KA BANK NONGKYNDONG OFFICERS' ASSOCIATION

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Circular no. - 56 Date-28/07/09

To
The General Secretary

All Units/State Federations & C.C. Members, AIRRBEA

Sub: Meeting with Banking Minister/ Labour Minister and Joint
Secretary, Banking G.O.I.

Dear comrades,

We had been to New Delhi on 27th July 2009 and could meet the following Honble Ministers, G.O.I. and Shri Tarun Bajaj, Joint Secretary, B & I. Details of Issues discussed with them are given below :

1. Shri Namo Narain Meena, Honble Minister of State for Finance.
2. Shri Harish Rawat, Honble Minister of State for Labour.
3. Smt. D. Purandareswari, Honble Minister of State for H.R.D.
Smt P. Laxmi Jhansi M.P from A.P. took us to Shri Meena and Shri Purandareswari with Official appointment.

Issues discussed with Shri Namo Narain Meena, Minister of State for Finance, GOI.
We submitted all the relevant papers detailing the issues. Shri Meenaji gave a patient hearing and assured Smt Laxmi Jhansi, M.P. and our delegation that he would consider all the issues placed before him and immediately advised the Banking Division to submit their views. He was surprised and shocked to learn the level of difference in pension, lack of promotional opportunities and manpower.

i) Restructuring of RRB- Formation of NRBI with state level RRB under it Delinking from Sponsor Bank.- Implementation of second phase of Prof. Vyas Committee Report.

ii)Parity of Superannuation Benefits.
iii) More Branches in the unbanked areas and to ensure adequate Manpower with regular promotion and recruitment in RRB.

iv) Fund and Service Charge for NREGA and other Govt Scheme.- second counter and cashier for all such schemes.

Positive reaction relating to pension and promotion came from the Honble Minister.

Issues discussed with Shri Harish Rawat, Minister of State for Labour,GOI.
1) Parity of Pension benefit as extended in the Banking Industry.
2) Parity of P.F. benefit as being allowed in the Banking Industry.
3) Parity of Service Rules & Promotion Rules as available in the Banking Industry.

Shri Rawatji immediately advised the concerned official to sit with our representatives on 28th July. We accordingly arranged the discussion to be further followed by submission of some documents.

Issues discussed with Shri D. Purandareswari , Honble Minister of H.R.D, G.O.I.
1. National Rural Bank.
2. Parity of Pension Benefit.
3. Govt. Fund of Education Department with RRB.

Issues discussed with Shri Tarun Bajaj, Joint Secretary( B & I,)GOI.

1. Restructuring of RRB - GOI is of the view that next phase of amalgamation of RRBs may be considered after reviewing the performance of amalgamated RRB. We placed the entire historic background from the year 1982 to the year 1992 and from the year 1993 to2003 including the reports of Parliament Standing committee, Prop. Vyas Committee, A.K. Purwar Committee and F.Ms statement in the Parliament during discussion on NRBI Bill raised by Shri Basudev Achariya M.P.
Banking Division agreed to consider the whole issue denovo with reference to other relevant factors.

2. Parity of superannuation benefits.
Banking Division appears to be still worried for (paying capacity) of some RRBs if
Parity is extended. We referred to direction of supreme Court in this regard. GOI is of
the view that on receipt of Financial Burden from Actuary appointed by NABARD,
sharing of burden may be finalised in consultation with Negotiaating Forum by the
Associations. We made our stand clear that RRBs staff and Management will have to
follow exactly the same procedure in this regard as followed in the Banking Industry,
where sharing of additional financial responsibility has come only after 8th Bipartite
settlement only for the increased wage load.

3. Opening of New branches in next 3 years by the RRBs with need based additional
Manpower : We have detailed discussion on it and G.O.I. agreed to review the entire issue in the meeting of RRB Chairman on 18th August 2009.

We placed our demand for full autonomy to RRB in case of Manpower planning on the
basis of outreach, no of vouchers, potientials, hazards and projections in addition to
core business. Thorat Committee recommendation as approved by GOI may be taken
as Guiding Factor but not as Finality Factor.

4. Proposed Amendment of Service/Promotion Rules.

We demanded that-
a) Parity of Service condition as per Public Sector Bank in case of Cadre/ Post/ Designation/ Transfer Policy/ Promotion Policy and disciplinary matters.
b) All staff to be considered eligible for promotion after fixed period of service without any bar for educational qualification like P.S.B.
c) Relaxation of Age for in-service candidates in case of Recruitment Test for higher cadre to avoid the problem of attrition.
d) No. Officer can be transfered outside the service area of his own RRB, as proposed, without the consent of the incumbent.
e) For the Promotional written test from Messengers to Clerical Cadre, let the RRBs be kindly advised to take the help of Sponsor Bank Training Centre or Local college etc to avoid the cost of IBPS in line with Thorat Committee recommendation as approved by G.O.I.

