205-a-5 subordinate legislation (english).p65 - rajya sabha

PARLIAMENT OF INDIARAJYA SABHA

COMMITTEE ON SUBORDINATE LEGISLATION

TWO HUNDRED AND FIFTH REPORT

Rajya Sabha Secretariat, New Delhi

May, 2013/Vaisakha, 1935 (Saka)

On

Regional Rural Banks (Appointment and Promotion of

Officers and Employees) Rules, 2010

(Presented on 3rd May, )2013

REPORT NO.

205

Hindi version of this publication is also available

PARLIAMENT OF INDIA

RAJYA SABHA

COMMITTEE ON SUBORDINATE LEGISLATION

TWO HUNDRED AND FIFTH REPORT

OnRegional Rural Banks (Appointment and promotion of

Officers and Employees) Rules, 2010

(Presented on 3rd May, 2013)

Rajya Sabha Secretariat, New DelhiMay, 2013/Vaisakha, 1935 (Saka)

CONTENTS

PAGES

1. COMPOSITION OF THE COMMITTEE............................................ (i)

2. INTRODUCTION..................................................................... (iii)

3. REPORT ON THE REGIONAL RURAL BANKS (APPOINTMENT AND

PROMOTION OF OFFICERS AND EMPLOYEES) RULES, 2010............. 1-16

4. SUMMARY OF RECOMMENDATIONS/OBSERVATIONS........................ 17-21

5. ANNEXURE .......................................................................... 22-129

6. MINUTES ............................................................................ 130-132

LIST OF MEMBERS OF THE COMMITTEE ONSUBORDINATE LEGISLATION, RAJYA SABHA

(CONSTITUTED ON THE 29th SEPTEMBER, 2010)

1. Shrimati Maya Singh ------ Chairperson2. Shri Jesudasu Seelam3. Shri Vijay Jawaharlal Darda4. Shri P. Kannan5. Shri Prakash Javadekar6. Shri Narendra Kashyap7. Dr. K.P. Ramalingam8. Dr. Janardhan Waghmare9. Dr. Bharatkumar Raut

10. Shri Ahmad Saeed Malihabadi11. Shri Shantaram Naik12. Shri Bhupender Yadav

*13. Shri Ali Anwar Ansari*14. Shri D. Bandyopadhyay*15. Shri Rabinarayan Mohapatra

SECRETARIAT

1. Shri N .K. Singh, Joint Secretary2. Shri Mahesh Tiwari, Joint Director3. Shri R.S. Rawat, Deputy Director4. Shri Rakesh Anand, Deputy Director5. Shri R.P. Shukla, Assistant Director6. Shrimati Monica Baa, Assistant Director

(i)

*Nominated w.e.f. 9th May, 2012.

INTRODUCTION

I, the Chairperson of the Committee on Subordinate Legislation, havingbeen authorized by the Committee, do hereby present on its behalf, this TwoHundred and Fifth Report of the Committee.

2. The Committee examined the matters that came up while scrutinizingthe Regional Rural Banks (Appointment and Promotion of Officers andEmployees) Rules, 2010 and issues relating to them along with the commentsreceived from the Government.

3. The observations and recommendations of the Committee are containedin the Report.

4. The Committee considered and adopted the draft Report in its meetingheld on the 2nd May, 2013.

MAYA SINGHChairperson,

Committee on Subordinate Legislation,Rajya Sabha.

NEW DELHI;May 3rd, 2013

(iii)

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REPORT

The Regional Rural Banks (Appointment and Promotion ofOfficers and Employees) Rules, 2010

The Regional Rural Banks were initially established under the provisionsof the Ordinance promulgated way back on 26th September, 1975 andthereafter under the provisions of the Regional Rural Banks Act, 1976 with aview to develop the rural economy and to create an alternative channel to the‘cooperative credit structure’. The RRBs are jointly owned by the Governmentof India, the concerned State Government and Sponsor Banks with issuedcapital which is shared by them in proportion of 50%, 15% and 35%respectively. The area of operations of RRBs is as specified in the notificationissued by the Central Government in a State or a Union Territory.

2. In 2007, a Committee was set up under the Chairmanship of Dr. Y.S.P.Thorat, the then Chairman of NABARD to examine the manpower norms inRRBs and to have a standard method of manpower assessment and planning.The said Committee examined the related issues which had a bearing ondevelopment of appropriate human resources in RRBs vis-à-vis the ModelRRB Officers and Employees Service Regulations, 2000 and RRBs(Appointment and Promotion of Officers and other Employees) Rules, 1998.The Committee inter-alia recommended that there was need to revisit theModel RRB Officers and Employees Service Regulations, 2000 in the changedscenario especially, after the restructuring of RRBs by way of amalgamation.In view of that, a Committee under the Chairmanship of Shri Amresh Kumar,Executive Director, NABARD was constituted for a comprehensive review ofthe RRB (Appointment and Promotion of Officers and other Employees) Rules,1998. This Committee submitted its report in February, 2009 and afterconsultations with NABARD and Ministry of Law and Justice the revisedRegional Rural Banks (Appointment and Promotion of Officers and Employees)Rules, 2010 were notified on 13th July, 2010 (Annexure I).

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3. The Committee on Subordinate Legislation had earlier taken up for detailedexamination the model Regional Rural Banks (Officers and Employees) ServiceRegulations, 2000. This model Regulations was adopted and notified by allRRBs. Thereafter, the Committee also had discussions on the Regulationswith various RRBs and their sponsor banks. The Ministry in their latest statusnote furnished on the subject stated that the Ministry had also framed therevised model Regional Rural Banks (Officers and Employees) ServiceRegulations, 2010 after consultation with NABARD, Ministry of Law andJustice and approval of the Finance Minister. This revised model Regulationswas circulated to all RRBs through NABARD and the same are required to benotified and adopted by RRBs in consultation with their respective sponsorbanks after approval of their Board. In view of the fact that the model RegionalRural Banks (Officers and Employees) Service Regulations, 2000 was nolonger in force and that RRBs had notified the new RRB (Officers andEmployees) Service Regulations, 2010, the Committee decided not to pursuethe model Regional Rural Banks (Officers and Employees) Service Regulations,2000 further.

4. Keeping in view the importance of Regional Rural Banks (Appointmentand Promotion of Officers and Employees) Rules, 2010 the Committee decidedto take them up for detailed examination. The Committee held wide rangingdiscussions with the Banks like Andhra Bank, State Bank of Hyderabad, IndianBank, Indian Overseas Bank, Canara Bank, Syndicate Bank, Vijaya Bank,Corporation Bank, State Bank of Mysore, Dena Bank, Bank of India, CentralBank of India, Bank of Baroda, Union Bank of India, State Bank of India, Bankof Maharashtra, Allahabad Bank, United Cooperative Bank, United Bank ofIndia, Punjab National Bank and ICICI Bank along with the representatives ofthe Regional Rural Banks sponsored by them. The Committee also helddiscussions with concerned Associations of Employees of Regional Rural Banksat different places to know the problems being faced by them. Overall theCommittee held 15 meetings on the said rules during its study visits to differentplaces.

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5. The said rules were examined and a detailed questionnaire was forwardedto the Department of Financial Services (Ministry of Finance). The Departmentof Financial Services, Ministry of Finance furnished their comments/clarifications on the points raised in the questionnaire (Annexure II). Thepoints raised by the Committee and the comments of the Ministry are containedin the succeeding paragraphs.

6. The Committee wanted to know the reasons that necessitated the framingof RRBs (Appointment and Promotion of Officers and Employees) Rules,2010 in super session of RRB appointment and Promotion of officers’ andEmployee’ Rules, 1998 and what were the main points of difference betweenthe old rules 1998 and new rules, 2010.

In response it was informed that on the amalgamation of Regional RuralBank (RRBs) business level and area of operation of amalgamated RRBs hadincreased substantially. A Committee under the Chairmanship of Dr. Y.S.P.Thorat was constituted by Government of India to formulate “ComprehensiveHuman Resource Policy for RRBs” which inter-alia include categorization ofRRBs/ branches, staff pattern, at Head Office/Controlling Offices/Branch level,recruitment, promotion, etc. The Committee inter-alia recommended (i)creation of posts at Scale IV and V level for RRB officer to provide promotionalavenues with a view to shoulder the higher responsibilities (ii) Directrecruitment upto scale III (iii) Fast Track Promotion (iv) outsourcing of non-core activities. All these factors necessitiate framing the Regional Rural Banks(Appointment and Promotion) Rules, 2010.

7. Information was sought on the fact that the RRB Act was passed in1976 and the RRB (Appointment and Promotion of Officers and Employees)Rules were framed in 1998. Was any other rules in place before the rules wereframed in the year 1998 and if, no, why was there a delay of 22 years in theframing of the rules?

The Ministry stated that prior to 1988 the recruitments in RRBs werecarried out as per the guidelines of the Government. The Appointment and

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Promotion Rules were framed in 1998. These were revised in 1998 as theposts in RRBs were designated on the basis of the recommendations of theEquation Committee. The RRBs (Appointment and Promotion of Officers andEmployees) Rules, 2010 have been framed to provide for recruitment in scaleIV and V posts and also re-designation of the Group ‘B’ and ‘C’ posts.

8. The Committee sought information on the differences in the appointmentprocedure of officers and employees in nationalize banks and RRBs in termsof qualification, experience and tests, etc. In response to which it was informedthat whereas the appointment of officers and employees in RRBs was governedby rules and regulations framed by Government of India in consultation withNational Bank for Agriculture and Rural Development and Sponsor Banksfrom time to time under section 29 (1) and (2) (ba) of RRB Act, 1976,appointments and promotion of staff of nationalized banks are governed bythe rules and regulations of the respective banks. However, overall the broadfeatures were more or less similar in both cases.

9. The Committee raised the issue that in the Third Schedule to the Rules,it is provided that if none of the members of the Committee belongs to SC/ST,the Board may nominate an officer of the suitable position belonging to SC/STas an additional member. In this reference the word ‘suitable position’ seemsto be vague and whether it would not be better to specify some rank, seniorityor qualifications for the same. In clarification the Ministry stated that theRRBs are of different size and availability of SC/ST member in a particulargrade may cause problem. Hence a broad provision has been made.

10. It was noted that Rule 9 provides that the written examination for directrecruitment of officers and employees other than those of Group ‘C’ employeesshall be entrusted to the Institute of Banking Personnel Selection (IBPS) orany agency approved by the Sponsor Bank. In this reference information wassought on the reasons for allowing the Sponsor Bank to get direct recruitmentdone by an agency other than IBPS and whether it would not have been betterto entrust the work of conducting the examination to IBPS only so that thereis uniformity in the recruitment.

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The Ministry informed that the recruitments in RRBs is at a much lowerscale as compared to the Public Sector Banks. In order to provide the desiredflexibility for recruitment in RRBs the provision of recruitment though Instituteof Banking Personnel Selection (IBPS) or any other agency approved by theSponsor Bank has been made.

11. The Committee wanted to know the number of districts in the countrycovered by the RRBs so far and steps being taken by the Ministry and NABARDto extend the RRB network to all the rural districts in the country along withthe difficulties faced by them in this regard.

The Ministry informed that 619 districts have been covered by the RRBsas on 31 March, 2010. Recently Reserve Bank of India has also deregulated/liberalized the licensing policy for RRBs to open their branches in category IIIto VI centers without prior permission of RBI subject to fulfilling the followingconditions - (i) CRAR of at least 9%, (ii) Net NPA less than 5%, (iii) Nodefault in CRR/SLR for the last year; (iv) Net profit in the last financial year.

It was also informed that Government of lndia had given target foropening 2000 new RRB branches in uncovered blocks/ districts by March,2011. Resultantly, RRBs have opened 955 branches during the period fromMarch, 2007 to March, 2010. However the opening of the branches’ alsodepends upon the financial viability of it.

12. It was observed that the Second Schedule to the Rules provides a list ofthe regional rural banks in the country and their sponsor banks. All the RRBsare sponsored by nationalized banks and no private bank is involved in thesponsoring of rural bank. The Committee, accordingly desired to know thereasons behind this and whether it was not desirable to involve the privatebanks also in the RRB network. In response it was clarified that there werealready two RRBs sponsored by private sector banks, viz., Jammu RuralBank (Jammu & Kashmir Bank Ltd.), Mewar Aaanchalik Gramin Bank (takenover by the ICICI Bank Ltd., from Bank of Rajasthan Ltd.) and one RRB, viz.Kshetriya Kisaan Gramin Bank sponsored by UP Cooperative Bank Ltd.

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13. It was felt that the scope of promotion in RRBs was very limited ascompared to the sponsor banks. Information was sought on the reasons forlesser scope of promotion in RRBs as compared to the sponsor banks. Inclarification, the Ministry informed that as per the RRBs (Appointment andPromotion of Officers and Employees) Rules, 2010, officers of RRBs cannow be promoted upto scale V and this in turn has increased the promotionalavenues for other categories of staff of RRBs.

14. Details were sought on the main recommendations of the Committeeconstituted under the Chairmanship of Shri Amaresh Kumar, ExecutiveDirector, NABARD for comprehensive review of the model RRB Officersand Employees Service Regulations, 2000 and the RRB (Appointment andPromotion of Officers and Employees) Rules, 1998. Information was alsosought on how far the Ministry of Finance/NABARD had accepted therecommendations of the Committee and what were the amendments carriedout in the new rules of 2010 as a result of that acceptance?

The Ministry informed that the recommendations made by Shri AmareshKumar were broadly accepted by the Government. A few of the importantrecommendations made regarding the RRBs Officers and Employees ServiceRegulation 2000 were as follows i.e. (i) Change in definition of competentAuthority and decentralisation in respect of delegation of powers; (ii) Changein designation of group B&C staff (Office Assistant/Office Attendant);(iii) Creation of additional scale/grades-IV&V; (iv) Increase in duration ofExtraordinary Leave and Sick Leave; (v) Increase in percentage of promotionfrom Group “C” to “B” posts from existing 10% to 25%; (vi) Recruitment(Scale II & III- direct recruitment of specialist 25% and 10% respectively);and (vii) Introduction of fast track promotion upto the level of scale III.

15. The Committee sought to know the status of amalgamation andreorganization of RRBs and the reasons behind the need for amalgamation ofRRBs.

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It was informed that as on date, there were 46 amalgamated RRBs and36 stand alone RRBs in the country. In order to reap the benefits of a largearea of operation, enhance credit exposure limits and to undertake diversebanking activities, the Government initiated a process of structural consolidationof RRBs by the amalgamation of RRBs sponsored by the same Bank within aState.

16. Details were also sought as to what extent the power to make rules/regulations under section 29 and 30 of the Regional Rural Banks Act, 1976had been carried out as also the details of all such rules/regulations framedunder the Act along with their date of laying on the Table of both the Housesof Parliament.

In response the Ministry informed that under section 29 and 30 of RRBAct, 1976, the Government can frame rules and regulations in consultationwith NABARD and Sponsor Banks and accordingly, RRBs (Appointment andPromotion of Officers and Employees) Rules were issued first in 1988. Thesame were revised in 1998 and thereafter in 2010. Similarly, RRB Officersand Employees Service Regulations were first issued in 1980 and modified in2000 and further amended in 2010. RRBs (Appointment and Promotion ofOfficers and Employees) Rules, 2010 were laid on the Table of Lok Sabha on6.8.2010 and Rajya Sabha on 10.8.2010.

17. The Ministry also brought before the Committee the important featuresof the Committee set up under the Chairmanship of Dr. K.C. Chakrabarty,Deputy Governor, RBI to analyze the financial position of RRBs which wereas follows;

40 RRBs to be recapitulated out of 82 RRB

Total amount of recap assessed is Rs. 2,200.00 crore to be releasedin two instalments, i.e., Rs. 1,337.50 crore in 2010-11 andRs.862.50 crore in 2011-12

An additional amount of Rs.700 crore may be kept as contingenciesfor RRBs of NE and NER region

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Increase in authorized capital of RRB from Rs 5.00 crore toRs. 500.00 crore

RRBs with a networth of Rs.100 crore or more as on March,2009 may be permitted to pay dividend from 1 April, 2013onwards

RBI may prescribe ‘fit and proper’ criteria for the Chairmen ofRRBs in respect of appointment and salary structure

The Committee was further informed that the Report of the Committeewas being processed.

18. The Committee also taken up the said Rules for discussion with therepresentatives of Andhra Bank and State Bank of Hyderabad at Hyderabadand with Indian Bank and Indian Overseas Bank at Chennai along with therepresentatives of the Regional Rural Banks sponsored by them during itsstudy visit to Hyderabad and Chennai in December, 2010. The relevant studynotes are enclosed (Annexure III & IV). During the course of the saiddiscussions the Committee was made aware of the fact that that after comingin force of the said rules, the promotion avenues of the RRB officers hadincreased. The efforts were also being made to ensure time bound promotions.As for the manpower shortages it was informed that recruitments are anongoing process and efforts are being made to ensure adequate staffing. Theguidelines issued by NABARD regarding recruitment are being adhered to andcorrective measures taken where ever need be. The Committee, however,expressed its concerns about the promotion avenues available to theofficers and employees of the Regional Rural Banks as campared to theEmployees working in the Sponsor Banks. The Committee thereforerecommends that adequate provisions for time bound promotions shouldbe provided in the Rules itself. This would help ensure that attrition of theemployees joining these RRBs is reduced and also help to improve theirmotivation.

