The Central Government's proposal for another round of consolidation among RRBs has received mixed response from a couple of workers' unions in the RRBs. While some sought the formation of a National Rural Bank of India (NRBI) by amalgamating all RRBs and de-linking RRBs from the sponsor banks, others sought the merger of RRBs with their sponsor banks.
Mr Vasanth Bannigol, Joint Secretary of the All-India Regional Rural Bank Employees Association, said that at the national level there should be an NRBI, and each State should have a State-level RRB.
However, All-India RRB Officers Federation, affiliated to AIBOC, said that it is demanding the merger of RRBs with their sponsor banks.
Mr B.N. Nageswar Rao, General Secretary of Saptagiri Grameena Bank Officers' Organisation, Tirupati, said that the federation had taken up this matter with the Finance Minister.
He said that the sponsor banks have been supporting the RRBs since their inception. The entire work culture, process and technology of RRBs are sponsor-bank specific. The merger of RRBs with sponsor bank would help in better control, viability to make financial inclusion a success story.
He said the proposal for cross merger is fraught with several uncertainties and would be sheer experimentation with disastrous results. Stressing the need for shelving such a proposal, he said the Government should consider strengthening the relationship of RRBs with sponsor banks by the merger of former with the latter.