GOI agreed to consider all the above issues while amending the Rules but did not give any guarantee for considering all the suggestions .GOI has already advised NABARD that RRB board can consider any organization including IBPS for promotional test.

5. Parity of other Allowances and Benefits- details to be incorporated in the proposed amendment of RRB staff Rules like P.S.B : We explained that the interpretation of Supreme Court order by GOI relating to scheme of GOI is wrong. Anyhow, GOI is of the view that such issues henceforth may be taken up with and decided by Negotiating Forum which has already been declared by NABARD.

Some Other Issues taken up with GOI for discussion on 18th August 2009.
a. Consortium Finance to Food Corporation of India by RRB along with Sponsor Bank / NABARD to increase CD. Ratio where there is surplus fund.
b. Fund Support to RRB for opening branches in unbanked areas from budget allocation.
c. Financial Inclusion by RRBs with Trusted Human Face.
d. Service Charge to RRB to meet additional cost for NREGA. Proportionate Govt. Fund.
e. No. outdated materials for CBS to RRB.
f. Staff welfare Scheme in details

Other Informations.

Our Supreme Court case on Pension
The transferred cases for pension came before Registrar, Supreme Court on 20.07.2009. Since the notices have not yet been served, this case would appear again before the Registrar, Supreme Court on 27.08.2009.

Latest Amalgamation

Marathawada G.B. and Aurangabad Jalna GB have been amalgamated on 20.07.2009 to form Maharasthra Gramin Bank sponsored by Bank of Maharastra.

So, the present number of RRBs is 84 having 47 amalgamated RRBs, 36 stand alone RRBs and
one new RRB in the state of Pandichery. Further two such amalgamations will take place in the
state of U.P. to make an end of first phase of amalgamation .

Full Regularization of Messengers from Date of Joining
The Management of Krishna GB and Jaipur Thar Gramin Bank moved Honble Supreme Court against the respective high Court Judgement in favour of regularization of messenger from initial date of joining . In both the cases, Honble Supreme Court upheld the decision of High Court and dismissed the petition of the management.

Agitation in Units.
Our units at South Malabar GB, Pragathi GB, Pandayan GB, Rajasthan GB, Baroda Rajasthan GB, Paschim Banga GB, Jharkhand GB etc, have been continuously agitating against the Management. In each case AIRRBEA intervened with the Sponsor Bank and NABARD. Respective state federation of BEFI in the state of Tamil Nadu, West Bengal, Kerala etc. have extended their full cooperation. Agitations have been withdrawn or deferred after settlement with the Management. The issues of Baroda Rajasthan GB are with R.L.C Rajasthan.

9th Bipartite Settlement
C.L.C has convened a conciliation meeting on 31.07.2009. In case of failure, all India strike is a must in commercial banks on 6th & 7th August 2009. Our units will not join strike but will attend all other programmes of UFBU.

Joint Forum of Gramin Bank Unions
We hope that all our units have arranged for sending post card with the demands signed by our members to FM at the call of JFGBU. The Forum has requested Honble Finance Minister, GOI and Chairman, NABARD for appointment.

Our Own Programme
We hope our units are serious enough to contact the Member of Parliament from their respective area with our demands at the call of AIRRBEA.

With warm greetings,

Yours comradely

Dilip Kumar Mukherjee
GS, AIRRBEA

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LATEST AIRRBEA CIRCULAR/LETTERS

CirculICircular No.53 Dated : 12 Jun 2009

ARRBEA meets Finance Minister, Govt. of India

Com. Dilip Kumar Mukherjee, GS, AIRRBEA along with Com. Banawarilal, AGS AIRRBEA has met Sri Pranab Mukherjee, Hon’ble Finance Minister, Govt. of India at his residence, New Delhi on 10thJune 2009 at about 10 P.M. The main issue discussed with him was

1..Parity of Pension of RRB staff in line with Pension Scheme in Banking Industry

We submitted the detailed historical background of this issue along with direction of Hon’ble Supreme Court & Tribunal Award Award and the latest development with appointment of Actuary by GOI through NABARD.

Hon’ble Finance Minister has gone through each and every line of our Memorandum meticulously and wanted to know from us as to whether IBA has got any role to play in this regard and if there is any legal bottleneck. We explained in clear terms that GOI, as an Employer can very well extend “Parity of Pension Benefit simply by administrative order”. Hon’ble Finance Minister assured us to consider it sympathetically and take appropriate decision after consulting the Banking Division.