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19. The Committee also discussed the said Rules with the representativesof Regional Rural Banks and their sponsor banks i.e. Canara Bank, SyndicateBank, Vijaya Bank, Corporation Bank and State Bank of Mysore during itsstudy visit to Bengaluru, Cochin and Munnar in June, 2012. During the courseof the said discussions the Committee was informed that the employeesworking in RRBs had no proper promotion opportunities and that some peopleretire in the same post in which they join. There was also the problem of lackof manpower in RRBs and that many branches have one manager and oneclerk. Payment of Mahatma Gandhi National Rural Employment GuaranteeScheme wages and issue of Kisan Credit Cards (KCC) tend to strain theresources of RRBs further. Regarding the pay and allowances, employees ofRRBs have Dearness Allowance and basic pay at par with sponsor banks butthere is no pension scheme for RRB employees. There was high attrition rateand the youths were not attracted to RRBs. Relevant study notes are enclosedat Annexure V, VI & VII. The Committee took note of the issues raisedand recommends that the Ministry should look into the feasibility ofextending pensionary benefits as provided to the staff of the sponsorbanks to the officers and employees of the RRBs also. This would help toattract and retain qualified staff in the long run.

20. The Committee also took note of the fact that the RRBs were created toattract local youth to join and serve the RRB branches located near their placeof residence. However, the Committee noted that recently changes had beenmade in the minimum educational qualifications needed for joining the RRBs.The Committee therefore was of the opinion that the Ministry shouldlook into the possibility of relaxing the required educational qualificationsfor candidates aspiring to join the RRBs. This would help the local youthto join and serve the RRBs. This is particularly relevant keeping inview the fact that RRBs tend to operate in rural and backward areas ofthe States and the local youth of such areas tend to suffer from lack ofgood educational institutes in these areas. As the local youths tend tobe well conversant with the local people and their surrounding they can

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be instrumental to develop a good network for RRBs in rural andbackward areas of the States.

21. Thereafter, the Committee took up for discussion the said Rules duringits study visit to Mumbai & Goa in September and October, 2011 respectively.The Committee held discussions with the representatives of different RegionalRural Banks and also their sponsor banks i.e. Dena Bank, Bank of India,Central Bank of India, Bank of Baroda, Union Bank of India, State Bank ofIndia and Bank of Maharashtra. The relevant study notes are placed at AnnexureVIII, IX & X. During the course of the discussions the Committee was madeaware of the fact that as a result of the amalgamation the immediate challengefaced by the concerned Banks was of cultural and emotional integration of theerstwhile units into the new units. However, the benefits of amalgamation farout-weigh the problems and it in the longer run has resulted in better utilizationof resources and more profits for these entities. Today these RRBs had becomean important platform for the sponsor banks for meeting these priority sectortargets as they have a better reach and network in the rural and backwardareas and are also better placed to dispense the loans and policies in theseareas. The local people tend to have a sense of attachment with these entitieswhich translated into healthy repayments and low NPAs for the RRBs. TheCommittee also took note of the fact that recapitalization of the RRBs whichwas critical to their revival was still not complete as the contributions fromthe parties involved was not being received. The Committee thereforerecommends that the Ministry of Finance should take up the matterwith the concerned State Governments so as to ensure that share to becontributed by them is released by the States. This is essential for therevival of the RRBs and for their effective functioning.

22. The Committee also noted that RRBs were a crucial support for thesuccess of the Self Help Groups (SHG) working in the rural areas and moreparticularly for such groups owned and operated by women. These SHGsowned and operated by women not only depend on the RRBs for financial

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support but also for business development and marketing of their products.Keeping in view the fact that SHGs have being playing a key role in theeconomic empowerment of women in rural areas the Committee was ofthe opinion that Ministry and the sponsor banks should look into thefeasibility of setting up all women RRBs in some districts and morespecifically in those regions were number of women managed SHGs arequite active. This would help these SHGs integrate more effectivelywith the RRBs and also be source of motivation for women to set upSHGs.

23. These Rules were also taken up for consideration by the Committeeduring its study visit to Kolkata, Port Blair and Chennai during February, 2012.The Committee held discussions with the representatives of Regional RuralBanks, the concerned sponsor banks i.e. Allahabad Bank, United CooperativeBank and United Bank of India. The relevant study notes are enclosed atAnnexure XI & XII. During the course of these discussions it was noted thatthe tenure of Chairman of the RRBs was not fixed and this leads to theiruntimely removal. This affected the overall morale of the organization. Howeverin view of the sponsor banks Chairman of the RRBs not usually removedbefore their tenure is over. The Committee however was of the opinionthat it would be more appropriate if the tenure of the Chairman of theRRBs was duly ensured by the rules. Also the conditions in which theChairman could be removed should be specified in the rules itself. Thiswould help bring sufficient flexibility in the removal of the Chairmanwhile ensuring a certain amount of stability of tenure. It thereforerecommends that the Ministry accordingly study the rules to incorporatethe views of the Committee. The Committee was also of the view thatthe Sponsor Banks should appoint at least General Manager rank Officeras Chairman of the Rural Bank.

24. The Committee discussed the said Rules with the representatives ofPunjab National Bank and the RRBs sponsored by them at Dharmshala during

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its visit to Dharmshala and Srinagar in June, 2012 (study note enclosed atAnnexure XIII). Based upon these discussions the Committee was of theview that the Rules needed to be made more employee friendly to ensureproper motivation and morale of the employees working in these RRBs. Basedon its interactions with employees of different RRBs the Committeedecided to recommend the following:

(i) The minimum period of service in a particular Scale ofpromotion may be introduced to 4 years from 5-6 years uptoScale-III to bring younger and energetic work force at higherlevels;

(ii) At least 25% of the candidates may be kept in the waitinglist on promotion;

(iii) Minimum period of preceding 4 years may be taken intoaccount for looking into adverse remarks before promotion;

(iv) the sealed cover process should be co-terminus with thecommencement of the next promotion process; and

(v) The minimum qualifying marks in interview should be 50%.However, for candidates belonging to SC or ST categories, itshould be 45%.

25. The Rules were also discussed with Bank of Baroda and ICICI Bankalong with their RRBs at Udaipur and with State Bank of Bikaner & Jaipur atJaisalmer by the Committee during its study tour to Udaipur, Jodhpur & Bikanerin February, 2013. The relevant study notes are enclosed at Annexure XIV.The Committee took note of the experiences of ICICI Bank in managing aRRB. The Committee appreciated the efforts made by ICICI Bank instrengthening the Regional Rural Banks it got when it took over the Bank ofRajasthan. The Committee noted that today even private sector banks weresetting up RRBs as it was an important vehicle for penetrating the rural areasof the country. The RRBs are also an important tool for meeting priority

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sector targets. The Committee therefore urged the Ministry of Finance tomake efforts to strengthen the network of Regional Rural Banks in the countrybecause they were an important component for achieving financial inclusionin the country.

26. The Committee was also apprised at various places about the shortageof staff in the branches of rural banks. At most of the places in the remoteareas, the branches are working with one manager and one clerk. If cash is tobe deposited or withdrawn, the branch has to be shut thus causinginconvenience to consumers. These banks are servicing large number of ruralpeople who otherwise need assistance from the staff to open bank accountsand also to know about the various schemes. So the work of rural banks isdifferent from branches servicing in urban areas where they deal with accountshaving large amount of money. However, in rural areas the bank staff has todeal with lots of people. Keeping in mind the consumers interest theCommittee recommends that there should be realistic assessment ofthe work load on the officers of rural banks and minimum staffrequirements should be determined on the basis of number of operativeaccounts.

27. The Committee based upon its wide ranging discussions considered theRules and recommends as follows:

i. Rule 3: Category of Posts

The Rule mentions five category of posts upto scale V, i.e., AssistantGeneral Manager. During the course of the discussions with various BankUnions, it was felt that Scale VI should also be brought in category ofposts so that officers recruited in rural banks are able to earn promotionsupto the level of Deputy General Manager. The Board may create post ofthis level and accordingly the Third Schedule may be amended. This schedulemay provide for minimum qualifications for the post of Deputy GeneralManager. The post may be exclusively filled from amongst the eligible officersof rural bank.

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The Third Schedule specifies that for scale II, 25% vacancies have tobe filled up by direct promotion of which 10% from specialist cadre. TheCommittee feels that immediately after scale I for which there is alreadyopen recruitment it is not appropriate to go for direct recruitment. Thiswill deny lots of eligible officers from their promotions. It isrecommended that 10% of the vacancies may be filled up by thespecialized cadre while rest of the posts should be filled by promotionsonly. In the same way for scale III also 10% vacancies have been soughtto be filled up by direct recruitment. The Committee feels that thismeans should be resorted only if the eligible officers of the homegrowncadre are not available.

The schedule also prescribes that for scale IV the posts are to be filledup either by promotion or on deputation basis. The Committee feels thatthis scale is not senior enough where officers have to be brought ondeputation basis. The posts should be filled up from the eligible officersof the homegrown cadre itself. The Committee is of the view that officersat this stage coming from either sponsor bank or some other bank willlack working culture of the concerned rural bank and will not be able tounderstand the working of rural bank at the grass root level. ChiefManager or Regional Manager will be commanding large rural areawhere understanding of rural area and its people will be of immenseimportantance. This lack of experience will hinder working of entirebanking system in rural areas. Hence it’s important that homegrownofficer is always appointed to this post who will have wealth of experienceat this level.

ii. Rule 4: Creation of Post

The Board is empowered to create posts in accordance with theguidelines approved by the Central Government from time to time. TheCommittee feels that Government should publish the guidelines in therule itself for the sake of transparency which may be amended fromtime to time if so required.

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iii. Rule 5: Vacancies

The Board may determine the number of vacancies in each category ofposts to be filled by direct recruitment or promotion. The Committee whilediscussing the rules with major banks and unions found that large number ofvacancies exist in most of the branches of rural banks and there is huge gapbetween demand and supply of human resources. Lots of branches are workingwith either one manager or with one manager and a clerk. The sponsor bankshave given the reasons that since these banks are dealing with small amountsand micro- credit in the rural areas so it is economically not viable.

The Committee recommends that Board should assess the vacanciesand requirements of human resources at various levels on the basis ofactual requirement in the rural areas considering number of accountsand schemes as one of the parameters. The Bank should assess thevacancy position in advance so that immediately after retirement thevacancies are filled up. The banks should conduct cadre reviewperiodically.

iv. Rule 7: Appointing Authority

Rule says that Chairman shall be appointing authority in respect of officersand the General Manager be appointing authority in respect of employees.However, the terms ‘Chairman’ and ‘General Manager’ have not been definedin the definition clause of the Rules. It is not clear whether ‘Chairman’ and‘General Manager’ mean Chairman of the sponsoring bank or rural bank.Though explanation to Rule 3 says that Chairman may designate officers asBranch Manager, Regional Manager or General Manger. The Committee feelsthat when the Chairman and General Manager have been assigned suchimportant task, their position and rank should be defined in the ruleitself.

v. Rule 8: Direct Recruitment

These rules prescribe direct recruitment of officers at entry level as

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well as through lateral entry at various positions in the middle management.The rules also provide scope for deputation. The Committee feels it willnot be desirable to recruit the officers through direct recruitment atmiddle level as the officers coming fresh from outside will lack experienceand may also destabilize the structure. This will also give less opportunityto the officers coming at entry level for further promotions. TheCommittee feels if eligible officers are available they should be givenopportunity to grow further. This will give them incentive to work.

SUMMARY OF OBSERVATIONS/RECOMMENDATIONS OF THE COMMITTEE

28. The Committee, however, expressed its concerns about thepromotion avenues available to the officers and employees of theRegional Rural Banks as campared to the Employees working in theSponsor Banks. The Committee therefore recommends that adequateprovisions for time bound promotions should be provided in the Rulesitself.

29. The Committee took note of the issues raised and recommendsthat the Ministry should look into the feasibility of extending pensionarybenefits as provided to the staff of the sponsor banks to the officers andemployees of the RRBs also.

30. The Committee therefore was of the opinion that the Ministryshould look into the possibility of relaxing the required educationalqualifications for candidates aspiring to join the RRBs. This would helpthe local youth to join and serve the RRBs. This is particularly relevantkeeping in view the fact that RRBs tend to operate in rural and backwardareas of the States and the local youth of such areas tend to suffer fromlack of good educational institutes in these areas. As the local youthstend to be well conversant with the local people and their surroundingthey can be instrumental to develop a good network for RRBs in ruraland backward areas of the States.

31. The Committee therefore recommends that the Ministry of Financeshould take up the matter with the concerned State Governments so asto ensure that share to be contributed by them is released by the States.This is essential for the revival of the RRBs and for their effectivefunctioning.

32. Keeping in view the fact that SHGs have being playing a key role17

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in the economic empowerment of women in rural areas the Committeewas of the opinion that Ministry and the sponsor banks should look intothe feasibility of setting up all women RRBs in some districts and morespecifically in those regions were number of women managed SHGs arequite active. This would help these SHGs integrate more effectivelywith the RRBs and also be source of motivation for women to set upSHGs.

33. The Committee however was of the opinion that it would be moreappropriate if the tenure of the Chairman of the RRBs was duly ensuredby the rules. Also the conditions in which the Chairman could be removedshould be specified in the rules itself. This would help bring sufficientflexibility in the removal of the Chairman while ensuring a certainamount of stability of tenure. It therefore recommends that the Ministryaccordingly study the rules to incorporate the views of the Committee.The Committee was also of the view that the Sponsor Banks shouldappoint at least General Manager rank Officer as Chairman of the RuralBank.

34. Based on its interactions with employees of different RRBs theCommittee decided to recommend the following:

(i) The minimum period of service in a particular Scale ofpromotion may be introduced to 4 years from 5-6 years uptoScale-III to bring younger and energetic work force at higherlevels;

(ii) At least 25% of the candidates may be kept in the waitinglist on promotion;

(iii) Minimum period of preceding 4 years may be taken intoaccount for looking into adverse remarks before promotion;

(iv) The sealed cover process should be co-terminus with thecommencement of the next promotion process; and

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(v) The minimum qualifying marks in interview should be 50%.However, for candidates belonging to SC or ST categories, itshould be 45%.

35. Keeping in mind the consumers interest the Committeerecommends that there should be realistic assessment of the work loadon the officers of rural banks and minimum staff requirements shouldbe determined on the basis of number of operative accounts.

36. i. Rule 3:

It was felt Scale VI should also be brought in category of posts sothat officers recruited in rural banks are able to earn promotions uptothe level of Deputy General Manager.

36. ii. Third Schedule

The Committee feels that immediately after scale I for which thereis already open recruitment it is not appropriate to go for directrecruitment. This will deny lots of eligible officers from their promotions.It is recommended that 10% of the vacancies may be filled up by thespecialized cadre while rest of the posts should be filled by promotionsonly. In the same way for scale III also 10% vacancies have been soughtto be filled up by direct recruitment. The Committee feels that thismeans should be resorted only if the eligible officers of the homegrowncadre are not available.

The schedule also prescribes that for scale IV the posts are to be filledup either by promotion or on deputation basis. The Committee feels thatthis scale is not senior enough where officers have to be brought ondeputation basis. The posts should be filled up from the eligible officersof the homegrown cadre itself. The Committee is of the view that officersat this stage coming from either sponsor bank or some other bank willlack working culture of the concerned rural bank and will not be able tounderstand the working of rural bank at the grass root level. Chief

20

Manager or Regional Manager will be commanding large rural areawhere understanding of rural area and its people will be of immenseimportantance. This lack of experience will hinder working of entirebanking system in rural areas. Hence it’s important that homegrownofficer is always appointed to this post who will have wealth of experienceat this level.

36. iii. Rule 4: Creation of Post

The Committee feels that Government should publish theguidelines in the rule itself for the sake of transparency which may beamended from time to time if so required.

36. iv. Rule 5: Vacancies

The Committee recommends that Board should assess the vacanciesand requirements of human resources at various levels on the basis ofactual requirement in the rural areas considering number of accountsand schemes as one of the parameters. The Bank should assess thevacancy position in advance so that immediately after retirement thevacancies are filled up. The banks should conduct cadre reviewperiodically.

36. v. Rule 7: Appointing Authority

The Committee feels that when the Chairman and GeneralManager have been assigned such important task, their position andrank should be defined in the rule itself.

36. vi. Rule 8: Direct Recruitment

The Committee feels it will not be desirable to recruit the officersthrough direct recruitment at middle level as the officers coming freshfrom outside will lack experience and may also destabilize the structure.This will also give less opportunity to the officers coming at entry level

21

from further promotions. The Committee feels if eligible officers areavailable they should be given opportunity to grow further.

37. The Committee is hopeful that the Ministry would carry out therecommendations of the Committee expeditiously under intimation toit. The Committee is also of the opinion that proper monitoring andinspections are essential for the proper implementation of the Rulesand stresses upon the Ministry to work in close coordination with theRegional Rural Banks and their Sponsor Banks.

ANNEXURE-I

MINISTRY OF FINANCE(Department of Financial Services)

NOTIFICATION

New Delhi, The 13th July, 2010

S.O. 1663(E).- In exercise of the powers conferred by section 29 of theRegional Rural Banks Act, 1976 (21 of 1976) read with section 17 thereof andin supersession of the Regional Rural Banks (Appointment and Promotion ofOffice and other Employees) Rules, 1998 except as respects things done oromitted to be done before such supersession, the Central Government afterconsultaion with the National Bank and the Sponsor Banks specified in theSecond Schedule to these rules, hereby makes the following rules, namely :-

1. Short title and commencement.-

(1) These Rules may be called the Regional Rural Banks (Appointmentand Promotion of Offiecrs and Employees) Rules, 2010

(2) They shall come into force on the date of their publication in theOfficial Gazette.

