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AIRRBEA recommends change of Sponsor Banks in States for Amalgamation of RRBs


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The Department of Financial Services (DFS) has released a roadmap for the Phase IV amalgamation of Regional Rural Banks (RRBs). The DFS has released a documents mentioning names of Sponsor Banks in various states. Click here to read that document in detail. The proposed amalgamation of Grameen Banks is as follows:

AIRRBEA recommends change of Sponsor Banks in States for Amalgamation of RRBs
AIRRBEA recommends change of Sponsor Banks in States for Amalgamation of RRBs

But the All India Regional Rural Bank Employees Association (AIRRBEA) has now recommended some changes in this proposed amalgamation. AIRRBEA has recommended changes in Sponsor Banks for some states.

StateCurrent RRBsProposed Sponsor BankAIRRBEA’s Recommendation
Jammu & KashmirJammu & Kashmir Grameen Bank, Ellaquai Dehati BankJ&K BankState Bank of India
MaharashtraMaharashtra Gramin Bank, Vidarbha Konkan Gramin BankBank of MaharashtraBank of India
OdishaOdisha Gramya Bank, Utkal Grameen BankIndian Overseas BankState Bank of India
PuducherryPuduvai Bharathiar Grama BankIndian BankMerge with Tamil Nadu Grama Bank

➡️ Also Read: RRB Banks Merger List Ready, Govt seeks opinions from Sponsor Banks

Key Concerns Raised by AIRRBEA

  1. Jammu & Kashmir: AIRRBEA expressed concerns over the proposal to have J&K Bank as the sponsor. They argue that J&K Bank, being a smaller regional player, may lack the capacity to support the RRB’s rural mandate effectively. Instead, AIRRBEA advocates for the State Bank of India, citing its extensive rural banking expertise and nationwide reach.
  2. Maharashtra: The current plan proposes Bank of Maharashtra as the sponsor; however, AIRRBEA recommends Bank of India, which has a broader network and can potentially offer more robust support for rural banking needs.
  3. Odisha: AIRRBEA opposes Indian Overseas Bank as the sponsor, citing past management issues and employee grievances. Instead, they recommend State Bank of India, which has substantial experience in managing RRBs and rural-centric operations.
  4. Puducherry: In Puducherry, AIRRBEA suggests merging Puduvai Bharathiar Grama Bank with Tamil Nadu Grama Bank, as both are currently sponsored by Indian Bank. Such a merger could improve operational efficiency, aligning two regions with similar cultural and linguistic backgrounds.
AIRRBEA recommends change of Sponsor Banks in States for Amalgamation of RRBs
AIRRBEA recommends change of Sponsor Banks in States for Amalgamation of RRBs
AIRRBEA recommends change of Sponsor Banks in States for Amalgamation of RRBs

➡️ Also Read: RRB Banks Merger List Ready, Govt seeks opinions from Sponsor Banks

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