OTHER NATIONAL ISSUES PLACED BEFORE THE F.M. FOR CONSIDERATION IN THE BUDGET SPEECH

Formation of National Rural Bank with State Level RRB under it. Delink RRB from Sponsor Bank

2. Adequate manpower to face the increased workload for core business and implementation of

NREGA, old age pension etc schemes with reference to number of A/c, voucher and beneficiaries- Minimum three promotions to each RRB staff during his entire service career- if & where not possible- to offer automatic switch over to higher pay scale to workman also like sponsor bank to “Special Assistant” or other wise after a fixed tenure of service in SBI. Promotion Rule should be amended accordingly. Thorat committee recommendation should be reviewed denovo with particular reference to “Categorisation of branch” and “assessment of manpower” in the changed perspective of Social sector schemes where the R.R.B.s are to play a vital role for “inclusive growth”.

RRBs, being poor man’s bank at his doorstep should be exempted from Income Tax.

Exemption was there as provision of the Act for the RRBs & Cooperative Banks

4.Extention of capital support to the extent of accumulated loss of some RRBs- as one time measure.

G.S. AIRRBEA meets Minister of State for Rural Development, GOI

G.S., AIRRBEA has met Sri Pradeep Jain, Hon’ble Minister for State for Rural Devp., GOI in his office at New Delhi on 10^th June 2009 and placed the following issues:

To issue appropriate order for parking the Government funds under NREGEA and other Central Schemes with RRBs also since the RRBs play a vital role in the disbursement of wages to individual beneficiary under such schemes.
Let the Ministry of Rural Development, GOI allow service charge to the extent of 3% to the RRBs which handle NREGEA Accounts and other such schemes or otherwise it would be impossible for the RRBs to attend both the regular customers and beneficiaries under the Government Schemes with the present staff strength & single counter.
Let the Ministry of Finance be requested to consider no. of beneficiaries, no. of Accounts also while assessing the manpower in the RRBs.

JOINT FORUM OF GRAMEEN BANK UNIONS

We are separately issuing the circulars issued by Jt. Forum of Grameen Bank Unions as decided in the meeting of Joint Forum of Gramin Bank Unions at New Delhi on 8^th & 9^th June 2009.

ACTION POINTS

i) Our State Federations are requested to contact the State Federations of other constituents of Joint Forum of Gramin Bank Unions in their respective State and to form State Level Joint Forum of Gramin Bank Unions as formed at the Apex level. In the States where we are majority, we should take the lead and get it formed by 15^th July, 2009.

ii) Our each State Federation will arrange for printing of Post Card as per model given in the Circular and send it to each unit immediately. Cost may be reimbursed by the Unit, if and where, necessary.

If and where the State Federation is not having immediate sufficient fund to get it done, Units of such States will have to undertake the responsibility for printing of such postcard.

iii) Each Unit should send the printed postcard to each member of AIRRBEA and Units will have to ensure that such printed post cards addressed to Finance Minister are duly signed by each staff member of AIRRBEA and sent to the Finance Minister.

iv) The entire operation must be completed by 15^th July 2009

v) The Model letter for printing of postcard may be translated in Hindi and printed accordingly

PROGRAMS OF AIRRBEA

Issues and programs as decided in the last meeting of the Working Committee of AIRRBEA at Kolkata on 7^th Jun 2009 has been circulated vide our Circular No. 52 Dated 08-06-09

ACTION POINTS

i. Each Unit affiliated to AIRRBEA will arrange for immediate contact with new Members of Parliament immediately at his residence or in a meeting to be arranged by our Unit in his honour or otherwise.

ii. Our letter addressed to the Member of Parliament may kindly be submitted to Hon’ble Members of Parliament in the service area of each RRB and explain the issues to the M.P. so that the Members of Parliament get fully convinced with our issues and send their views with a forwarding letter or in a separate letter detailing our issues requesting for resolution to Finance Minister, GOI

iii. If possible, copy of the forwarding letter or separate letter likely to be sent by the Member of Parliament to be sent to our Central Office also.

iv. Our letters addressed to the Member of Parliament may be translated into Hindi by the State Federation or Unit, if and where necessary

IMPORTANT DECISIONS OF THE WORKING COMMITTEE MEETING HELD AT KOLKATA ON 7-JUN- 2009

I. Pension Case – in the High Court & Hon’ble Supreme Court

It was decided in the meeting that all strategic actions will be taken by AIRRBEA while transferring our Pension Case before Karnataka & Other High Courts to the Hon’ble Supreme Court.

ii. Contact and Campaign

It was decided that all the Members of Parliament newly elected as well as members of Rajya Sabha including Hon’ble Ministers of GOI will have to be contacted personally in their own respective constituency in the service area of RRB on the main three national issues as indicated in Circular No. 51. Unit may arrange a meeting with the newly elected MP or Central ministers with wide media coverage for submission of our Representation.

iii. Meeting of Representative Members of Parliament of all political Parties to be arranged at New Delhi by AIRRBEA as suggested by Com. M. K. Pandhe, President, CITU during last Dharna at Delhi.