2. Definitions.-

In these rules, unless the context otherwise requires,-

(a) "Act" means the Regional Rural Banks Act, 1976 (21 of 1976);

(b) "Committee" means the Committee constituted by the Board underrule 11 of these rules;

(c) "Regional Rural Bank (Officers and Employees) ServiceRegulations" means the Service Regulations framed under section30 of the Act;

(d) "Schedule" means any one of the Schedules to these rules;22

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(e) "Sponsor Bank" in relation to Regional Rural Bank specified incolumn (2) of the Second Schedule means;-

(i) the Sponsor Bank specified in column (3) of SecondSchedule; and

(ii) which sponsores the Regional Rural Banks specified incolumn (2) of the Second Schedule.

(f) all other words and expressions used in these rules and not definedbut defined in the Act shall have the meanings respectively assignedto them in the Act.

3. Category of Posts.-

(1) (a) The officers and employees of the Bank shall be classifiedas follows:-

(1) Group "A" - Officer

(i) Scale I- (Assistant Manager) - Junior Management

(ii) Scale II- (Manager) - Middle Management

(iii) Scale III- (Senior Manager)- Middle Management

(iv) Scale IV- (Chief Manager)- Senior Management

(v) Scale V- (Assistant General Manager)- SeniorManagement

Explanation: For the purposes of these rules, the Officers may befunctionally designated by the Chairman, as Branch Manager, Regional Manageror General Manager, depending on the work or functions assigned and theScale of the Officer.

(b) Group "B" - shall consist of Office Assistants (Multipurpose).

(c) Group "C" - shall consist of Office Attendants (Multipurpose).

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(2) Group "A", Group "B" and Group "C" shall consist of officers andemployees of each Regional Rural Bank specified in the FirstSchedule to these rules.

4. Creation of Posts.-

The Board may, create requisite number of vacancies in each categoryof posts as are specified in the First Schedule to these rules in accordance withthe guidelines approved by the Central Government from time to time.

5. Vacancies.-

The Board may determine the number of vacancies in each category ofposts to be filled by direct recruitment or promotion, keeping in view theGuidelines approved by Central Government from time to time.

6. Filling up of vacancies.-

(i) All vacancies determined under rules 5 by the Board shall be filledby promotion or direct recruitment in accordance with theprovisions contained in these rules and Third Schedule to theserules;

(ii) Officers in Senior Management of Scale IV and Scale V are liableto be posted to any other Regional Rural Bank sponsored by thesame Sponsor Bank as General Manager as per the decision of theSponsor Bank.

7. Appointing Authority.-

The Chairman shall be the Appointing Authority in respect of officersand the General Manager shall be the appointing authority in respect ofemployees. If so authorised by the Board.

Provided that if there is no incumbent to the post of General Manager,the Chairman shall be the Appointing Authority in respect of employees also.

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8. Direct recruitment.-

The vacancies of officers and employees shall be filled by each RegionalRural Bank in accordance with the provisions of Third Schedule of these rulesand subject to such guidelines as may be issued by the Central Governmentfrom time to time.

9. Agency for Direct Recruitment.-

(i) Written examination for the selection of the candidates by directrecruitment to the posts of officers and employees other than thoseof Group 'C' employees shall be entrusted to the Institute of BankingPersonnel Selection or any other agency approved by the SponsorBank.

(ii) The Institute of Banking Personnel Selection or approved Agencyshall follow the procedure as laid down under rule 8 and forwardthe list of candidates qualified in the written examination to theRegional Rural Bank concerned.

10. Recruitment to the posts of Group 'C'.-

The posts of Group 'C' employee shall be filled by the Regional RuralBank after making a reference to the Employment Exchange, Sainik Board orother agencies catering to the welfare of Scheduled Castes., Scheduled Tribes,Physically Challenged Persons or other special category of persons as arerecognised by the Central Government or the State Government havingjurisdiction over the Regional Rural Bank filling the posts:

Provided that preference shall be given to candidates belonging toScheduled Castes and Scheduled Tribes in accordance with the instructionsor guidelines issued by the Central Government in this regard from time totime.

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11. Constitution and function of Committee.-

(i) The Board may, from time to time, constitute Committeesconsisting of the persons specified under each post in the ThirdSchedule for the purpose of recommending candidates forrecruitment or promotion to the posts referred to in the ThirdSchedule.

(ii) The Committees shall function for such period as may be determinedby the Board.

(iii) The Committees shall recommend to the Appointing Authority thecandidates for recruitment or promotion to the posts mentioned inthe Third Schedule to these rules, in accordance with the provisionscontained in that Schedule.

12. Reservation.-

Provisions of Reservation Policy for Scheduled Castes, Scheduled Tribesand other Special category of persons as per the Guidelines of Departmentof Personnel and Training, issued from time to time, to the extent relevant inthe context of the Regional Rural Banks, shall apply while following theseRules.

13. Power to Interpret.-

The power to interpret these Rules shall vest in the Central Governmentand the Central Government may issue such administrative instructions orguidelines in consultation with the National Bank as may be necessary to giveeffect to and carry out the provisions of these rules or to remove any difficultyin their implementation.

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FIRST SCHEDULE(See rule 3)

Category of posts in each Regional Rural Bank

Serial Classification Description of post DesignationNumber of Officers

andEmployees

1 Group "A" Officer Junior Assistant ManagerManagement (Scale-I)

2 Group "A" Officer Middle ManagerManagement (Scale-II)

3 Group "A" Officer Middle Senior ManagerManagement (Scale-III)

4 Group "A" Officer Senior Chief ManagerManagement (Scale-IV)

5 Group "A" Officer Senior Assistant GeneralManagement (Scale-V) Manager

6 Group "B" Office Assistant Office Assistant(Multipurpose) (Multipurpose)

7 Group "C" Office Assistant Office Attendant(Multipurpose) (Multipurpose)

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SECOND SCHEDULE(See rule 2e)

List of Regional Rural Banks and their Sponsor Banks

Serial Name of the Regional Sponsor Bank StateNumber Rural Bank

(1) (2) (3) (4)

1 Chaitanya Godavari Andhra Bank Andhra PradeshGrameena Bank

2 Saptagiri Grameena Indian Bank Andhra PradeshBank

3 Deecan Grameena State Bank of Andhra PradeshBank Hyderabad

4 Andhra Pradesh State Bank of Andhra PradeshGrameena Vikas Bank India

5 Andhra Pragathi Syndicate Bank Andhra PradeshGrameena Bank

6 Arunachal Pradesh State Bank of Arunachal PradeshRural Bank India

7 Langpi Dehangi State Bank of AssamRural Bank India

8 Assam Gramin United Bank of AssamVikash Bank India

9 Uttar Bihar Gramin Central Bank of BiharBank India

29

10 Madhya Bihar Gramin Punjab National BiharBank Bank

11 Samastipur Kshetriya State Bank of BiharGramin Bank India

12 Bihar Kshetiya UCO Bank BiharGramin Bank

13 Surguja Kshetriya Central Bank of ChhattisgarhGramin Bank India

14 Durg Rajnandgaon Dena Bank ChhattisgarhGramin Bank

15 Chhattisgarh State Bank of ChhattisgarhGramin Bank India

16 Baroda Gujarat Bank of Baroda GujaratGramin Bank

17 Dena Gujarat Dena Bank GujaratGramin Bank

18 Saurashtra State Bank of GujaratGramin Bank Saurashtra

19 Haryana Gramin Bank Punjab National HaryanaBank

20 Gurgaon Gramin Bank Syndicate Bank Haryana

21 Himachal Gramin Bank Punjab National Himachal PradeshBank

22 Parvatiya Gramin Bank State Bank of Himachal PradeshIndia

(1) (2) (3) (4)

30

23 EIIaquai Dehati Bank State Bank of Jammu & KashmirIndia

24 J&K Gramin Bank J&K Bank Ltd. Jammu & Kashmir

25 Jharkhand Gramin Bank Bank of India Jhrakhand

26 Vananchal Gramin Bank State Bank of JhrakhandIndia

27 Pragathi Gramin Bank Canara Bank Karnataka

28 Chikmagalur Kodagu Corporation Bank KarnatakaGramin Bank

29 Krishna Gramin State Bank of KarnatakaBank India

30 Cauvery Kalpatharu State Bank of KarnatakaGramin Bank Mysore

31 Karnataka Vikas Syndicate Bank KarnatakaGramin Bank

32 Visveshvaraya Vijaya Bank KarnatakaGramin Bank

33 South Malabar Canara Bank KeralaGramin Bank

34 North Malabar Syndicate Bank KeralaGramin Bank

35 Sharda Gramin Bank Allahabad Bank Madhya Pradesh

36 Jhabua Dhar Kshetriya Bank of Baroda Madhya PradeshGramin Bank

(1) (2) (3) (4)

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37 Narmada Malwa Bank of India Madhya PradeshGramin Bank

38 Satpura Narmada Central Bank of Madhya PradeshKshetriya Gramin IndiaBank

39 Vidisha Bhopal State Bank of Madhya PradeshKshetriya Gramin IndoreBank

40 Madhya Bharath State Bank of Madhya PradeshGramin Bank India

41 Mahakaushal Kshetriya UCO Bank Madhya PradeshGramin Bank

42 Rewa Sidhi Gramin Union Bank of Madhya PradeshBank India

43 Maharashtra Gramin Bank of MaharashtraBank Maharashtra

44 Wainganga Krishan Bank of India MaharashtraGramin Bank

45 Vidharbha Kshetriya Central Bank of MaharashtraGramin Bank India

46 Manipur Rural Bank Union Bank of ManipurIndia

47 Meghalaya Rural Bank State Bank of MeghalayaIndia

48 Mizorm Rural Bank State Bank of MizoramIndia

(1) (2) (3) (4)

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49 Nagaland Rural Bank State Bank of NagalandIndia

50 Rushikulya Gramin Andhra Bank OrissaBank

51 Baitarni Gramin Bank Bank of India Orissa

52 Neelachal Gramin Indian Overseas OrissaBank Bank

53 Utkal Gramin Bank State Bank of OrissaIndia

54 Kalinga Gramin Bank UCO Bank Orissa

55 Puduvai Bharthiar Indian Bank PuducherryGramin Bank

56 Sutlej Gramin Bank Punjab and Sind PunjabBank

57 Malwa Gramin Bank State Bank of PunjabPatiala

58 Punjab Gramin Bank Punjab National PunjabBank

59 Baroda Rajasthan Bank of Baroda RajasthanGramin Bank

60 Mewar Anchalik Bank of Rajasthan RajasthanGramin Bank

61 Hadoti Kshetriya Central Bank of RajasthanGramin Bank India

(1) (2) (3) (4)

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62 MGB Gramin Bank State Bank of RajasthanBikaner and Jaipur

63 Jaipur Thar Gramin UCO Bank RajasthanBank

64 Rajasthan Gramin Punjab National RajasthanBank Bank

65 Pallavan Gramin Indian Bank Tamil NaduBank

66 Pandyan Gramin Indian Overseas Tamil NaduBank Bank

67 Tripura Gramin United Bank of TripuraBank India

68 Allahabad UP Allahabad Bank Uttar PradeshGramin Bank

69 Baroda UP Gramin Bank of Baroda Uttar PradeshBank

70 Aryavart Gramin Bank Bank of India Uttar Pradesh

71 Shreyas Gramin Bank Canara Bank Uttar Pradesh

72 Ballia Etawah Gramin Central Bank of Uttar PradeshBank India

73 Sarva UP Gramin Punjab National Uttar PradeshBank Bank

74 Purvanchal Gramin State Bank of Uttar PradeshBank India

(1) (2) (3) (4)

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75 Prathma Bank Syndicate Bank Uttar Pradesh

76 Kashi Gomti Samyut Union Bank of Uttar PradeshGramin Bank India

77 Kshetriya Kisan UP State Uttar PradeshGramin Bank Cooperative Bank

78 Nainital Almora Bank of Baroda UttarakhandKshetriya Bank

79 Uttaranchal Gramin State Bank of UttarakhandBank India

80 Uttar Banga Kshetriya Central Bank of West BengalGramin Bank India

81 Bangiya Gramin United Bank of West BengalVikash Bank India

82 Paschim Banga UCO Bank West BengalGramin Bank

THIRD SCHEDULE

(See rule 8 and 11)

Appointment to different categories of officers and employees to Group "A","B" and "C" posts whether by direct recruitment or by promotion shall beeffected as follows :

(1) (2) (3) (4)

35

Part I- Group "A"

Recruitment and Promotion

I Officer Junior Management (Scale-I)

(a) Name of Post Officer Junior Management (Scale-I)

(b) Classification Group "A"

(c) Mode of appointment 50% by Direct Recruitment and 50%by Promotion from Group "B"

(A) For Direct Recruitment

(i) Age Above 18 years but below 28 years(relaxation of age in case of ScheduledCastes/Scheduled Tribes candidates orcandidates belonging to other Reservedcategories in accordance with theinstructions/orders issued by theCentral Government from time to timein this regard).

(ii) Minimum Qualification (i) Bachelor degree of a recognisedUniversity in any discipline or itsequivalent.

Preference will be given to thecandidates having degree in AgricultureHorticulture, Forestry, AnimalHusbandry. Veterinary Science,Agricultural Engineering, Pisciculture,Agricultural Marketing andCooperation, Information Technology,Management, Law, Economics andAccountancy;

36

(ii) Proficiency in local language, asmay be specified by the Board.

(iii) Computer Knowledge orawareness will be an addedqualification.

(iii) Selection process The Selection shall be made on thebasis of written test and interview asunder.

written Test 70 marks

Interview 30 marks

Total 100 marks

The written test will be conducted bythe Institute of Banking PersonnelSelection or any other agencyapproved by the Sponsor Bank.

The written test shall cover (a) Testof Reasoning, (b) Numerical Ability,(c) General Knowledge and (d) GeneralEnglish or Hindi. The candidatessecuring a minimum 40% marks in thewritten test shall qualify for interviewIn the case of candidates belonging tothe Scheduled Castes or the ScheduledTribes categories the minimum marksin the written test shall be 35% toqualify for interview.

All those candidates who have securedminimum qualifying marks stipulated

37

fo written examination, in the order ofmerit, shall be called for interview uptothe ratio of 1.3

The merit lists of successful candidatesin each category shall be madeseparately on the basis of combinedperformance in the written test andinterview.

(iv) Preparation of Lists of successful candidates forMerit list appointment to Officer Junior

Management (Scale I) shall beprepared on the basis of rankingaccorded to them in the combinedperformance of written test andinterview for General, ScheduledCastes Scheduled Tribes and OtherSpecial categories, separately.

The number of selected candidates tobe empanelled for recruitment shall beequal to the number of notifiedvacancies In addition thereto, anadditional panel of selected candidates,not exceeding 50% of the notifiedvacanies as may be decided by theBoard with a minimum of twocandidates in each category, shall bedrawn up to meet exigencies.

(B) For Promotion

(i) Mode of Promotion 50% of the vacancies for promotion

38

shall be filled under Normal Channeland 50% under Fast Track Channel asper eligibility and selection processgiven as follows:-

(ii) Eligibility Promotion shall be made from amongstthe employees holding, on full time andregular basis the post of OfficeAssistant (Multipurpose)

Normal Channel

Must have ten years experience asOffice Assistant (Multipurpose) on fulltime and regular basis. The minimumeligibility in terms of the number ofyears of service for promotion shallbe reckoned as on the 1st day of Aprilof the year in which the vacany isexpected to arise or has actually arisen.Relaxation in eligibilty criteria of oneyear service will be given to such ofthe candidates who have passed JuniorAssociate of the Indian Institute ofBankers (JAIIB) of Indian Institute ofBanking and Finacne and one moreyear in case of such candidates whohave passed Certified Associate of theIndian Institute of Bankers (CAIIB) ofIndian Institute of Banking & Finance.However. such relaxation will beavailable only once during the entireservice period.

39

Provied that no employee shall beconsidered for promotion unless he hasbeen confirmed in the feeder gradepost.

Zone of consideration

Three times the number of vacanciesincluding repeaters:

Explanation:

1 Vacancies under Normal Channelshall be filled after filling thevacancies under Fast TrackChannel.

2 The Employees who are eligibleunder Normal Channel shall also beconsidered under Fast TrackChannel.

3 There shall be common writtenexamination and interview for boththe channels.

Fast-Track Channel

Must have six years service as OfficeAssistant (Multipurpose) on full timeand regular basis and should havepassed Graduation from a recognisedUniversity. The minimum eligibility interms of the number of years of servicefor promotion shall be reckoned as on

40

the 1st day of April of the year in whichthe vacancy is expected to arise or hasactually arisen Relaxation in eligibilitycriteria of one year service will be givento such of the candidates who havepassed Junior Associate of the IndianInstitute of Bankers (JAIIB) of IndianInstitute of Banking and Finance andone more year in case of suchcandidates who have passed CertifiedAssociate of the Indian Institute ofBankers (CAIIB) of Indian Institute ofBanking & Finance. However, suchrelaxation will be available only onceduring the entire service period.

Provided that no employee shall beconsidered for promotion unless he hasbeen confirmed in the feeder gradepost.


