
Following the recent wage revision for commercial bank employees, the All India Bank Employees’ Association (AIBEA) is now advocating for the Finance Ministry to announce a similar wage revision for Regional Rural Banks (RRBs) staff.

According to C H Venkatachalam, General Secretary of AIBEA, the association is pressing for the inclusion of RRBs in the industry-level wage settlement, highlighting that RRB staff perform similar duties to those in commercial banks.
AIBEA has reached out to Finance Minister Nirmala Sitharaman, urging her attention to the matter of RRB wage revision. Venkatachalam mentioned that they have also requested the Finance Minister to advise the Department of Financial Services (DFS) to issue the necessary notification for the revision.
The most recent Bipartite settlement concerning bank employees was signed on March 8 of this year.
The last revision for RRB staff and officers’ wages occurred in April 2021, following the signing of the 11th Bipartite Settlement between IBA and bank employees in November 2020.
Currently, RRBs are not covered by the Bipartite settlement under the Indian Banks Association (IBA).
In 1975, when RRBs were established, their employees were granted lower wages compared to bank employees. This issue was taken to the Supreme Court, which ruled that wage parity must be maintained between commercial bank employees and RRB staff.
As a result, after each Bipartite Settlement, the government or the Department of Financial Services issues a notification to extend the same wage increase to RRBs.
India currently has around 43 RRBs (as of 2021), regulated by the Reserve Bank of India (RBI).
The RRB system began in 1975, conceptualized as hybrid micro-banking institutions aiming to combine the community-oriented approach of cooperatives with the financial expertise of commercial banks. Their mission is to cater to the credit needs of small and marginal farmers, agricultural laborers, and socio-economically weaker sections for the development of agriculture, trade, commerce, industry, and other productive activities.
The number of RRBs initially rose to 196, remaining stable between 1987 and 2005. However, since 2005, there has been a gradual decline in their numbers, with successive governments endorsing consolidation efforts.
In 2022, the government considered the possibility of establishing one large RRB in each State, following further consolidation efforts. Currently, the Centre holds a 50 percent stake in each RRB, with the Sponsor Bank holding 35 percent and the remaining 15 percent owned by the State government.