TRAINING CAMP OF T.U. LEADERS

It was decided in the last CC meeting that four T.U. Training Camps would be arranged by different State Federations with the financial assistance from AIRRBEA. Unfortunately it was found that such T.U. camp has not taken place in any such State. It has been decided that all such training camps will have to be completed by 30^th Sept, 2009 positively. G.S., North Eastern Zone proposed to hold such camp and requested for financial assistance.

PROPOSED AMMENDMENT OF RRB STAFF SERVICE REGULATIONS & RECRUITMENT-CUM-PROMOTION RULES

Details of the subject-wise views on the recommendation of Thorat Committee and Amaresh Kumar Committee Reports as submitted by AIRRBEA in line with Service conditions/Recruitment-cum-Promotion Rules in the Banking Industries as per Bi-partite Settlement etc. have been published in the Journal of AIRRBEA. The views expressed by AIRRBEA on each item have been approved.

GOI asked for comment from NABARD which has taken care of the suggestions submitted by only one Apex Association i.e. AIRRBEA and sent their comment on both the Reports to GOI in the last week of May 2009. GOI is to take final decision after a meeting with NABARD on 12-06-09 and then Banking Division will send the final draft to Ministry of Law for legal opinion. If there is no query from Ministry of Law, the same can be Notified by GOI.

RELAXATION OF AGE & QUALIFICATION IN CASE OF IN-SERVICE-CANDIDATES WHILE DIRECTLY RECRUITING CLERICAL AND SCALE-I CADRE HAVE EMPHATICALLY BEEN TAKEN UP BY AIRRBEA. Units are requested to take up the issue with the local management with all seriousness.

TRANSFER POLICY

In the Transfer Policy as submitted by AIRRBEA in line with the Bipartite Settlement for Workman, it was decided that Units & AIRRBEA will further suggest that woman staff, handicapped staff and two principal office bearers of the Association should be posted at the place of their respective choice.

CORE BANKING SOLUTION

It has been reiterated that AIRRBEA would conduct campaign and move the authority to go by uniform national rural software. AIRRBEA will oppose outsourcing and appointment of “Business Correspondent” etc.

NEXT TRIENNIAL CONFERENCE OF AIRRBEA

The Working Committee decided that next Triennial Conference of AIRRBEA would be held in the State of Rajasthan as proposed by Rajasthan State Federation on any suitable date in the month of February 2010, the Working Committee also decided to fix the delegation fee at Rs.400/- per delegate/observer including CC member.

It also decided to send the existing Constitution of AIRRBEA to all State Federations with a request to send their comments/proposed amendment etc. in consultation with the available CC members of the respective State to the Central Office , AIRRBEA by 15^th July 2009. The State Federation will take care of the notes supplied by Central Office in the meeting of the Working Committee in this regard. Such note has been sent to the State Secretaries who could not attend this meeting. Such views on the proposed amendment would be reviewed by a committee with following persons and views of such committee will be placed before the Central Committee meeting for final approval with modification, if any.

Committee to consider the views of State Federations

1. President , AIRRBEA 2. G.S.,AIRRBEA

3 & 4. Both the Secretaries AIRRBEA

5. Organizing Secretary, AIRRBEA

6. Sri C. Rajivan, Vice President, AIRRBEA

PERFORMANCE INCENTIVE/SOCIAL WELFARE SCHEMES FOR RRB STAFF

It was decided that AIRRBEA will not support performance incentive for any individual but may endorse if the incentives are given branch staff as a whole. AIRRBEA will rather create pressure and encourage different staff welfare schemes in the respective RRB to be extended to all the staff members. Some examples are given below.

1) Syndicate Bank has allowed “Annual Medical Checkup” for the staff of the RRBs sponsored by them

2) Tripura Gramin Bank has already extended the benefit of “Mediclaim Insurance Policy” for all the staff subject to maximum of Rs. 50,000.00 being the difference of hospitalization cost and payment made by RRB as per norms.