All eligible employees

(iii) Selection Process The selection shall be on the basis ofperformance in the written test,interview and last five yearsperformance appraisal reports as perthe division of marks given below.

written Test 50 marks

Interview 20 marks

41

Performance Appraisal 30 marksReports

Total 100 marks

The candidates shall be required toappear in a written test comprising testin General English or Hindi and GeneralBanking knowledge. 50 marks allottedto written test shall be further dividedas under.

(i) General English or 20 marksHindi

(ii) General Banking 30 marksknowledge

Total marks 50 marks

(iv) Preparation of merit List Normal Channel

There shall be minimum qualifyingmarks of 50% in aggregate of writtentest, interview and performanceappraisal reports.

Selection of successful candidates forpromotion shall be made by goingdown in Seniority Order starting fromthe top and selecting those found toscore the said minimum qualifyingmarks of 50% in the aggregate up to anumber equal to the number ofvacancies notified for this channel.

42

Fast Track Channel


Selection will be based on the aggregatemarks secured in the written test,interview and performance appraisalreports by placing the candidates indescending order of merit to the extentof number of vacancies.

The vacancies under this channel,which remain unfilled for want ofnon-selection of adequate number ofcandidates shall lapse and shall be filledup by way of normal channel.

(d) Inter-se-Seniority The Inter-se-seniority of all theempanelled officers selected throughnormal channel or fast track channelin their feeder posts shall remainunchanged.

(e) Composition of the The Committee shall consist of theCommittee for following namely :-Interview

(1) The Chairman of the Regional RuralBank concerned - Chairman

(2) Director nominated by the SponsorBank - Member

43

(3) Director nominated by the NationalBank - Member

Note If none of the members of theCommittee belongs to the ScheduledCastes or the Scheduled Tribes, theBoard may nominate an officer ofsuitable position belonging to theScheduled Castes or the ScheduledTribes as an additional member of theCommittee.

(f) Validity of the panel The panel shall be valid for a peiod offor direct recruitment one yearand for promotion.

II Officer Middle Management (Scale II)

(a) Name of post Officer Middle Management (Scale II)

(b) Classification Group "A"

(c) Mode of appointment 25% by direct recruitment (of which10% from Specialist cadre likeInformation Technology, Agriculture,Treasury, Law, Marketing, CharteredAccountants etc. and 15% fromexperienced officers) and 75% bypromotion.


(i) Age Above 21 years but below 32 years(relaxation of age in case of theScheduled Castes or the Scheduled

44

Tribes candidates or candidatesbelonging to other special categoriesin accordance with the instructions/orders issued by the CentralGovernment from time to time in thisregard.

(ii) Minimum Qualification (I) Information Technologyand Eligibility

Degree from a recognised Universityin Electronics/Communication/Computer Science/InformationTechnology or its equivalent with aminimum of 50% marks in aggregate.

Desirable Experience :

Certificate in ASP, PHP, C++, Java, VB,VC, OCP etc.

Experience: One year

(II) Chartered Accountants

Experience : One year

(III) Law Officer

Degree from a recognised Universityin Law or its equivalent with aminimum of 50% marks in aggregate.

Experience :-

Two years as an advocate or shouldhave worked as law Officer in Banks

45

or Financial Institutions for a periodnot less than two years.

(IV) Treasury Manager

Candidate should be a CharteredAccountant or MBA in Finance from areputed Institute Experience- one year

(V) Marketing Officer

MBA in Marketing from any Instituteof repute Experience :- one year

(VI) Agricultural Officer

Degree from a recognised Universityin any discipline in Agriculture,Horticulture, Dairy, Animal Husbandry,Forestry, Veterinary Science,Agricultural Engineering, Piscicultureor its equivalent, with a minimum of50% marks in aggregate.

Experience - Two years

(VII) General Banking Officer

Degree from a recognised Universityin any discipline or its equivalent witha minimum of 50% marks inaggregate. Preference will be given tothe candidates having degree/diplomain Banking, Finance, Marketing,Agriculture, Horticulture, Forestry,

46

Animal Husbandry, Veterinary Science,Agricultural Engineering, Pisciculture,Agricultural Marketing and Co-operation, Information Technology,Management, Law, Economics andAccountancy.

Experience- Two years as an officerin Bank or Financial Institution.

(iii) Selection process The selection of the candidates shallbe on the basis of written test andinterview. The written test shall beconducted through Institute ofBanking Personnel Selection or anyother agency approved by the SponsorBank.

The candidates securing a minimumqualifying marks of 40% in the writtentest shall qualify for interview. In thecase of candidates belonging to theScheduled Castes or the ScheduledTribes categories, the minimumqualifying marks in written test shallbe 35% to quality for interview.

All those candidates who have securedminimum qualifying marks stipulatedfor written examination, in the orderof merit, shall be called for interviewupto the ratio 1:3.

47

The merit lists of successfulcandidates in each category shall bemade separately on the basis ofcombined performance in the writtentest and interview.

(iv) Preparation of Merit The list of successful candidates forList appointment to Officer Middle

Management (Scale II) shall beprepared on the basis of their combinedperformance of written test andinterview for General, ScheduledCastes, Scheduled Tribes and otherSpecial categories separately.

The number of selected candidates tobe empanelled for recruitment shall beequal to the number of notifiedvacancies. In addition thereto, anadditional panel of selected candidatesnot exceeding 50% of the notifiedvacancies to be decided by the Boardwith a minimum of two candidates ineach category shall be drawn-up tomeet exigencies.

(B) For Promotion:

(i) Mode of Promotion 50% of the vacancies for promotionshall be filled under Normal Channeland 50% under Fast Track Channel asper eligibility and selection processgiven as follows:-

48

(ii) Eligibility Promotion shall be made from amongstthe officers holding the post of OfficerJunior Management (Scale I), full timeon a regular basis.

Normal Channel

Must have eight years experience asOfficer Junior Management (Scale I)on full time and regular basis. Theminimum eligibility in terms of thenumber of years of service forpromotion shall be reckoned as on the1st day of April of the year in whichthe vacancy is expected to arise or hasactually arisen. relaxation in eligibilitycriteria of one-year service will be givento such of the candidates who havepssed Junior Associate of the IndianInstitute of Bankers (JAIIB) of IndianInstitute of Banking and Finance andone more year in case of suchcandidates who have passed CertifiedAssociate of the Indian Institute ofBankers (CAIIB) of Indian Institute ofBanking & Finance. However, suchrelaxation will be available only onceduring the entire service period:

Provided that no officer shall beconsidered for promotion unless he hasbeen confirmed in the feeder gradepost.

49

Zone of consideration:

Three times the number of vacanciesincluding repeaters.

Explanation.-

1. Vacancies under Normal Channelshall be filled after filling the vacanciesunder Fast Track Channel.

2. The Officers who are eligible underNormal Channel shall also beconsidered under Fast Track Channel.

3. There shall be common writtenexamination and interview for both theChannels.

Fast Track Channel :

In Officer Junior Management (Scale-I) for a period of six years. Theminimum eligibility in terms of thenumber of years of service forpromotion shall be reckoned as on the1st day of April of the year in whichthe vacancy is expected to arise or hasactually arisen. Relaxation in eligibilitycriteria of one-year sevice will be givento such of the candidates who havepassed Junior Associate of the IndianInstitute of Bankers (JAIIB) of IndianInstitute of Banking and Finance andone more year in case of such

50

candidates who have passed CertifiedAssociate of the Indian Institute ofBankers (CAIIB) of Indian Institute ofBanking & Finance. However, suchrelaxation will be available only onceduring the entire service period.

Zone of consideration :

All eligible officers.

(iii) Selection Process The selection shall be on the basis ofperformance in the written test, interviewand performance appraisal reports forpreceding five years as per the divisionof marks given below:

Written Test 50 MarksInterview 20 marksPerformance AppraisalReports 30 marks

Total : 100 marks

50 marks allotted to written test shallbe further divided as under :-

Part "A" : 25 marksPart "B" : 25 marks

The candidates shall be required toappear for a written test comprisingof two parts namely Part (A) coveringBanking Law and Practice of Bankingand Part (B) covering Credit Policy,

51

Credit Management including PrioritySector, Economics and Management.

(iv) Preparation of Normal Channel:Merit List



Fast Track Channel:

The selection of candidates shall bemade by the Committee in order ofmerit on the basis of written test,interview and performance appraisalreports.

There shall be minimum cut off marksof 60% in aggregate in the writterntest, interview and performanceappraisal reports. Selection will bebased on the aggregate marks securedin the written test, interview and

52

performance appraisal reports byplacing the candidates in descendingorder of merit to the extent of numberof vacancies.


(d) Inter-se-Seniority The inter-se-seniority of all theempanelled officers selected throughnormal channel or fast track channelin their feeder posts shall remainunchanged.

(e) Composition of the The Committee shall consist of theCommittee for following, namely:-Interview

(1) The Chairman of the Regional RuralBank concerned -Chairman

(2) Director nominated by the SponsorBank- Member

(3) Director nominated by the NationalBank-Member

Note :- If none of the members of theCommittee belongs to the ScheduledCastes or the Scheduled Tribes, theBoard may nominate an officer of

53

suitable position belonging to theScheduled Castes or the ScheduledTribes as an additional member of theCommittee.

(f) Validity of the Panel The pannel shall be valid for a periodfor Direct Recruitment of one year.and for Promotion

III Officer Middle Management (Scale III)

(a) Name of post Officer Middle Management (Scale III)

(b) Classification Group “A”

(c) Mode of Appointment 10% by direct recruitment and 90%by promotion


(i) Age Below the age of 40 years (relaxationof age in the case of the scheduledcastes or the Scheduled Tribescandidates or candidates belonging toother Special categories in accordancewith the instructions/orders issued bythe Central Government from time totime in this regard.

(ii) Minimum Qualification Degree from a recognised Universityand Eligibility in any discipline or its equivalent with

a minimum of 50% marks in aggregate.

Preference will be given to thecandidates having Degree/Diploma in

54

Banking, Finance, Marketing,Agriculture, Horticulture, Forestry,Animal Husbandry, Veterinary Science,Agricultural Engineering, Pisciculture,Agricultural Marketing and Co-operation, Information Technology,Management, Law, Economics andAccountancy.

Experience : Minimum 5 yearsexperience as an Officer in any Bankor Financial Institutions.

(iii) Selection process The selection of the candidates shallbe on the basis of written test andinterview. The written test shall beconducted through Institute ofBanking Personnel Selection or anyother agency approved by the SponsorBank.

The candidates securing a minimumqualifying marks of 40% in the writtentest shall qualify for interview. In thecase of candidates belonging to theScheduled Castes or the ScheduledTribes categories, the minimumqualifying marks in the written test shallbe 35% to qualify for interview.

All those candidates who have securedminimum qualifying marks stipulatedfor the written examination, in the order

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of merit, shall be called for interviewupto the ratio 1:3.


(iv) Preparation of The list of successful candidates forMerit List appointment to Officer Middle

Management (Scale III) shall be madeon the basis of their combinedperformance of written test andinterview for General, ScheduledCastes, Scheduled Tribes and otherSpecial categories, separetely.

The number of selected candidates tobe empanelled for recuitment shall beequal to the number of notifiedvacancies. In addition thereto, anadditional panel of selected candidatesnot exceeding 50% of the notifiedvacancies as may be decided by theBoard with a minimum of twocandidates in each category shall bedrawn-up to meet exigencies.

(B) For Promotion:

(i) Mode of Promotion 50% of the vacancies for promotionshall be filled under Normal Channel

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while 50% under Fast Track Channelas per eligibility and selection processgiven as follows :-

(ii) Eligibility Promotion shall be made from amongstthe officers holding on full time and aregular basis, the post of OfficerMiddle Management (Scale II)

Normal Channel

Must have seven years experience asan Officer Middle Management (ScaleII). The minimum eligibility in termsof the number of years of service forpromotion shall be reckoned as on the1st day of April of the year in whichthe vacancy is expected to arise or hasactually arisen. Relaxation in eligibilitycriteria of one-year service will be givento such of the candidates who havepassed Junior Associate of the IndianInstitute of Bankers (JAIIB) of IndianInstitute of Banking and Finance andone more year in case of suchcandidates who have passed CertifiedAssociate of the Indian Institute ofBankers (CAIIB) of Indian Institute ofBanking & Finance. However, suchrelaxation will be available only onceduring the entire service period:

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Three times of the number of vacanciesincluding repeaters.

Explanation :-

(1) Vacancies under Normal Channelshall be filled after filling the vacanciesunder Fast Track Channel.

(2) The Officers who are eligible underNormal Channel shall also beconsidered under Fast Track Channel.

(3) There shall be a written Examinationfor Fast Track Channel.


Must have five years experience as anOfficer Middle Management (ScaleII). The minimum eligibility in termsof the number of years of service forpromotion shall be reckoned as on the1st day of April of the year in whichthe vacancy is expected to arise or hasactually arisen. Relaxation in eligibilitycriteria of one-year service will be givento such of the candidates who have

58

passed Junior Associate of the IndianInstitute of Bankers (JAIIB) of IndianInstitute of Banking and Finance andone more year in case of suchcandidates who have passed CertifiedAssociate of the Indian Institute ofBankers(CAIIB) of Indian Institute ofBanking & Finance. However, suchrelaxation will be available only onceduring the entire service period:



All eligible Officers.

(iii) Selection Process Normal Channel:

The selection shall be on the basis ofperformance in the interview andperformance appraisal reports forpreceding six years as per the divisionof marks given below:

Interview 40 marks


Total 100 marks

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The minimum qualifiying marks in theinterview shall be 50%.

Performance Appraisal Reports for thepreceding six years shall be consideredfor the purpose of awarding marks forpromotion. The minimum qualifyingmarks in the performance appraisalreports shall also be 50%.


The selection shall be on the basis ofperformance in the written test,interview and performance appraisalreports for preceding six years as perthe division of marks given below:

Written Test 50 Marks

Interview 20 marks


Total 100 marks

50 marks allotted to written test shallbe further divided as under:-

Part "A" 25 marks

Part "B" 25 marks

The candidates shall be required toappear for a written test comprisingtwo parts namely:-

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Part (A) covering Banking Law andPractice of Banking; and Part (B)covering Credit Policy, CreditManagement including Priority Sector,Economics and Management.

(iv) Preparation of Normal Channel :Merit List There shall be minimum qualifying

marks of 50% in aggregate of writtentest, interview and performanceappraisal reports.



The selection of candidates shall bemade by the Committee in order ofmerit on the basis of written test,interview and performance appraisalreports.

There shall be a minimum cut offmarks of 60% in aggregate in thewritten test, interview and

61

performance appraisal reports.Selection will be based on the aggregatemarks secured in the written test,interview and perfomance appraisalreports by placing the candidates indescending order of merit to the extentof number of vacancies.


(d) Inter-se-seniority The Inter-se-seniority of all theempanelled officers selected throughnormal channel or fast track channelin their feeder posts shall remainunchanged.

(e) Composition of The Committee shall consist of thethe Committee for following persons namely:-Interview (1) The Chairman of the Regional Rural

Bank concerned -Chairman

(2) Director nominated by the SponsorBank -Member

(3) Director nominated by the NationalBank -Member

Note: If none of the members of theCommittee belongs to the ScheduledCastes or the Scheduled Tribes, the

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Board may nominate an officer ofsuitable position belonging to theScheduled Castes or the ScheduledTribes as an additional member of theCommittee.

(f) Validity of the Panel The panel shall be valid for a periodfor Direct Recruitment of one year.and for Promotion

IV Officer Senior Management (Scale IV)

(a) Name of post Officer Senior Management (Scale IV)

(b) Classification Group “A”

(c) Mode of appointment By promotion or deputation as pereligibility and selection process givenhereinafter.

(A) For Promotion

(i) Eligibility Promotion shall be made from amongstthe officers holding, on a regularbasis, the post of Officer MiddleManagement (Scale III) for a periodof four years. The minimum eligibilityin terms of the number of years ofservice for promotion shall bereckoned as on the 1st day of April ofthe year in which the vacancy isexpected to arise or has actuallyarisen.

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(ii) Selection Process The selection shall be on the basis ofcombined performance in the interviewand performance appraisal reports forpreceding four years as per the divisionof marks given below:

Interview 40 marks


Total 100 marks

(iii) Preparation of List of successful candidates forMerit list promotion shall be made by the

Committee in order of merit on thebasis of combined performance ofinterview and performance appraisalreports.

The number of selected candidates tobe empanelled for promotion shall beequal to the number of notifiedvacancies in the order of merit.

(iv) Inter-se-seniority The Inter-se-seniority of all theempanelled officers in their feederposts shall remain unchanged.

(v) Composition of The Committee shall consist of theCommittee for interview following namely:-

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(1) The Chairman of the Regional RuralBank concerned -Chairman

(2) Director nominated by the SponsorBank - Member

(3) Director nominated by the NationalBank -Member

Note: If none of the members of theCommittee belongs to the ScheduledCastes or the Scheduled Tribes, theBoard may nominate an officer ofsuitable position belonging to theScheduled Castes or the ScheduledTribes from the Regional Rural Bankor Sponsor Bank or National Bank asan additional member of theCommittee.

(vi) Validity of the Panel The panel shall be valid for a furtherperiod of one year.

(B) For DeputationCriteria Officers holding analogous post in

Regional Rural Bank sponsored by thesame Sponsor Bank.

