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Nearly one lakh employees working in Regional Rural Banks (RRBs) can expect their arrears of pay revision and allowances soon.
The Department of Financial Services, Ministry of Finance, has directed the boards of RRBs to make payment of arrears after approval of respective boards subjected to certain norms, according to a circular dated April 20.
Previously, in a circular issued on April 1, the government had directed the RRB to pay wage revision arrears in two instalments at six month’s interval with the first instalment to be released in the last quarter of FY2021-22.
However, the ministry has received several representations from employees’ unions of RRBs and it was reported that RRBs had made ‘substantial’ provision for payment of arrears in their books of accounts.
“The matter has been since reviewed in consultation with Nabard,’’ the Ministry said while explaining the reasons behind the new directive.
As per the revised norms, those RRBs having a Credit to Risk-weighted Assets Ratio (CRAR) of more than nine per cent as on March 31, 2021 may pay the wage revision arrear liability from their own resources in appropriate number of instalments to be independently approved by the respective boards of directors of the concerned RRB.
The RRBs having CRAR less than nine per cent may pay arrears in four equal instalments during current financial year or more than four instalments as decided by the boards of RRBs keeping in the position relating to capital, liquidity, provisions made towards wage revision and other liabilities in the RRBs concerned, the circular said.
When contacted, V Arvind, Chairman, Telangana Grameena Bank (TGB) said the decision will benefit employees as boards can decide on payment of arrears as early as possible. “There are 45 RRBs in the country and almost half of them have CRAR of above 9 per cent,” he added.
There are nearly one lakh employees working in RRBs. The effective date of pay revision is November 1, 2017. The pay has been revised to the tune of ₹12-15 per cent across difference categories and RRBS.
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