3) Many RRBs have covered the lives of RRB staff by “Group Insurance”, “Accident Benefit policy” etc and covered the staff H.B. Loan, gratuity of the RRB staff through Insurance Scheme.

4) Some RRBs have allowed “Immediate relief on accident or death in cash” “Award after 25 years of Job in the RRBS” “Canteen Facility at H.O./ R.O”. “News paper to all Staff” “Mobile phone to all staff” etc.

Kashi Gomti Samyut Gramin Bank has allowed recently the following schemes

Annual Health Check-up

Award to children of officers/employees

Incentive for excellence in education for the children of the officers/employees

Reimbursement of expenses incurred for pursuing AIB/CAIIB

Relief to physically challenged employees for purchase of crutches and other accessories

Presenting memento to retiring employees on superannuation

Staff Recreation Club/Activities

Latest important information:

Appointment of Actuary

NABARD has almost finalized the Appointment of “Actuary” for calculating the financial burden in case of extending parity of pension benefit to RRB staff.

2. Negotiating Forum

NABARD is at the final stage of declaring the Negotiating Forum as advised by Govt. of India and as indicated in our earlier circular.

3. Opening of Service Centre at State Capital by each RRB/Parking of govt. fund with RRB

NABARD has sent its letter on -----------requesting all the RRBs to send their proposals for setting up Service Centre at State Capital and details of difficulties being faced by each RRB for getting govt. fund.

Units must pursue this matter with respective management so that immediate action can be taken by GOI.

OUR REQUEST TO ALL UNITS

P.F. TRUST BOARD

Create all pressure and extend all cooperation to management for immediate creation of P.F. Trust Board to each RRB so that the P.F. benefit can be extended on the date of retirement or death

2. Exgratia Scheme in case of death

Create all pressure and extend all cooperation to management to ensure that nearest relative of each deceased personnel in the RRB must get “COMPASSIONATE APPOINTMENT” or Ex-gratia as per Govt. Circular within 3 months from the date of death. In such case the nearest relative of the deceased personnel will have the right to the Chairman of the respective RRB that he/she reserves the right to get the additional benefit, if any, as per scheme to be revised by GOI/IBA in the Banking Industry with retrospective effect.

3. Wages to Sweeper

Our Unit should ensure that each sweeper must get the minimum wages as per 9^th Bipartite settlement or as per respective State “Minimum Wages Act”

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Letter addressed to all Hon’ble Member of Parliament by AIRRBEA

Sub : Regional Rural Bank.

Respected Sir/ Madam

Regional Rural Banks( RRBs) popularly known as Gramin Bank, have come to stay as an inseparable part of the rural credit system, and we in the All India Regional Rural Bank Employees Association represent an overwhelming majority of RRB Employees and Officers of the country. We consider ourselves as in-separable partners in the process of Rural development and reiterate our whole hearted support and active participation to all the development programmes ( around 30) initiated by the GOI and State Governments for the rural people.

2. During their functioning for over 3 decades since 1975, RRBs have done a splendid job in disbursing credit to the poorest of the rural poor at their doorstep and negotiated through poverty alleviation schemes. In the current scenario also 86 RRBs with their 15200 branches in 596 districts out of 612 districts in the country have come out at the top in the central Government’s “National Financial Inclusion Scheme” and “ National Rural Employment Generation Programme “ . Performance of RRBs in mobilizing deposits in remote areas has also transpired to be very good and in fact , RRBs have become self sustaining financial institutions running with resources generating in their own areas. Even after discharging tremendous social responsibilities. RRBs as a system have earned Annual Net Profit of Rs. 700 crores in average for the last seven years or so. Considering all these financial parameters as well as the separate attitudinal ethos of RRB staff most suited for the rural people, Dr. Rangarajan Committee appointed by GOI have tipped the RRBs as major player in the field of rural credit and financial inclusion of the rural poor.

RESTRUCTURING OF REGIONAL RURAL BANKS

3. In order to make the system more viable and vibrant we have proposed reorganization of RRBs under a National Rural Bank of India. With an eye to stop rapid migration of rural deposits and to ensure proper autonomy for these institutions, we have demanded total de-linking of RRBs from their masters as well as competitors in the same field. A process of sponsor Bank wise amalgamation within same state has already started and total members of RRBs have been reduced from 196 to 86. But all the inherent difficulties and lack of functional autonomy will continue till the RRBs are de- linked from the sponsor Banks. The proposed NRBI, as recommended by Parliament standing Committees on Finance twice earlier, and discussed in the Parliament through a Private Members Bill, will ensure autonomy of the Banks as well as their unity of command and unity of approach so that these system could be molded in to the major instrument for rural development in the emerging scenario, which calls for massive investment in the rural sector.