V Officer Senior Management (Scale V)

(i) Name of the post Officer Senior Management (Scale V)

(ii) Classification Group “A”

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(iii) Mode of appointment By promotion as per eligibility andselection process given hereinafter.

(iv) Eligibility Promotion shall be made from amongstthe officers holding, on a regular basisthe post of Officer Senior Management(Scale IV) for a period of three years.The minimum eligibility in terms of thenumber of years of service forpromotion shall be reckoned as on the1st day of April of the year in whichthe vacancy is expected to arise or hasactually arisen.



(v) Selection Process The selection shall be on the basis ofcombined performance in the interviewand performance appraisal reports forpreceding six years as per the divisionof marks given below:

Interview 40 marks


Total 100 marks

(vi) Preparation of List of successful candidates forMerit list promotion shall be made by the

Committee in order of merit on the

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basis of combined performance ofinterview and performance appraisalreports.

The number of selected candidates tobe empanelled for promotion shall beequal to the number of notifiedvacancies in the order of merit.

(vii) Inter-se-seniority The Inter-se-seniority of all theempanelled officers in their feederposts shall remain unchanged.

(viii) Composition of The Committee shall consist of theCommittee following namely:-

(1) The General Manager of theRegional Rural Bank Division of theSponsor Bank -Chairman

(2) One of the PRB Chairmen of thesame Sponsor Bank, to be nominatedby the Sponsor Bank - Member

(3) An Officer nominated by NationalBank not below the rank of GeneralManager -Member

Note: If none of the members of theCommittee belongs to the ScheduledCastes or the Scheduled Tribes, theBoard may nominate an officer ofsuitable position belonging to theScheduled Castes or the Scheduled

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Tribes from the Regional Rural Bankor Sponsor Bank or National Bank asan additional member of theCommittee.

(ix) Validity of the Panel The panel shall be valid for a period ofone year.

Note :

1. The incumbents eligible for promotion on or before the publication ofthis notification shall continue to be considered for promotion.

2. The service of the incumbents, who are holding the posts eligible forpromotion before publication of this notification, shall continue to becounted for the purpose of promotion.

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Part II - Group “B”

Recruitment and Promotion

Office Assistant (Multipurpose)

1 (a) Name of Post Office Assistant (Multipurpose)

(b) Classification Group “B”

(c) Mode of Appointment 75% by direct recruitment and 25%by promotion

(A) For Direct Recruitment :

(i) Age Between 18 years and 28 years(relaxation of age in case of theScheduled Castes or the ScheduledTribes candidates or candidatesbelonging to other Special categoriesin accordance with the instructions/orders issued by the CentralGovernment in this regard from timeto time)

(ii) Minimum Qualification (i) Bachelor Degree or its equivalentand Eligibility of a recognised University in any

discipline :

(ii) (a) Essential : Proficiency in locallanguage as may be specified by theBoard (b) Desirable: Knowledge ofComputer skills.

(iii) Selection Process The Selection shall be made on thebasis of written test and interview asunder:

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Written Test : 70 marks

Interview : 30 marks

The written test shall be conducted bythe institute of Banking PersonnelSelection or any other agencyapproved by the Sponsor Bank.

The written test shall cover (a) Testof Reasoning, (b) Numerical Ability,(c) General Knowledge and (d) GeneralEnglish or Hindi.

The candidate securing a minimum of40% marks in the written test shallqualify for interview in the case ofcandidates belonging to the ScheduledCastes or the Scheduled Tribescategories, the minimum marks in thewritten test shall be 35% to qualify forinterview.

All those candidates who have securedminimum qualifying marks in writtenexamination, in the order of merit, shallbe called for interview upto the ratioof 1:3.


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(iv) Preparation of Lists of successful candidates forMerit list appointment to Office Assistant

(Multipurpose) shall be prepared on thebasis of ranking accorded to thembased on aggregate marks in writtentest and interview for General, theScheduled Castes, the ScheduledTribes and Other Special categories,separately.

The number of selected candidates tobe empanelled for promotion shall beequal to the number of notifiedvacancies in the order of seniority. Inaddition thereto, an additional panel ofselected candidates not exceeding 50%of the notified vacancies as may bedecided by the Board with a minimumof two candidates for each category,shall be drawn upto meet theexigencies.

(B) For Promotion

(i) Mode of promotion 70% of the vacancies by promotionunder Normal Channel and 30% underFast Track Channel as per eligibilityand selection process given hereinafter.

(ii) Eligibility Promotion shall be made from amongstthe employees holding the post ofOffice Attendant (Multipurpose) on aregular basis.

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Normal Channel :

Must have ten years experience asOffice Attendant (Multipurpose) andalso must have passed 10th Standard.The minimum eligibility in terms of thenumber of years of service forpromotion shall be reckoned as on the1st day of April of the year in whichthe vacancy is expected to arise or hasactually arisen.

Provided that no employee shall beconsidered for promotion unless he hasbeen confirmed in the feeder gradepost.


Three times of the number of vacanciesincluding repeaters.

Explanation.-

(1) Vacancies under Normal Channelshall be filled after filling the vacanciesunder Fast Track Channel.

(2) The Employees who are eligibleunder Normal Channel shall also beconsidered under Fast Track Channel.

(3) There shall be common writtenexamination and interview for both thechannels.

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Must have five years experience asOffice Attendant (Multipurpose) withGraduation from a recognisedUniversity. The minimum eligibility interms of the number of years of servicefor promotion shall be reckoned as onthe 1st day of April of the year in whichthe vacancy is expected to arise or hasactually arisen:

Provided that no employee shall beconsidered for promotion unless he hasbeen confirmed in the feeder grade post.


All eligible employees.

(iii) Selection Process The selection shall be on the basis ofcombined performance in the writtentest and interview as per the divisionof marks, given below :

Written Test 70 Marks

Interview 30 marks

Total 100 marks

The candidates shall be required toappear for a written test comprisingtest in English or Hindi and Arithmetic.70 marks allotted to written test shallbe further divided as under:

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English or Hindi 35 marks

Arithmetic 35 marks

Total 70 marks

(iv) Preparation of Merit list Normal Channel :

Selection of candidates for promotionshall be on the basis of combinedperformance in Written Test andInterview for General, ScheduledCaste, Scheduled Tribe and OtherSpecial Categories, separately.

There shall be a minimum cut off markof 40% in aggregate of written test andinterview.

The number of selected candidates tobe empanelled for promotion shall beequal to the number of notifiedvacancies in the order of seniorityfrom among the candidates whosecure the minimum cut off marks.


The selection of candidates shall bemade by the Committee in order ofmerit on the basis of combinedperformance in written test andinterview for General, ScheduledCaste, Scheduled Tribe and OtherSpecial Categories, separately.

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There shall be a minimum cut offmarks of 45% in aggregate in thewritten test and interview. Selectionshall be based on the aggregate marksobtained in the written test andinterview by placing the candidates indescending order of merit to the extentof number of vacancies.


(d) Inter-se-seniority The Inter-se-seniority of all theempanelled employees selectedthrough normal channel or fast trackchannel in their feeder posts shallremain unchanged.

(e) Composition of the The Committee shall consist of theCommittee for following persons, namely:-Interview (1) The General Manager and where

there is no General Manager, an officernominated by the Board of RegionalRural Bank - Chairman

(2) An officer of the Regional RuralBank concerned not below the rank ofofficer scale II as nominated by theBoard - Member

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(3) An officer nominated by theSponsor Bank - Member

(4) An officer nominated by theNational Bank - Member

Note : If none of the members of theCommittee belongs to the ScheduledCaste or the Scheduled Tribe, theBoard may nominate an officer ofsuitable position belonging to theScheduled Caste or the ScheduledTribe as an additional member of theCommittee.

(f) Validity of the panel for The panel shall be valid for a period ofdirect recruitment and one year.for promotion

Note:



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Part III-Group “C”

Recruitment

Office Attendant (Multipurpose)

1. (a) Name of Post Office Attendant (Multipurpose)

(b) Classification Group “C”

(c) Mode of Appointment 100% by direct recruitment

(d) Age Above 18 years but below 28 years(relaxation in case of the ScheduledCastes or the Scheduled Tribescandidates or candidates belonging toother Special categories in accordancewith the instructions or orders issuedby the Central Government in thisregard from time to time.

(e) Minimum Qualification A Minimum of Tenth Standard Passand Eligibility or equivalent from an Education Board

recognised by the State Governmentand other skills required for specificjobs as may be decided by the Board.

(f) Selection Process On the basis of interview.

(g) Preparation of Merit list Lists of successful candidates forappointment to Office Attendant(Multipurpose) shall be prepared on thebasis of ranking accored to them inInterview for General, the ScheduledCastes, the Scheduled Tribes andOther Special categories, separately.

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The number of selected candidates tobe empanelled for recruitment shall beequal to the number of notifiedvacancies. In addition thereto, anadditional panel of selected candidatesnot exceeding 50% of the notifiedvacancies as may be decided by theBoard, with a minimum of twocandidates for each category, shall bedrawn up to meet exigencies in allcategories.

(h) Composition of the The Committee shall consist of theCommittee following persons, namely:-

(1) The General Manager and where thereis no General Manager, an officer notbelow Scale III nominated by the Boardof Regional Rural Bank - Chairman

(2) An officer of the Regional RuralBank concerned, not below Scale IIas nominated by the Board - Member

(3) An officer nominated by theSponsor Bank - Member

Note: If none of the members of theCommittee belongs to the ScheduledCastes or the Scheduled Tribes, theBoard may nominate an officer ofsuitable position belonging to theScheduled Castes or the Scheduled

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Tribes as an additional member of theCommittee.

(i) Validity of the Panel The panel shall be valid for a period ofone year.

Note :



[F. No. 7/5/2009-RRB]K.V. EAPEN, Jt. Secy.

Note : - The principal rules were published under S.O. 895(E) dated 28.9.1988and subsequent amended vide S.O. No. 642(E) dated 29.7.1998.

ANNEXURE-II

QUESTIONNAIRE ON THE REGIONAL RURAL BANKS(APPOINTMENT AND PROMOTION OF OFFICERS

AND EMPLOYEES) RULES, 2010

Question No. 1

What are the reasons that necessitiated the framing of RRBs(Appointment & Promotion of Officers and Employees) Rules, 2010 insupersession of RRB appointment and Promotion of officers’ andEmployees’ Rules, 1998 ? What are the main points of differencebetween the old rules 1998 and new rules, 2010?

Answer

On the amalgamation of Regional Rural Banks (RRBs), business leveland area of operation of amalgamated RRBs have increased substantially. ACommittee under the Chairmanship of Dr. Y.S.P. Thorat was constituted byGovernment of India (Gol) to formulate “Comprehensive Human ResourcePolicy for RRBs” which inter-alia includes categorization of RRBs/ branches,staff pattern, at Head Office / Controlling Offices / Branch level, recruitment,promotion, etc. The Committee inter-alia recommended; (i) creation of postsat Scale IV and V level for RRB officers to provide promotional avenues witha view to shoulder the higher responsibilities; (ii) Direct recruitment also uptoscale III; (iii) Fast Track Promotion; and (iv) outsourcing of non-core activities.All these factors necessitiated framing the Regional Rural Banks(Appointmentand Promotion) Rules, 2010.

Question No. 2

The RRB Act was passed in 1976 and the RRB (Appointment &Promotion of Officers and Employees) Rules were framed in 1998.Was any other rules in place before the rules were framed in the year

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1998 and if, no, why was there a delay of 22 years in the framing of therules?

Answer

Prior to 1988, the recruitments in RRBs were carried out as per theguidelines of the Government. The Appointment and Promotion Rules wereframed in 1988. These were revised in 1998 as the posts in RRBs weredesignated on the basis of the recommendations of the Equation Committee.The RRBs (Appointment & Promotion .of Officers and Employees) Rules,2010 have been framed to provide for recruitment in scale IV and V posts andalso re-designation of the group ‘B’ and ‘C’ posts.

Question No. 3

What are the differences in the appointment procedure of officersand employees in nationalized banks and RRBs in terms of qualification,experience and tests, etc.? Please provide a comparative table.

Answer

Whereas the appointment of officers and employees in RRBs is governedby rules and regulations framed by GoI in consultation with National Bank forAgriculture and Rural development and Sponsor Banks from time to timeunder section 29 (1) and (2) (ba) of RRB Act, 1976 while appointments andpromotion of staff of nationalized banks are governed by the rules andregulations of the respective banks.

The broad features are more or less similar in both cases.

Question No. 4

In the Third Schedule to the Rules, it is provided that if none ofthe members of the Committee belongs to SC / ST, the Board maynominate an officer of the suitable position belonging to SC / ST as anadditional member. The word ‘suitable position’ seems to be vague and

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whether it is not better to specify some rank, seniority or qualificationsfor the same?

Answer

The RRBs are of different size and availability of SC/ST member in aparticular grade may cause problem. Hence a broad provision has been made.

Question No. 5

Rule 9 provides that the written examination for direct recruitmentof officers and employees other than those of Group’ C’ employeesshall be entrusted to the Institute of Banking Personnel Selection(IBPS) or any agency approved by the Sponsor Bank? What are thereason(s) for allowing the Sponsor Bank to get direct recruitment doneby any other agency than IBPS? It is not better to entrust the work ofconducting the examination to IBPS so that there is uniformity recruitprocess.

Answer

The recruitment in RRBs is at a much lower scale as compared to thePublic Sector Banks. In order to provide the desired flexibility for recruitmentin RRBs the provision of recruitment through Institute of Banking PersonnelSelection (IBPS) or any other agency approved by the Sponsor Bank has beenmade.

Question No. 6

How many districts in the country have been covered by the RRBsso far? What steps are the Ministry and NABARD taking to extend theRRB network to all the rural districts in the country and what are thedifficulties faced by them in this regard?

Answer

619 districts are covered by the RRBs as on 31 March 2010.

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RBI has recently deregulated / liberalized the licensing policy forRRBs to open their branches in category III to VI centers withoutprior permission of RBI subject to fulfilling conditions - (i) CRARof at least 9%; (ii) Net NPA less .than 5%; (iii) No default inCRR/SLR for the last year; (iv) Net profit in the last financialyear.

GoI has given target since for opening 2000 new RRB branchesin uncovered blocks / districts by March 2011. RRBs have opened955 branches during the period from March, 2007 to March, 2010.

The opening of the branches also depends upon the viability of it.

Question No. 7

The Second Schedule to the Rules provides a list of the regionalrural banks in the country and their Sponsor Banks. All the RRBs aresponsored by nationalized banks and no private bank is involved in thesponsoring of rural bank. What are the reasons behind this and is it notdesirable to involve the private banks also in the RRB network?

Answer

There are already two RRBs sponsored by private sector banks, viz.,Jammu Rural Bank (Jammu & Kashmir Bank Ltd.), Mewar Aaanchalik GraminBank (taken over by the ICICI Bank Ltd., from Bank of Rajasthan Ltd.) andone RRB, viz. Kshetriya Kisaan Gramin Bank sponsored by UP CooperativeBank Ltd.

There are no restrictions for the private sector banks to sponsor RRBs.

Question No. 8

Is it true that the scope of promotion in RRBs is very limited ascompared to the sponsor banks? What are the reasons for lesser scopeof promotion in RRBs as compared to the sponsor banks?

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Answer

As per the RRBs (Appointment & Promotion of Officers and Employees)Rules, 2010, officers of RRBs can now be promoted upto scale V and this inturn has increased the promotional avenues for other categories of staff ofRRBs.

Question No.9

What are the main recommendations of the Committee constitutedunder the Chairmanship of Shri Amaresh Kumar, ED, NABARD forcomprehensive review of the model RRB Officers and Employees ServiceRegulations, 2000 and the RRB (Appointment and Promotion of Officersand Employees) Rules, 1998. How far has the Ministry of Finance /NABARD accepted the recommendations of the Committee and whatare the amendments carried out in the new rules of 2010 as a result ofthat acceptance?

Answer

The recommendations were broadly accepted by the Gol.

Major recommendations of RRBs Officers & Employees Serviceregulation 2000 are:

Change in definition of competent Authority, Decentralisation inrespect of Delegation of powers

Change in designation of group B & C staff (Office Assistant/Office Attendant)

Creation of additional scale/grades - IV & V

Increase in duration of Extraordinary Leave and Sick Leave.

Appointment and Promotion Rule

Increase in percentage of promotion from Group “C” to “B” postsfrom existing 1 0% to 25 %,

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Recruitment (Scale II & III direct recruitment of specialist 25%& 10% respectively)

Introduction of fast track promotion upto the level of scale III.

Question No. 10

What is the status with regard to the amalgamation andreorganization of RRBs and what are the reasons behind the need foramalgamation of RRBs?

Answer

As on date, there are 46 amalgamated RRBs and 36 stand alone RRBs inthe country. In order to reap benefits of a large area of operation, enhancedcredit exposure limits and to undertake diverse banking activities, theGovernment initiated a process of structural consolidation of RRBs by theamalgamation of RRBs sponsored by the same Bank within a State.

Question No. 11

What are the future plans of the Ministry / NABARD with regardto amalgamation of RRBs? How far is amalgamation affecting the careerand promotion prospects of the RRB officers and employees?

Answer

As of now, there is no plan for further amalgamation of RRBs. As perthe approved plan, RRBs sponsored by a bank within the same State havebeen amalgamated.

