions, they can ensure a fair and rooted future.
“Looking back at the challenges that came before us, remember that unions are more than just guardians of workers’ rights. They are also managers of the collective spirit of humanity,” he said.
Systematic challenges
Originally designed to empower rural communities, RRB and Navard have tackled systematic challenges. NABARD’s ability to support the RRB and cooperatives is undermined by the withdrawal of low-cost funds from the Reserve Bank.
If central banks revive their contribution to NABARD, Mitra pointed out, they could direct more than 22,000 to 24,000 crores to rural development each year at low interest rates.
“West Bengal exemplifies the weakening of RRBs and cooperatives. In 2022-23, the RRBs only spent 9% of agricultural credit, compared to 12% nationwide,” he added.
Released on April 11, 2025