OPENING OF MORE RURAL BRANCHES WITH ADEQUATE MANPOWER

4. In order to cope with the demand the credit starve rural poor in all effective way we propose for opening of at least 3000 new Branches of RRB with at least one Branch at each Sub division and Block Head Quarters clustered around by small branches at the Gram Panchayet level. Incidental, during about last two decades RRBs have stopped recruitment while the volume of business have increased ten to fifteen times and around 3000 ( three thousand) employees retired from service. With a view to catering to the need of the rural people and ensuring utilisation rural resources mobilized from the rural areas in employment generation and productive purposes recruitment of adequate member of staff is in dispensable. A need based man power policy suited for the special needs of the rural society and providing scope of career progression for the existing staff, languishing the same post for years together must be formulated and implemented.

PARITY OF PENSION BENEFITS FOR RRB STAFF

5. Pension and others retiral benefits are vital security needs of the staff, and RRB employees have so far been denied parity of such benefits even though they are eligible to get the same as per sponsor Bank rule in terms of an order of the National Industrial Tribunal and the Hon’ble Supreme Court of India. This social need can not be denied any further.

In view of the fact enumerated in the foregoing paragraphs we request you to kindly consider the issues in the light of their social perspective and take up the same with the appropriate authorities for immediate remedial measures.

With regards.

Yours faithfully

D.K. MUKHERJEE

GEN.SECRETARY

AIRRBEA DEMANDS MORE RURAL BRANCHES AND MANPOWER : All India Regional Rural Bank Employees Association, representing majority of the Officers & Employees working in 86 Regional Rural Banks of the country have started massive mass contact & campaign programme through Nayayatra/Jatha, Seminar/Trade Union Convention etc.

AIRRBEA has consistently been demanding for opening immediate 3000 (Three Thousand) rural branches to cover 6 lakh villages in the country with adequate manpower. Presently the RRBs have the highest number of bank branches & credit linked S.H.G. & highest number of beneficiaries under Govt. sponsored scheme in rural India than any commercial bank. The entire RRBs should be brought under the umbrella of National Rural Bank of India & de-linked from corporate cultures of 28 sponsor banks.

AIRRBEA demands for need based manpower to face the challenge of financial inclusion and asking for autonomy of the RRB for assessment of the manpower based on number of rural families being served & potentially of outreach and not on volume of business alone.

AIRRBEA takes the following issues to the peoples representative, Panchayet Pradhans, Self Help Groups, Kisan Sabha and all rural customers.

Demands:

i) National Rural Bank of India, De-link RRBs from Sponsor Banks.

ii) Review and relax the order on Thorat Committee report. Ensure need based Manpower No surplus in the existing workforce in each RRB.

iii) Promote in-service staff from all cadres and Recruit rural youths, then ensure branch expansion in each block by RRB.

iv) Parity of Pension Benefit to RRB Staff as per Supreme Court order.

Programmes:

a) Massive Demonstration/Dharna/Rally at H.O. of each RRB along with local other Trade Unions - By 28^th February, 2009.

b) Nayayatra/Jatha from Block Head Quarter to District Head Quarter along with S.H.G. Groups/Farmers Organisation/Panchayet Representatives etc. - any date to be decided by the respective unit - By 28^th February.

c) Nayayatra/Jatha from district head quarter to State Capital with Units Members/S.H.G. etc. any date to be decided by respective State Federation - By 28^th February, 2009.

d) Seminar/Trade Union Convention at district level by the unit and state level by the State Federation - By 28^th February, 2008.

If the demands are not settled by 28^th February, 2009 then Jathas/Nayayatras will come from all the states to Delhi and give a call for nationwide strike in March 2009.

Ongoing Programme for opening more Rural Bank branches & adequate manpower

1. All India Regional Rural Bank Employees Association, representing majority of both the officers & employees, has consistently been demanding since 1978 for Rural India for Rural Bank with National Rural Bank of India at the Apex level exclusively for rural & agricultural credit & answerable to Parliament.

Demands:- AIRRBEA, has taken massive mass campaign programmes upto 28^th February, 2009 for the formation of NRBI and de-linking from Sponsor Banks, opening of rural branch of each block head quarter with mobile branches for all the villages supported with adequate staff through recruitment & promotion without any bar. Parity of Pension is one of the main issues for the staff. RRBs manpower should be assessed in terms number of outreach & not in terms of only business. Practically no recruitment from the year 1990 in the RRBs. Pension benefit (so called) to RRB staff is a mockery.