After amalgamation of RRBs, the scope for business development andpromotional avenues have increased. The increase in Controlling Offices willensure a close supervision and guidance.

Question No. 12

To what extent the power to make rules/regulations under section29 and 30 of the Regional Rural Banks Act, 1976 have been carried out?

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Please provide a list of such rules/regulations framed under the Actalong with their date of laying on the Table of both the Houses ofParliament?

Answer

Under section 29 and 30 of RRB Act, 1976, GoI can frame rules andregulations in consultation with NABARD and Sponsor Banks and accordingly,RRBs’ (Appointment & Promotion of Officers and Employees) Rules wereissued first in 1988. The same were revised in 1998 and thereafter in 2010.Similarly, RRB Officers and Employees Service Regulations were first issuedin 1980 and modified in 2000 and further amended in 2010.

RRBs (Appointment & Promotion of Officers and Employees) Rules,2010 were laid on the Table of Lok Sabha on 6.8.2010 and Rajya Sabha on10.8.2010.

Question No. 13

What are the recommendations of the Committee set up underthe Chairmanship of Dr. K.C. Chakrabarty, Deputy Governor, RBI toanalyse the financial of RRBs. What is the status of implementation ofthose recommendations?

Answer

The major recommendations of the Committee are as under:

40 RRBs to be recapitulated out of 82 RRB

Total amount of recap. assessed is Rs. 2,200.00 crore to be releasedin two installments, i.e. Rs. l,337.50 crore in 2010-11 andRs. 862.50 crore in 2011-12.

An additional amount of Rs 700 crore may be kept as contingenciesfor RRBs of NE & NER Region

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Increase in authorised capital of RRB from 5.00 crore to Rs. 500.00crore.

Change of Sponsor Bank may be considered.

RRBs with a networth of Rs 100 crore or more as on March2009 may be permitted to pay dividend from 01 April 2013onwards.

RBI may prescribe ‘fit and proper’ criteria for the Chairmen ofRRBs in respect of appointment & salary structure.

The Report of the Committee is being processed.

Question No. 14

The Committee has come to know that some of the sponsor bankshave withdrawn the Chairmen of RRBs before completion of theirtenure. Will this premature withdrawal not affect the performance ofthe RRBs adversely besides building lowering the morale of RRBs.

Answer

In the recent review meeting of RRB held on 25 July 2010 under theChairmanship of the Finance Minister , sponsor banks have been advised notto withdraw Chairmen before their stipulated tenure.

Question No. 15

What steps have been taken for the training and capacity buildingof RRB officers and staff?

Answer

The training requirements of RRB Officers is adequately taken care ofby NABARD and Sponsor Banks while that of the staff is taken care of by theRRBs themselves and also by their sponsor banks.

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Question No. 16

There is acute shortage of staff in most of the branches of RRBs.What is being done to address in the problem of shortage? Please givecomments?

Answer

The process of recruitment has now been expedited in all the RRBswith the issuance of new Rules, 2010.

ANNEXURE-III

STUDY NOTE OF THE MEETING OF THE COMMITTEE ONSUBORDINATE LEGISLATION, RAJYA SABHA

The Committee met at 10 A.M. on the 18th December, 2010 at Hyderabadto the Regional Rural Banks (Appointment and Promotion of Officers andEmployees) Service Rules, 2010 discuss with the representatives of AndhraBank and State Bank of Hyderabad and the concerned Regional Rural Banks,along with the representatives of NABARD, RBI and Ministry of Finance(Department of Financial Services). The following Members of the Committeewere present during the meetings.

MEMBERS PRESENT

1. Shri Kalraj Mishra –– Chairman2. Dr. K.P. Ramalingam3. Dr. Janardhan Waghmare4. Shri Syed Azeez Pasha5. Shri M.V. Mysura Reddy

SECRETARIAT

1. Shri N.K. Singh, Joint Secretary2. Shri Mahesh Tiwari, Joint Director

Representatives of Ministry of Finance(Department of Financial Studies)

1. Shri Lalit Kumar, Director2. Shri Suresh Arya, Senior Research Officer

Representatives of State Bank of Hyderabad1. Ms Renu Challu, Managing Director

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2. Shri Sudhir Garg, Chief General Manager3. Shri S. Venkataraman, General Manager

Representatives of Andhra Bank1. Shri R.Ramachandran, Chairman and Managing Director2. Shri Anil Girotra, Executive Director

Representatives of NABARD1 Shri P. Mohanaiah, Chief General Manager2 Shri E.V. Murray, General Manager3 Shri V. Maruthiam, General Manager

Representatives of Reserve Bank of India1 Shri A.S. Rao, Regional Director2 Shri M. Sanjaya, General Manager

Representative of Chaitanya Godavari Grameen BankShri V. M. Pardhasaradhi, Chairman

Representative of Rushikulya Grameen BankShri P.V.S.T.R Seshagiri Rao, Chairman

At the outset, the Chairman welcomed the Members of the Committeeand the representatives of the concerned organizations. Thereafter the Chairmanunderlined the importance of the Regional Rural Banks in tackling the menaceof poverty, unemployment and socio-economic backwardness among the ruralmasses by implementing various credit linked development schemes. Realizingthe importance of these banks he said the Committee decided to take up fordiscussion the present rules to ensure that the concerns of the Officers andEmployees of these banks are adequately addressed.

2. Managing Director, State Bank of Hyderabad informed the Committeethat the Regional Rural Banks were initially established with a view to developthe rural economy and to create an alternate channel for cooperative credit.

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From the beginning it was ensured that the Regional Rural Banks would focuson serving the rural areas and would be an integral segment of the IndianBanking system. The RRBs are jointly owned by Government of India, theconcerned State Government and Sponsor Banks.

3. Over a period of time several changes including restructuring of RRBshad taken place and as such, there was a need for urgent review of manpowerrelated issues in them. With a view to examine manpower norms in RRBs andto have standard methods of manpower assessment and planning, in 2007 theGovernment constituted a Committee under the, Chairmanship of Dr.Y.S.P.Thorat, the then Chairman of NABARD. The Committee submitted its reportin February, 2009. After consultation with NABARD and Ministry of Law andJustice the revised Regional Rural Banks (Appointment and Promotion ofOfficers and Employees) Rules, 2010 were notified. These rules were circulatedto all RRBs through NABARD and the same are required to be notified andadopted by RRBs in consultation with their respective Sponsor Bank and afterapproval of their Board.

4. The Committee appreciated the efforts made by the Sponsor Banks instrengthening rural credit infrastructure and providing micro credit to organizedgroups. The vital role played them in providing banking facilities in harsh andinaccessible areas was credit worthy. The Committee recognized the fact thatRRBs have taken deep roots and have become a sort of inseparable part ofthe rural credit structure in India. The financial viability of the RRBs has,however, been a matter of concern since the 1980s, just five years after theirexistence. The Committee noted that the Sponsoring Bank which holds 35%of the equity of the RRBs also have the critical function of providing managerialand financial assistance to ensure financial viability of the RRBs.

5. CMD, Andhra Bank informed the Committee that after coming in forceof the said rules, the promotion avenues of the RRB officers had increased.Also efforts were being made to ensure time bound promotions. As for themanpower shortages recruitments are an ongoing process and efforts are

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being made to ensure adequate staffing. Also the guidelines issued by NABARDregarding recruitment are being adhered to and corrective measures takenwhere ever need be.

6. The issues of micro credit also came up for discussion. The Committeewas apprised of the fact that the Joint Liability Groups were an issue ofconcern. The NGOs, Banks, Civil Society needed to make efforts to promotethem. Also, the Banks were providing loans to farmers who had availed of theloans waiver scheme to help them re-established them. The Committee raisedthat issue of interest rate being charged by the RRB because they wereapparently quite high. Also information about the road map for the 11th planframed by the financial institutions was also sought. The Committee notedwith concern that rural penetration of some Banks had been slow which neededto be looked into and remedial measures taken.

7. The Chairman acknowledged the difficulties faced by the Banks inensuring proper utilization of the loans given and also the large number ofvillages yet to be covered by the RRBs. However, he expressed hope thatefforts made by the Banks would give result, and ensure credit in rural areasfrom institutional sources. The Committee also acknowledged the valuablecontribution made by them in building assets for the nation and especially inrural areas.

8. The meeting adjourned at 11.15 A.M.

ANNEXURE-IV


The Committee met at 3.00 P.M. on the 21st December, 2010 at Chennaito discuss the Regional Rural Banks (Appointment and Promotion of Officersand Employees) Service Rules, 2010 with the representatives of Indian Bank,Indian Overseas Bank, representatives of the Regional Rural Banks, alongwith the representatives of NABARD, RBI and Ministry of Finance (Departmentof Financial Services). The following Members of the Committee were presentduring the meetings.

PRESENT

1. Shri Kalraj Mishra –– Chairman

MEMBERS

2. Shri Ali Anwar Ansari3. Dr. K.P. Ramalingam4. Dr. Janardhan Waghmare

SECRETARIAT


Representative of Ministry of Finance(Department of Financial Studies)Ms Sumita Dawra, Director

Representatives of Indian Overseas Bank1. Shri M. Narendra, Chairman and Managing Director2. Smt. Nupur Mitra, Executive Manager

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Representatives of Indian Bank1. Shri T.M. Bhasin, Chairman and Managing Director2. Shri V.Rama Gopal, Executive Director3. Shri Rajeev Rishi, Executive Director

Representatives of NABARD1 Shri R. Narayan, Chief General Manager2 Shri N. Krishnan, General Manager

Representatives of Reserve Bank of India1. Shri K.R. Ananda, Regional Director2. Shri M.M. Majhi, General Manager

Representative of Pandyan Grama Bank Employees AssociationShri G. S. Solaimanikam, General Secretary

Representative of Pandyan Grama Officers UnionShri K. Pitchaimuthu, President

Representatives of Neelachal Grama Bank Employees Association1. Shri Kumar Sahoo, General Secretary2. Shri Dhandia Singh, General Secretary

Representatives of Neelachal Grama Bank Officers Union1. Shri P. K. Mishra, General Secretary2. Shri S. Dash, General Secretary

Representative of Saptagiri Grameena Bank Employees AssociationShri Muni Rathinam Reddy, General Secretary

Representative of Saptagiri Grameena Bank Officers UnionShri K.Chenchi Reddy, General Secretary

Representative of Pallavan Grama Bank Employees AssociationShri A. Kacciyulla, General Secretary

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Representative of Pallavan Grama Bank Officers AssociationShri C. Jeya Kumar, General Secretary

At the outset, the Chairman welcomed the Members of the Committeeand the representatives of the concerned organizations. Thereafter, dwellingon the issue for discussion the Chairman informed that since the Committeehad already discussed the Regional Rural Banks (Appointment and Promotionof Officers and Employees) Service Rules, 2010 at its meeting in Hyderabadhence the Committee would now like to go in for an in depth discussion onthe issue areas. The Chairman also expressed the anguish of the Committeeover the continued difficulties faced by the students in getting educationalloans especially those coming from remote areas like North Eastern States.The Chairman also sought to know the steps taken to ensure hassle freeservices for priority sector lending during the course of the discussion.

2. CMD, Indian Bank informed the Committee that the process ofrestructuring and amalgamation of the RRBs was undertaken during 2005-2009. As a sequel, there was a change in the working conditions of the RRBs.This necessitated the framing of the Regional Rural Banks (Appointment andPromotion of Officers and Employees) Service Rules, 2010. Some of thepoints of difference between the Regional Rural Banks (Appointment andPromotion of Officers and Employees) Service Rules, 1998 and the rulesunder discussion were as follows: (i) As per 2010 rules there is no mentionabout consultation with the Sponsor Bank regarding creation of posts anddetermination of number of vacancies in each category of post. In the 1998rules such consultation process was provided; (ii) In the 1998 rules the powerto interpret the rules was not provided for. However, in the current rules thepower to interpret has been given to the Central Government and (iii) Thecategory of number of officers have also been increased under the presentrules from three to five (Scale I to V).

3. CMD, Indian Overseas Bank informed the Committee that IOB was theSponsor Bank for two RRBs i.e. the Pandyan Grama Bank and the Neelachal

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Gramya Bank respectively. IOB was making all efforts to improve thefunctioning of these banks and was investing in proper training and capacitybuilding of the officers and employees of these RRBs. The value of the RRBsis that the rural people see them as friend, philosopher and guide and are moreopen to trusting them than other major banks. This in effect helps in extendingdevelopment schemes to them via these RRBs. Efforts are also being made tocomputerize them and increase their efficiency.

4. The Committee thereafter sought clarifications on the following points:-whether the said Regulations had ensured effective and time bound promotions;(ii) whether their were manpower shortages in the RRBs if so, the steps takento full them; (iii) Have the Sponsor Banks being facing problems of cadreredesignation in the RRBs if so, the steps taken to rectify them; and (iv)whether there were any differences in the promotion avenues of RRB Officersand Sponsor Bank officials. The Committee also sought clarification on thepercentage of villages the RRBs have been able to cover till now and theposition on non performing assets in these banks.

5. Chief General Manager, NABARD informed the Committee that TamilNadu was the second largest State in the Self Help Group-Bank linkageprogramme after Andhra Pradesh. Infact the Government of Tamil Nadu hasbeen encouraging formation of Federation of SHGs at Village Panchayat Levelcalled Panchayat Level Federation (PLF). The PLFs are graded and thosewhich obtain A or B grading are eligible for bulk loans from the banks.Incentives are also given based on performance. However, the issue of linkingthe small/marginal. farmers, tenant farmers/oral lessees and so on with theformal banking sector was a matter of concern for NABARD and intensivediscussions were on to resolve this issue.

6. The Committee also pointed out that most of the private and foreignbanks did not cater to the actual users and gave loans to corporate bodies ordevelopment authorities and reflected in their balance sheets as loans underpriority sector. The Committee queried whether the RBI directives to private

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sector and foreign banks were applicable to them as they also had certainsocial responsibilities while giving permission to open branches. Thecontribution of foreign banks to the Rural Infrastructure Development Fundof NABARD also came up for discussion.

7. The meeting was thereafter adjourned at 4.15 P.M.

ANNEXURE-V

STUDY NOTE ON THE REGIONAL RURAL BANKS (APPOINTMENTAND PROMOTION OF OFFICERS) RULES, 2010

The Committee on Subordinate Legislation, Rajya Sabha had discussionson the Regional Rural Banks (Appointment and Promotion of Officers) Rules,2010 with the representatives of Employee Association/Unions of RRBs alongwith Ministry of Finance (Department of Financial Services) on the 20th June,2011 in Bangalore.

PRESENT


MEMBERS

2. Ms. Sushila Tiriya3. Shri Ali Anwar Ansari4. Dr. K. P. Ramalingam5. Dr. Janardhan Waghmare6. Shri Syed Azeez Pasha7. Dr. Bharatkumar Raut8. Shri M. V. Mysura Reddy

SECRETARIAT

1. Shri N. K. Singh, Joint Secretary2. Shri Mahesh Tiwari, Joint Director3. Shri R. P. Shukla, Assistant Director

Representatives of the Karnataka Vikas Grameena BankOfficers’ Federation

1. Shri S. A. Neeralagi, President2. Shri M. V. Karer, General Secretary

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(Representative of Ministry of Finance(Department of Financial Services)Shri Tarsem Chand, Director

2. The Chairman, in his opening remarks, enquired about the problemsfaced by the RRB employees and their suggestions for improvement oramendment in the rules, if any.

3. The Committee was informed that the employees working in RRBs haveno proper promotion opportunities and that some people retire in the samepost in which they join. There is also the problem of lack of manpower inRRBs and that many branches have one manager and one clerk. Payment ofMNREGS wages and issue of Kisan Credit Cards (KCC) strain the resourcesof RRBs further. Regarding the pay and allowances, employees of RRBs haveDearness Allowance and basic pay at par with sponsor banks but there is nopension scheme for RRB employees. There is high attrition rate and the youthsare not attracted to RRBs. There is a suggestion that qualification should belessened so that local people can be inducted in the service and that theRecruitment rules are further need to be strengthened.

4. Karnataka Vikas Grameena Bank Officers’ Federation submitted beforethe Committee that there is urgent need to raise the retirement age of theofficers in the RRBs from 60 to 65 years or at least upto 62 years. As thebanking sector is undergoing a paradigm shift in its role and functions as aresult of increased competition and growing consumer awareness, applicationof IT in banking has become important. With the expansion of and easy accessto the digital communication across the country at an affordable price, thecustomers’ expectation for efficient services in banking has gained momentum.It would be very difficult for RRBs to survive if value added services are notprovided to its customers. Hence immediate steps need to be taken to mergeRRBs with the sponsor bank.

ANNEXURE-VI

STUDY NOTE ON THE REGIONAL RURAL BANKS (APPOINTMENTAND PROMOTION OF OFFICERS) RULES, 2010 AND THE

CURRENT STATUS OF PRIORITY SECTOR LENDING

The Committee on Subordinate Legislation, Rajya Sabha had discussionson the Regional Rural Banks (Appointment and Promotion of Officers) Rules,2010 and the current status of priority sector lending with the representativesof Canara Bank, Syndicate Bank, Vijaya Bank, Corporation Bank, State Bankof Mysore and RRBs sponsored by them along with the NABARD and theMinistry of Finance (Department of Financial Services) on the 21st June, 2011in Bangalore.

