The Hindu Business Line : Amalgamation of RRBs demanded

THE All-India Regional Rural Bank Employees' Association (AIRRBEA) has urged the Government to approve the recommendations of the Bankers Committee and amalgamate the RRBs to form six zonal rural banks in the country.

Addressing newspersons here, the Association Secretary, Mr S. Venkateswar Reddy, said the Bankers Committee, comprising the Chiefs of commercial banks, representatives of RBI, Nabard and Central and State Governments, had submitted its report to the Government on May 1.

Taking cue from these recommendations, the association asked the Government to liberate the RRBs from the clutches of sponsor banks and constitute an apex body over the zonal banks to coordinate and direct in overall development of the rural economy, Mr Reddy said.

Currently, there are 196 RRBs spread over 460 districts with a network of about 14,500 branches in the rural areas. Both the Central and State Governments have equity in these banks.

Mr Reddy said the association had asked the Government to reorganise these banks into a National Rural Bank by delinking them from 28 commercial banks. Such National Rural Bank should be made responsible and accountable for the needs of the rural areas.