2. No. of rural financing institutions: The present rural financial infrastructure comprises of a wide variety of formal, semi formal and informal service providers with distinctive cultures and characteristics. The number of organisation and agents is very substantial :- 33533 rural and semi urban branches of Commercial Banks, 14932 rural and semi urban branches of RRBs, 1.09 lakh primary cooperatives under about 350 State / District Central Co-operative Banks, about 1000 NGO MFIs and 20 MFIs registered as companies and nearly 3 million Self Help Groups.

3. Coverage by RRB: During the last three decades 196 RRB (now reduced to 86) have operated in around 588 districts out of 622 districts of the country through a net work of 14900 branches. Deposits so far mobilized by RRBs from remote villages have exceeded Rs.103300 crores and outstanding advances now stand around 65,400 crores, thus accounting for all India C.D. ratio of 65%. Over 90% of the borrowers of RRBs account for a loan portfolio of below Rs. 25000/- each. Total number of accounts negotiated by the RRBs has exceeded 9 crores. RRBs alone had a predominant share of about 40% of poverty alleviation schemes and organised / credit-linked around 1/3^rd of the countrys total number Self Help Groups.

4. Performance of RRB: Their performance in creating no frills accounts has also been rated as the best, and RRB staff are associated with about 30 types of rural development / service schemes (including N.R.E.G. Scheme) initiated by the Central Government and different State Governments. Recovery percentage of RRBs is satisfactory nearly 80%.

Even after discharging such tremendous social responsibilities RRBs as a system have earned annual Net Profits of Rs. 600 crores ( in average) for the last 7 years or so with over 1400 crores during the year ended March 2008 alone.

5. Migration of Rural deposit of RRB: Out of the total deposits of RRBs of the order of Rs.1,03,000 crores, a sum of around Rs.65,000 crores remained parked under the credit port folio, and around Rs.38,000 crores were shifted outside as Investment. Now, against this migration of Rs.38000 40000 crores from rural areas, RRBs have received as Refinance from NABARD a sum of around Rs.10000 crores and another Rs.1800 crores only from Sponsor Banks (as on 31.03.2008), thus making a hoax of monetizing the rural economy as originally envisaged.

6. Need for National Rural Bank: The most splendid feature of the AIRRBEA movement is its concern for the trade and the people alike. In order to make the RRBs more responsive to the needs of the rural people, to put a halt to rapid migrations of rural resources to urban areas and to utilize them in production and employment oriented activities in villages the AIRRBEA has been demanding since the last two decades for total de-linking of Sponsor Banks and restructuring the RRBs in to 20-21 state/zonal level Rural Banks under National Rural Bank Of India.

Totally de-linked from the Sponsor Banks and the uneven competition from their masters, the reorganized system as proposed is expected to go a long way in meeting the emerging needs of the rural economy. The Standing Committee of the Parliament on Finance endorsed the view in 1993 and again in 2003.

7. Challenge for Financial Inclusion: RRBs have proved beyond doubt their superiority in the rural banking arena with a unique blend of the social heart of the cooperatives and professional acumen of commercial Banks. They have rightly been accorded a pride of place in negotiating the challenges of total financial inclusion as well as augmenting agricultural production and employment generation.

RRB employees and officers, mostly sons of soil, have developed a close rapport and affinity to the masses of rural people, and this is what is exactly needed for implementation of rural development schemes in villages. Considering all these factors RRBs have been tipped as the natural leader in the field of financial inclusion under the National Financial Inclusion Scheme initiated by the GOI as per recommendation of Dr. Rangarajan Committee. Initial indications confirm that the trust reposed on them have not been misplaced, and RRB employees are destined to come out in flying colours with firm conviction and dedication.

8. Rural Branch expansion our demand: It has been suggested by us that all the RRBs in a state be amalgamated in to one State level Bank headquartered at the capital city of the State with link branches/administrative offices at every district and sub-divisional town. Since the block headquarter is looked upon as the developmenthub of the rural areas there shall be one branch attached to the Block, and clustered around by a few small /satellite branches to look after one or two Gram Panchayats. For this purpose around 5000 new branches of RRBs have to be opened at the earliest with particular emphasis on the grey areas like Orissa, Bihar, NE Region, UP, MP and Chattishgarh where financial exclusion is acute.