PRESENT


MEMBERS

2. Ms.Sushila Tiriya3. Shri Ali Anwar Ansari4. Dr. K. P. Ramalingam5. Dr. Janardhan Wagwnare6. Shri Syed Azeez Pasha7. Dr. Bharatkumar Raut8. Shri M. V. Mysura Reddy

SECRETARIAT


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Representative of the Ministry of Finance (Department ofFinancial Services)Dr.Tarsem Chand, Director

Representative of NABARDDr.Venkatesh Tagat, CGM

Representatives of Canara Bank & its RRB1. Smt. Archana S. Hargava, ED2. Shri K. S. Prabhakar Rao, Chairman, Pragathi Gramin Bank

Representatives of Corporation Bank & its RRB1. Shri Ramnath Pradeep, CMD2. Shri Narendra Singh, ED3. Shri Ashwani Kumar, ED4. Shri A. P. Suresh, Chairman, Chiko Bank

Representatives of State Bank of Mysore & its RRB1. Shri Dilip Mavinkurve, MD2. Smt. Ambujakshi L T, Chairperson, CKGB

Representatives of Vijaya Bank & its RRB1. Shri H. S. Upendra Kamath, CMD2. Smt. Shubhalakshmi Panse, ED3. Shri Govind N. Dongre, Chairman, RRB

2. The Chairman, in his opening remarks, enquired about issues such asthe scope of promotion in RRBs as compared to sponsor banks; status withregard to the amalgamation and reorganization of RRBs and the reasons behindthe need for amalgamation of RRBs; steps being taken for the training andcapacity building of RRB officers and staff; the problem of acute shortage ofstaff in most of the branches of RRBs and what is being done to address theproblem of shortage; and the disbursement of priority sector loans with specialreference to micro credit to farmers.

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3. The sponsor banks expressed that unless the business of RRBs andbranches expand, there is a problem in getting people promoted. Sponsorbanks also stated that there is pension in RRBs but conceded that it is a minimalamount. They want that the financial burden/implications of providing pensionto RRB employees need to be examined.

4. The North Malabar Gramin Bank in their reply stated that there are nolady SC/ST officers in Scale IV cadre because none of the lady SC/ST officersfall in the zone of consideration for promotion. They further informed that tohelp the tribals, a special settlement project has been prepared under theguidance of NABARD and is being implemented through exclusive satelliteoffice. The other initiatives taken by the bank are formation of Farmer's Cluband imparting extension education programme for diversified economicactivities.

ANNEXURE-VII

STUDY NOTE ON THE REGIONAL RURAL BANKS (APPOINTMENTAND PROMOTION OF OFFICERS) RULES, 2010 AND THE

CURRENT STATUS OF PRIORITY SECTOR LENDING

The Committee on Subordinate Legislation, Rajya Sabha had discussionson the Regional Rural Banks (Appointment and Promotion of Officers) Rules,2010 and the current status of priority sector lending with the representativesof North Malabar Bank and South Malabar Bank along with the NABARD andthe Ministry of Finance (Department of Financial Services) on the 251h June,2011 in Bangalore.

PRESENT


MEMBERS

2. Ms. Sushila Tiriya3. Dr. K.P. Ramalingam4. Dr. Janardhan Waghmare5. Dr. Bharatkumar Raut

SECRETARIAT


Representative of the Ministry of Finance (Department of FinancialServices)Shri P. Vinayagam, Deputy Secretary

Representative of NABARDShri K. C. Shashidhar, CGM

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Representative of Canara BankShri N. Narasa Reddy, GM, Canara Bank

Representative of Syndicate BankShri G. C. Mishra, GM

Representative of South Malabar Gramin BankShri G. Pandurangan, Chairman

Representative of North Malabar Gramin BankShri V. K. Saigal, Chairman

2. The Chairman, in his opening remarks, enquired about issues such asthe scope of promotion in RRBs as compared to sponsor banks; status withregard to the amalgamation and reorganization of RRBs and the reasons behindthe need for amalgamation of RRBs; steps being taken for the training andcapacity building of RRB officers and staff; the problem of acute shortage ofstaff in most of the branches of RRBs and what is being done to address theproblem of shortage; and the disbursement of priority sector loans with special.reference to micro credit to farmers.

3. The sponsor banks expressed that unless the business of RRBs andbranches expand, there is a problem in getting people promoted. Sponsorbanks also stated that there is pension in RRBs but conceded that it is a minimalamount. They want that the financial burden/implications of providing pensionto RRB employees need to be examined.

4. North Malabar Gramin Bank, on the 25th July, 2011, furnished that thereare no lady SC/ST officers in Scale IV cadre because there is no lady SC/STofficer in the zone of consideration for promotion. To help the tribals, a specialsettlement project has been prepared under the guidance of NABARD and isimplemented through exclusive satellite office. Formation of Farmers’ Cluband imparting extension education programmes for diversified economicactivities are other initiatives.

ANNEXURE-VIII


The Committee met at 10.00 A.M. on the 27th September, 2011 in Mumbaito discuss with the representatives of Dena Bank, Bank of India, Central Bankof India, Bank of Baroda, Union Bank of India alongwith the Ministry ofFinance (Department of Financial Services) on the Regional Rural Banks(Appointment and Promotion of Officers and Employees) Service Rules, 2010and priority sector lending schemes with special reference to micro credit tofarmers. The following Members of the Committee were present in themeeting.-

PRESENT


MEMBERS

2. Shri Vijay Jawaharlal Darda3. Shrimati Maya Singh4. Shri Prakash Javadekar5. Shri Ali Anwar Ansari6. Dr. K.P. Ramalingam7. Dr. Janardhan Waghmare8. Shri Bharatkumar Raut9. Shri M.V. Mysura Reddy

10. Shri Ahmad Saeed Malihabadi

SECRETARIAT

1. Shri N.K. Singh, Joint Secretary2. Shri Mahesh Tiwari, Joint Director3. Shri R.P. Shukla, Assistant Director

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Representatives of Dena Bank1. Shri D.L. Rawal, Chairman & Managing Director2. Shri T.R. Chawla, Chief General Manager

Representatives of Bank of India1. Shri N. Seshadri, Executive Director2. Shri A.P. Ghugal, General Manager

Representative of Bank of BarodaShri N.S. Srinath, Executive Director

Representatives of Central Bank of Indial. Shri M.V. Tanksale, Chairman & Managing Director

2. Shri Malay Mukherjee, Executive Director

Representatives of Union Bank of India1. Shri M.V. Nair, Chairman & Managing Director2. Shri S.K. Jain, Executive Director

Representatives of Ministry of Finance (Department ofFinancial Services)

1. Shri Tarsem Singh, Director2. Shri Ambrik Singh, Under Secretary

Representatives of NABARD1. Shri V. Ramakrishna Rao, Executive Director2. Shri A. Lahiri, Chief General Manager

At the outset, the Chairman while initiating the discussion stated thatRegional Rural Banks are an important component of the banking system asthey are the face of the banking system in rural and backward areas. Thereforeproper working conditions of the employees of these RRBs was important forthe proper working if these entities. He thereafter sought clarifications on thefollowing issues i.e. (i) Employees working in RRBs have no proper promotion

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opportunities. Some employees even retire in the same post in which theyjoined; (ii) There is lack of manpower in RRBs. Many branches have onemanager and one clerk. Payment of MNREGS wages and issue of KisanCredit Cards (KCC) strain the resources of RRBs further; (iii) DearnessAllowance and basic pay at par with sponsor banks but there is no pensionscheme for RRB employees; (iv) There is high attrition rate and the youths arenot attracted to RRBs; and (v) whether it is feasible to relax the qualificationso that local people can be inducted.

2. The CMD, Dena Bank, informed the Committee that it had two RRBs atpresent with it. These were the Dena Gujarat Gramin Bank and DurgRajnandagaon Gramin Bank, moreover both these RRBs were profit making.It was also stated that as compared to the sponsor bank which have an allIndia presence the RRBs area of operation is restricted. Further since most ofthe branches of RRBs are located in rural and semi-rural areas their businessvolume is also relatively low. As such their upgradation of a branch to nextcategory takes a much longer time. There are less number of branches ofRRBs as they operate in a compact area. These are the factors which hampertheir promotion avenues. Likewise Bank of India informed that they had 5RRBs with them. They informed that Dr. K.C. Chakrabarty report’srecommendations are being implemented in consultation with the Governmentof India and the concerned State Governments. As per the arrangement firstthe concerned State Government would release 15% of the amount neededfor recapitalization of the RRB, thereafter the sponsor bank would release itsshare of 35% and then Government of India would release the remaining50%. As of today the process of recapitalization was at various stages indifferent States and the process would be completed soon.

3. The Executive Director, Bank of Baroda informed that they had 5 RRBswith them and these were functional in 5 States. Overall these 5 RRBs had1223 branches covering 46 districts in the said five States. Out of these 5RRBs, Baroda Gujarat Gramin Bank didn’t need any recapitalisation of itsfinancial position was already strong. As for the remaining 4 RRBs the process

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of recapitalisation was underway. This process would help these RRBsovercome their financial problems and also provide funds for loan disbursalwhich coupled with sound investment policy would help in reviving theseRRBs. It was also informed that the Non-Performing Assets of these RRBswere less than that of the sponsor bank because of the good repayment habitof the people in the rural areas. The Committee was informed about the differentpriority sector lending schemes operational in Bank of Baroda and also in itsconcerned RRBs. The efforts made by them to fulfil their commitment underthe financial inclusion target were also ‘brought before the Committee.

4. The CMD, Union Bank of India in his presentation informed that earlierit was operating 3 RRBs in the State of Uttar Pradesh. In the year 2005 thesewere merged and one single entity named ‘Kashi Gomti Samyut Gramin Bank’had been created. It was also operating one RRB in Madhya Pradesh namedRewa Sidhi Gramin Bank. It was informed that as a result of the amalgamationthe immediate challenge faced by the Bank was of cultural and emotionalintegration of the erstwhile units into the new units. However the benefits ofamalgamation far out-weigh the problems and it in the longer run has resultedin better utilization of resources and more profits for these entities. Todaythese RRBs had also become an important platform for the sponsor banks formeeting these priority sector targets as they have a better reach and networkin the rural and backward areas and are better placed to dispense the loans andpolicies in these areas. The local people tend to have a sense of attachmentwith these entities which translated into healthy repayments and low NPAsfor the RRBs.

5. The CMD, Central Bank of India informed that it had 7 RRBs with itand the most pressing problem today is not only of Staff shortage but also ofincreasing the capacity of the existing staff. This was because when theseRRBs were set up they had very limited objectives and so the training of theirstaff was also simple. However over a period of time the work of these RRBskept increasing but adequate training provisions were not made. Though in

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the last few years a sustained effort by the Ministry of Finance, NABARD andthe concerned banks has helped to augment the staff strength of these RRBs.This has lead to increased efficiency and greater customer satisfaction. Itwas informed that out of 640 districts in the country, 525 districts had alreadybeen covered by the RRB network.

6. Concluding the discussion, the Chairman reflected the views of theCommittee that today RRBs have a presence in almost all the districts of thecountry but qualitative differences need to be brought in its functioning. Todayeven the private banks are venturing onto opening RRBs in the country. Thisshows that rural economy holds lots of potential and the State owned banksmust ensure that they are the ahead of the private entities in tapping the ruralareas.

7. The meeting thereafter concluded with a mutual vote of thanks.

ANNEXURE-IX


The Committee met at 10.00 A.M. on the 29th September, 2011 at Goa todiscuss with the representatives of State Bank of India alongwith the Ministryof Finance (Department of Financial Services) on the Regional Rural Banks(Appointment and Promotion of Officers and Employees) Service Rules, 2010and priority sector lending schemes with special reference to micro credit tofarmers and State Bank of India Officers Service Rules, 1955 - Implementationof 128th Report of COSL, Rajya Sabha. The following Members of theCommittee were present in the meeting:-

PRESENT


MEMBERS

2. Shri Prakash Javadekar3. Shri Ali Anwar Ansari4. Dr. K. P. Ramalingam5. Dr. Janardhan Waghmare6. Shri Bharatkumar Raut7. Shri Ahmad Saeed Malihabadi

SECRETARIAT


Representatives of State Bank of India1. Shri Krishna Kumar, Managing Director2. Shri J. K. Sinha, Chief General Manager3. Shri A. K. Garg, Chief General Manager

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Representative of NABARD1. Shri S. D. Kulkarni, General Manager

2. At the outset, the Chairman highlighted the fact that the State Bank ofIndia was having the largest number of RRBs sponsored by it and the stepstaken by them to enhance the working of these RRBs was of crucial importance.He thereafter sought clarifications on the following points i.e. (i) Employeesworking in RRBs have no proper promotion opportunities, Some employeeseven retire in the same post in which they joined. Steps by the Ministry/sponsor banks in this regard; (ii) There is lack of manpower in RRBs. Majorityof branches have one manager and one clerk. Payment of MNREGS wagesand issue of Kisan Credit Cards (KCC) strain the resources of RRBs further.What has been done by the Ministry & SBI to provide adequate manpower tothe RRBs; (iii) There is high attrition rate and the youths are not attracted toRRBs. What steps have been taken to solve this problem; and (iv) what arethe problems, if any, faced by RRBs in achieving priority sector targets andwhat steps are taken to overcome these problems.

3. Managing Director, State Bank of India informed that they weresponsoring 18 RRBs in 17 States having 2817 branches with a total numberof 11848 employees. These RRBs are operational in 126 districts of the country.In the financial year 2010-11, 154 new branches had already been opened andanother 150 branches would be made operational in the current financial yearitself. It was also informed that all the RRBs sponsored by SBI were profitmaking though due to implementation of the IX Bipartite wage settlement theprofit margins of the RRBs were negatively effected. Though it was fact thatthe RRBs were facing manpower shortages but efforts have been made toensure that the operational efficiency and smooth functioning of the banks arenot affected. This has been done by-way of introduction of Core BankingSolutions in all the RRBs. The training of the employees has also been stressedupon and to this end training programmes have been designed in collaborationwith Agriculture Banking College at Pune, BIRD centres at Lucknow,Mangalore and Bolpur etc.

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4. The Committee was also informed that the RRBs have been playing amajor role in priority sector obligations also. The RRBs gave a total ofRs. 1534 crores of loans to the weaker sections during the Financial year2010-11. In fact 54% of the total advances of RRBs are towards weakersections, which is well above the bench mark set by the Reserve Bank ofIndia. The RRBs have also started an intensive campaign to associate self-help groups with them and in the last year the number of such SHGs associatedwith these RRBs nearly doubled. In regard to status of recapitalization in theseRRBs the Committee was informed that recaptilization has been spread out intwo financial years. The target RRBs have also been identified and theBanks share has already been released. Now the concerned State Governmentshave to contribute their share of the money for recaptilization of theseRRBs.

5. In regard to the status of implementation of the 1281h Report of theCommittee on Subordinate Legislation, Rajya Sabha on the SBI Officers ServiceRules, 1992, the Committee was informed that keeping in view the divergentview of GOI, the Bank approached the then Additional Solicitor General ofIndia and the excerpts of his opinion are mentioned as under:

i) It is permissible for the State Bank of India to frame SBI Officerss’Service Rules in exercise of powers conferred by Section 43(1)of the SBI Act. In fact, the statutory powers to frame SBI Officers’Service Rules flows out of the provisions of Section 43(1) of SBIAct only. This can be determined either by an order or by rules orby regulations.

ii) Accordingly, the SBI Officers’ Service Rules are statutorily requiredto be framed in exercise of powers under Section 43(1) and notunder Section 50 of SBI Act.

The above opinion of the Additional Solicitor General of India has beensent to the GOI and their advices are awaited.

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7. Concluding the discussion, the Chairman appreciated the working ofthe RRBs sponsored by SBI and the efforts made by them to meet their prioritysector obligations. He also asked the Ministry to expedite the process ofimplementing the Committees recommendations as contained in its 1281h Reportand any undue delay should be avoided at all cost.


ANNEXURE-X

STUDY NOTE OF THE MEETING OF THE COMMITTEE ONSUBORDINATE LEGISLATION, RAJY A SABHA

The Committee met at 10.00 A.M. on the 01st October, 2011 at Goa todiscuss with the representatives of Bank of Maharashtra alongwith the Ministryof Finance (Department of Financial Services) on the Regional Rural Banks(Appointment and Promotion of Officers and Employees) Service Rules, 2010and priority sector lending schemes with special reference to micro credit tofarmers. The following Members of the Committee were present in themeeting:-

PRESENT

1. Shri M.V. Mysura Reddy –– in the Chair

MEMBERS

2. Shri Prakash Javadekar3. Shri Ali Anwar Ansari4. Dr. K.P. Ramalingam5. Dr. Janardhan Waghmare6. Shri Bharatkumar Raut7. Shri Ahmad Saeed Malihabadi

SECRETARIAT


Representatives of Bank, of Maharashtra1. Shri A. S. Bhattacharya, Chairman & Managing Director2. Shri A. S. Banerjee, Chief General Manager

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Representative of NABARDShri S.D. Kulkarni, General Manager

Representative of Ministry of Finance (Department ofFinancial Services)Shri Tarsem Singh, Director

2. At the outset, the Convener highlighted the fact that Regional RuralBanks today were playing a very important role in helping their sponsor banksreduce their Non-Performing Assets and also in meeting their priority sectorlending obligations. He thereafter sought clarifications on the following pointsi.e. (i) employees working in RRBs have no proper promotion opportunities.Some employees even retire in the same post in which they joined. The stepstaken by the Ministry/sponsor banks in this regard; (ii) The Committee notedthat there is lack of manpower in RRBs and many branches have one managerand only one clerk in position. Payment of Mahatma Gandhi National RuralEmployment Guarantee Scheme wages and issue of Kisan Credit Cards (KCC)strain the resources of RRBs further. What has been done by the Ministry/sponsor bank to provide adequate manpower to the RRBs; (iii) There is highattrition rate and the youths are not attracted to RRBs. What steps have beentaken to solve this problem; and (iv) What are the problems, if any, faced byRRBs in achieving priority sector targets and what steps are taken to overcomethese problems.

