The Ministry of Finance has raised concerns that many Regional Rural Banks (RRBs) are not following government rules and guidelines properly. In a letter to all RRB Chairpersons, the government has pointed out that some banks are ignoring important instructions, which is causing problems in their functioning. The ministry has now ordered all RRBs to strictly follow government rules in the same way across all banks to avoid confusion and unfair practices.
The government has noticed that several RRBs are not fully following the instructions issued to them. This has led to indiscipline in the banking system, where different banks apply the rules in different ways. Because of this, there is no uniformity in how the policies are followed, which creates confusion for both employees and customers.
Another issue is that some RRBs’ failure to follow the rules has led to unnecessary court cases. These legal disputes could have been avoided if all banks had properly implemented the government’s directions. Such legal matters waste time, increase expenses, and create delays in banking operations.
The government has also observed that employees in different RRBs are unhappy due to unfair treatment. Since rules are not followed in the same way everywhere, some employees face difficulties that others do not. This has caused widespread complaints and dissatisfaction among RRB staff, which can affect the smooth working of the banks.
To solve these problems, the government has ordered all RRBs to strictly follow the guidelines and policies without making any changes. The letter clearly states that every bank must apply the rules in the same way to maintain fairness. If any bank does not understand a rule properly, it must contact the Department of Financial Services (DFS) for clarification instead of making its own decisions.
The Ministry of Finance has asked all RRBs to confirm that they have received the letter within a week. Copies of this notice have also been sent to NABARD (National Bank for Agriculture and Rural Development) and the heads of sponsor banks of RRBs to ensure better monitoring.
With this warning, the government has made it clear that RRBs must follow rules properly to avoid legal issues, employee complaints, and mismanagement. If banks continue to ignore government instructions, further action may be taken against them.