9. Present policy for consolidation our concern: Since May 2005 the GOI has taken up a process for consolidation through amalgamation of different RRBs in a particular State sponsored by the same Sponsor Bank, and already 156 RRBs have been so amalgamated in to 45 Banks, thus reducing the total number of RRBs to 86. It is strongly apprehended that the ongoing process will leave almost all the constraints and difficulties unattended to, and RRBs, bereft of their separate operational and attitudinal ethos, will be made in to clones of these Sponsor Banks. It is further apprehended that in line with the recommendations of the Narasimham Committee these Sponsor Bank-wise unified RRBs will be simply converted in to Rural Banking Subsidiaries of the big Commercial Banks. In their game plan to withdraw from the rural areas in a massive way and scuttle down the staff strength of Commercial Banks this new infrastructure of sponsor bank wise amalgamation may be harnessed by the Government according to their needs of the situation. Rural branches of Commercial Banks and their RRBs will be swapped and merged to reduce the number of Bank branches and the yawning gap in rural credit will be filled up by the newly conceived Banking Facilitators and Banking correspondents, MFIs and legalized money lenders as well as the recently declared systems of local agents and Post Offices. The entire road map of the GOI is fraught with grave dangers for the Banking fraternity and the rural people alike who have taken up the gauntlet against these evil designs to throw the masses back to the hands of Mahajans/Kulaks. Corporatisation and commercialization of agriculture coupled with rapid invasion of private capital into villages also spells dangers for our agriculture, agro research and the entire rural economy.

10. S.H.G. Role of RRB: SHGs have been accepted as the most effective organ for financial inclusion with particular focus on empowerment of women. Since the SHG movement has come to stay and RRBs with their separate attitudinal ethos have been playing a sterling role in organisation and credit linkage of SHGs, opening of small new branches at their doorstep seems to be an urgent necessity. These flourishing SHGs, led by their own representatives and local support-staff engaged or to be engaged by Panchayats have to be nursed and groomed up sincerely so that in the days to come they are developed into good and mutually dependent business partners. The main draw-back of the movement is that due to rapid mushrooming of SHGs the vital aspects of identifying economic activities and cluster-based approach have been thrown into the winds. Furthermore, the necessity for proper planning including forward and backward linkages has not been duly paid heed to. These impediments and deficiencies have to be got rid of with concerted effort of all concerned.

Now, as the catalyst also in the upcoming SHG movement the R.R.B.s have to develop the groups, help them pick up the right economic activities, generate the credit needs among them and finally integrate ourselves in their struggle for survival and progress, thus creating our own business opportunities as well.

Some informations about RRB

Ø RRB as a whole have the largest branch network and rural branches in the country.

Ø Excepting S.B.I., only RRB has their branches in almost all the districts (588 out of 622) of the country.

Ø RRBs as a whole have the highest number of S.H.G. and no frill A/c than any other bank in the country.

Ø RRBs have the highest number of beneficiaries under Govt. sponsored schemes meant for RRBs too in any district.

Ø RRB branches mostly have an average of 2000 (two thousand) A/cs (Govt. Schemes in addition to normal business A/c for deposit & advance) without any income to the bank and any increase in per employee/branch business.

Ø Normally, no Govt. fund for sponsored scheme in the rural areas is parked with RRB.

Ø More than 1000 (one thousand) rural branches of the RRBs are having only one staff excluding Messenger (i.e. either one clerk or one officer). More than 5000 (five thousand) rural branches of the RRBs are having only two staff i.e. one clerk and one officer.

Ø No recruitment in almost all the RRBs after year 1990 though per employee business has been increased by 10 (ten) times & nearly 2000 (two thousand) staff members have retired by this time.

Ø As per new norms for manpower, even the best 10 (ten) RRBs considering all parameters are to show so called surplus. Manpower must be left to Board having 5 (five) senior bankers out of 9 (nine) members. Manpower should be based on number of beneficiaries/A/c, potentials & hazards of the respective RRB. There was Field Officer/Field Supervisor for field job. Now the posts are abolished in the RRBs. Messenger can do the job for financial inclusion but for N.P.A. management, field staff is required.

Ø Nearly 600 (six hundred) new branches have been opened in the last one year & a half but with insignificant recruitment, that too with major attrition in the same year.

Ø No promotion from 70% of the workmen even after three decades of dedicated service in the trying condition.

Ø To continue & enhance both quality & quantity of service to the illiterate, rural & weaker sector, number of outreach should be the criteria for manpower in RRB. Govt. approved manpower for the RRBs may be guideline only.

Ø For effective Financial Inclusion & No frill A/c/K.C.C. /G.C.C. to the real needy sector appropriate manpower & parity of superannuation benefits may please be ensured in the RRBs. Out of 86 RRBs, 78 are running with profit. So, capital support to the extent of accumulated loss may kindly be ensured.