3. The CMD, Bank of Maharashtra informed the Committee that at presentthere was one RRB with them i.e. the Maharashtra Gramin Bank. In the year2009, with the aim to consolidate their financial strength and to enhance publicconfidence and undertake commercial activities & other new business activitiesfor continued self sustainability & viability with continued growth in the presentcompetitive era. Three RRBs i.e. Marathwada Gramin Bank, Aurangabad-Jalna Gramin Banle and Thane Gramin Bank were merged to create‘Maharashtra Gramin Bank’. This step has helped to create more promotionavenues and larger financial base which would make it financially sustainable.

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4. It was further informed that to handle the problem of staff shortage, thefollowing steps have been taken i.e. (i) Assessment of the position of branchcategorization on basis of criteria of average business for last two years laiddown by NABARD for RRBs; (ii) Analyzing the position of branchcategorization on the basis of business performance followed by assessing &confirming the manpower requirements for all posts for direct recruitment &promotion on the basis of Thorat Committee recommendations and (iii) processof recruitment in MGB has been put on fast track process to fill up vacantposts. Promotions have also been given to help fill up posts in the Officercadre. It is hoped that with this exercise in process the problem of staffshortage would be suitably handled.

5. As for the social responsibilities of Bank of Maharashtra is concerned itwas informed that a number of initiatives had been taken like for examplecreation of a Trust named Mahabank Agriculture Research and RuralDevelopment Foundation, This Trust undertakes various projects and villageimprovement programs at different places. Also a NGO formed in associationwith National Institute of Bank Management named Gramin Mahila Va BalakVikas Mandal is actively involved in formation, nurturing, training and ensuringlinkages of SHGs to bank credit. These initiatives have helped the Bank tomeet its priority sector lending obligations also. The Bank has establishedMahabank Self Employment Training Institute for providing training to ruralyouth and women to enable them to acquire skills for self employment. Likewisethe bank also provides counseling to fanners on various issues like agriculture,animal husbandry etc via its Mahabank Vidarbha Shetkari Jagruti Abhiyan.

6. Concluding the discussion, the Chairman appreciated the efforts madeby Bank of Maharashtra in the rural areas of Maharashtra. The steps taken bythe Bank were commendable keeping in view the fact that number of farmersuicides had been reported in the areas where these initiatives were underway.However more efforts are needed to be made to augment the rural economyin a better ways.


ANNEXURE-XI


The Committee met at 10.00 A.M. on the 24th February, 2012 at Kolkatato discuss with the representatives of Allahabad Bank, United Bank of India.and RRBs sponsored by them alongwith the Ministry of Finance (Departmentof Financial Services) on the Regional Rural Bank (Appointment and Promotionof Officers and Employees) Rules, 2010, Priority Sector Lending Schemeand Complaint Redressal Mechanism for Employees of Banks. The followingMembers of the Committee were present in the meeting:-

PRESENT


MEMBERS

2. Shri Ali Anwar Ansari3. Dr. K.P. Ramalingam4. Dr. Janardhan Waghmare5. Shri Ahmad Saeed Malihabadi

SECRETARIAT

1. Shri N.K. Singh, Joint Secretary2. Shri Mahesh Tiwari, Joint Director3. Shri R.S. Rawat, Deputy Director

Representative of Allahabad BankShri J.P Dua, Chairman & Managing Director

Representatives of United Bank of India1. Shri Bhaskar Sen, Chairman & Managing Director2. Shri Ranjan Kumar Mohanty, General Manager

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Representative of Bangiya Gramin Vikas BankShri Rana Majumdar, Chairman

Representative of Allahabad UP Gramin BankShri Sudhanshu Gaur, Chairman

Representatives of NABARD1. Shri S. Padmanabhan, Chief General Manager2. Shri R.K. Thanvi, Deputy General Manager


1. Dr. A. Bhattacharya, Joint Secretary2. Shri Amrik Singh, Under Secretary

2. At the outset, the Chairman briefed the organisations about the mandateof the Committee and about its functions. He also highlighted the importanceof the Regional Rural Banks in the rural economy and their significance inbuilding the rural infrastructure. He then sought clarifications on the followingissues i.e. (i) Employees working in RRBs have no proper promotionopportunities. Some people even retire in the same post in which they join;(ii) There is lack of manpower in RRBs. Many branches have one managerand only one clerk. Payment of MNREGS wages and issue of Kisan CreditCards (KCC) strain the resources of RRBs further; (iii) Dearness Allowanceand basic pay is at par with sponsor banks but there is no pension scheme forRRB employees; (iv) There is high attrition rate and the youths are not attractedto RRBs; and (v) whether it is feasible to relax the qualification so that morenumber of local people can be inducted in the service.

3. The CMD, United Bank of India in its presentation informed that initiallyit was sponsoring 11 RRBs in four States. However, after the decision wastaken to amalgamate the RRBs today it had 4 RRBs in States of West Bengal,Assam, Tripura and Manipur. After the amalgamation process posts of Scale

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1 V & V have been created which have increased the promotional avenues ofthe RRB employees. It has also been decided to further amalgamate the RRBsand this would help to further increase the promotion avenues. He also informedthe Committee that as per the recommendations of Dr. K.C. Chakrabartyreport, recapitalization of the RRBs was underway. There have been somedelays in release of share money by concerned State Governments and alsothe Union Government but they were hopeful that things would be sorted outin the near future.

4. UBI further informed that for premature withdrawal of the Chairman ofthe RRBs permission of NABARD is required and normally such requests arenot acceded to by them. Only in exceptional cases where the performance ofthe Chairman of the RRB is not satisfactory or when the services of theChairman are required by the sponsor bank such requests are entertained.NABARD is quite vigilant in this regard as such unmerited removal of theChairman tends to affect the morale of the whole organisation.

5. The CMD, Allahabad Bank in its presentation informed the Committeethat it was sponsoring two RRBs located in Uttar Pradesh and Madhya Pradesh.It was noteworthy that both these RRBs were profit making and didn’t haveany accumulated losses. As for handling the manpower shortages in the RRBsthe Bank had undertaken an assessment study of the requirements of theseRRBs as per Thorat Committee recommendations and filling up of vacanciesin different scales was underway. It was hoped that the process would becompleted in a few months time. The Committee was also informed that theBank had also drawn up a project for further expansion of the RRBs. This hadbecome more feasible after the Reserve Bank relaxed the guidelines for openingnew branches in tier 3 to 7 centres. The RRBs today have become an importantvehicle for rural marketing. The RRB branches besides focussing on micro-finance also provide insurance products to their customers. Further all theRRBs have now made available various credit products to all segments of thesociety whether from farm or non-farm sector which has helped to revive theimportance of the RRBs in the rural economy.

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6. Chief General Manager, NABARD then informed the Committee aboutthe steps taken to handle customer grievance in the RRBs and also the grievanceof the employees of the RRBs. It highlighted the role of NABARD in thewhole set up and the steps taken to bring uniformity in the RRBs with respectto implementation of the grievance redressal mechanism for their customers.

7. Concluding the discussion, the Chairman expressed his surprise overthe fact that Allahabad Bank which had it’s headquarter in West Bengal didn’thave any RRB in the State. However, he expressed satisfaction over theperformance of the RRBs sponsored by them and hoped that branch expansionundertaken by Allahabad bank would start soon. He expressed concern overthe delay in release of funds by the Central Government for recapitalization ofthe RRBs sponsored by UBI and urged the Ministry of Finance to expedite theprocess so that the revival of these RRBs is on a fast-track.


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ANNEXURE-XII


The Committee met at 12.30 P.M. on the 25th February, 2012 at Kolkatato discuss with the representatives of UCO Bank and RRBs sponsored bythem alongwith the Ministry of Finance (Department of Financial Services)on the Regional Rural Bank (Appointment and Promotion of Officers andEmployees) Rules, 2010, Priority Sector Lending Scheme and ComplaintRedressal Mechanism for Employees of Banks. The following Members ofthe Committee were present in the meeting:-

PRESENT

1. Dr. Janardhan Waghmare –– in the Chair

MEMBERS

2. Shri Ali Anwar Ansari3. Dr. K.P. Ramalingam4. Shri Ahmad Saeed Malihabadi

SECRETARIAT

1. Shri N.K. Singh, Joint Secretary2. Shri Mahesh Tiwari, Joint Director3. Shri R.S. Rawat, Deputy Director

Representatives of United Cooperative Bank (UCO Bank)1. Shri Arun Kaul, Chairman & Managing Director2. Shri P. Mitra, Chairman, Paschim Banga Gramin Bank

Representatives of NABARD1. Shri S. Padmanabhan, Chief General Manager2. Shri R.K. Thanvi, Deputy General Manager

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2. At the outset, the Convenor while initiating the discussion informed thatthe Committee had taken up for examination the RRB (Appointment andPromotion of Officers and Employees) Service Rules, 2010 and had alreadyheard the views of some public sector banks. Priority Sectors lending beingan important part of bank credit delivery in India, the RBI requires all publicand private sector banks to direct a fixed percentage of their lending to “prioritysectors,”. India’s priority sector lending requirements are part of a policyeffort by the Reserve Bank of India to allocate credit toward marginal andhigher risk sectors. The Committee is aware that for the banks to achievetheir targets and for efficient customer service and satisfaction, the moraleand motivation of the employees of banks is very important and that a robustand sound system of grievance redressal for employees is of utmost importance.He also sought to know about the policy for complaints redressal mechanismfor customers and whether they have any time schedule within which thecomplaints of employees are to be redressed.

3. The CMD, UCO Bank informed that they were sponsoring five RRBs inRajasthan, Odhisa, Bihar, West Bengal and Madhya Pradesh with total staffstrength close to 4000 employees and 800 plus branches. They also informedthat the RRBs sponsored by them were not able to carry out all therecapitalization steps required to be taken as provided in the Dr.K.C.Chakrabarty report. This was because the State Governments had still torelease their share of the money. This was in a way hampering their revival;however, talks were underway on this issue. The Committee was also informedthat the Non-Performing Assets of the their RRBs were not quite satisfactoryand ranged from 4% to 13% for different RRBs. This was also one areawhere urgent steps were needed to be taken. It was due to this high NPAs

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that branch expansion of these RRBs were not feasible. Though the bank wastaking steps to manage the situation and in fact had even been able tosignificantly reduce NPAs in the last few years yet more work needed to bedone in this area.

4. The Committee was informed about the socio-economic initiativeslaunched by UCO Bank. This included schemes like ‘UCO Utthaan Scheme’for upliftment of BPL households in selected villages. In these villages BPLDevelopment Committees have been formed between villages, bank officialsand government officials for providing not only loans but also assistance forproper utilization of the loan money. The Bank had also ensured that loanapplications under priority sector were cleared without delays and for thisthere was daily monitoring of daily disbursals under the agriculture and prioritysector loans. However, it was hoped that the definition of ‘priority sector’would soon be revised to take into consideration today’s ground realities becauseat present to achieve the priority sector targets tends to get difficult. TheCommittee was also informed about the grievance redressal mechanism inplace in UCO Bank and also it’s concerned RRBs.

5. Concluding the discussion, the Convenor observed that the governmentwas in the process of redefining the priority sector definition and the banksshould try to ensure that their views are also taken into consideration. He wasof the opinion that Ministry of Finance must be taking steps to involve all theconcerned stake holders in this regard. The Committee also sought detailsabout the number of loans disbursed to weavers and small artisans in WestBengal as it was crucial for revival of the craft industry in the State.


ANNEXURE-XIII

STUDY NOTE OF THE MEETING OF THE COMMITTEE ONSUBORDINATE LEGISLATION, RAJYA SABRA

The Committee met at 09.30 A.M. on the 26th June, 2012 at Dharmashalato discuss with the representatives of Oriental Bank of Commerce, PunjabNational Bank, NABARD alongwith the Ministry of Finance (Department ofFinancial Services) on the Regional Rural Banks (Appointment and Promotionof Officers and Employees) Service Rules, 2010 and grievance redressalmechanism for customers as well as employees; the priority sector lendingschemes with special reference to credit to small/marginal farmers. Thefollowing Members of the Committee were present in the meeting.-

PRESENT

1. Shrimati Maya Singh –– Chairman

MEMBERS

2. Shri Jesudasu Seelam3. Dr. K.P. Ramalingam4. Dr. Janardhan Waghmare5. Dr. Bharatkumar Raut6. Shri Ahmad Saeed Malihabadi7. Shri Shantaram Naik8. Shri Ali Anwar Ansari9. Shri Rabinarayan Mohapatra

SECRETARIAT


Representatives of Oriental Bank of Commerce1. Shri S.L. Bansal, Chairman cum Managing Director2. Shri V. Kannan, Executive Director

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Representatives of Punjab National Bank1. Smt. Usha Ananthasubramanian, Executive Director2. Shri K.S. Phogat, General Manager

Representatives of NABARD1. Shri Naresh Gupta, Chief General Manager2. Shri K.S. Raghupathi, Deputy General Manager

Representatives of RBI1. Shri Jasbir Singh, Regional Director2. Shri R. Gurumurthy, General Manager

Representatives of Ministry of Finance (Department of FinancialServices)


2. At the outset, the Chairperson informed that the Committee had takenup for examination the RRB (Appointment and Promotion of Officers andEmployees) Service Rules, 2010 and had already heard the views of somepublic sector banks. Priority Sectors lending being an important part ofbank credit delivery in India, the RBI requires all public and private sectorbanks to direct a fixed percentage of their lending to “priority sectors,”. India’spriority sector lending requirements are part of a policy effort by the ReserveBank of India to allocate credit toward marginal and higher risk sectors. TheCommittee is aware that for the banks to achieve their targets and for efficientcustomer service and satisfaction, the morale and motivation of the employeesof banks is very important and that a robust and sound system of grievanceredressal for employees is of utmost importance. She also sought to knowabout the policy for internal complaints redressal mechanism for employeesof Oriental Bank of Commerce and Punjab National Bank and whether theyhave any time schedule within which the complaints of employees are to beredressed.

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3. The CMD, Oriental Bank of Commerce in his presentation informed theCommittee that they had a duly approved Grievance Redressal Policy and itcovered all the points that were there in the Model Policy for GrievanceRedressal for banks approved by the Management Committee.of Indian BanksAssociation and Reserve Bank of India. The basis of this policy is that thebank employees work in good faith and without prejudice to the interest of thecustomers. The Bank has zero tolerance for complaints regarding misconductand misbehaviour by staff. This starts right from placing the complaint registerat a prominent place in the banks to having a call centre and on-line facilitywhere complaints can be registered. These complaints are monitored in a timebound manner and accountability is fixed at each level to ensure that thecomplaints are duly taken care of. Likewise the Committee was informed thatdue importance is also given to grievance redressal of the employees of theirorganisation. In fact the last working day of each month has been fixed as theStaff Grievance Redressal Day. On this day the DGM (HRD) and concernedofficials make themselves available at the Head Office to resolve staffgrievances. The efficiency of this system can be noted from the fact that in2011-12 a total of 56 complaints were received and out of this only 5 remainpending as of date.

4. The Committee was also informed that Oriental Bank of Commerce hadno RRBs under it. Despite this it had been able to meet its priority sectorobligations due to its strong emphasis on rural areas and was focussing onagriculture sector for giving loans. It had a number of agriculture. specificschemes under which the processing related charges are considerably reducedor even totally waived off to motivate the framers to avail them. The Bank hadstarted a project named ‘Oriental Bank Grameen Project’ under which financesare provided to rural poor under the home grown model of micro finance. It.is been implemented through Joint Liability Groups consisting of 5 membersper group preferably women. It was also informed that the Bank was alsoconsidering setting up a RRB as it would help increase its presence in ruralareas.

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5. The Executive Director, Punjab National Bank, informed that they had 6RRBs with them spread out in 5 States. Keeping in view their experience ofhandling these RRBs he felt that the following amendments may be introducedin the rules i.e. (i) The minimum period of service in a particular Scale ofpromotion may be introduced to 4 years from 5-6 years upto Scale-Ill to bringyounger and energetic work force at higher levels; (ii) At least 25% of thecandidates may be kept in the waiting list on promotion; (iii) Minimum periodof preceding 4 years may be taken into account for looking into adverseremarks before promotion; (iv) the sealed cover process should be co-terminuswith the commencement of the next promotion process; and (v) The minimumqualifying marks in interview should be 50%. However, for candidates belongingto SC or ST categories, it should be 40%.

6. Concluding the discussion, the Chairperson agreed that the issuespertaining to the service conditions of the Officials and employees of the‘RRBs were very critical to the effective functioning of these entities. Shenoted that the Committee in their interaction with different Employees Unionsof the RRBs again and again felt that their was an urgent need to address theissues raised by them. She urged the Ministry of Finance to take up the matterat a priority basis.


ANNEXURE-XIV


The Committee met at. 11.55 A.M. on the 11th February, 2013 at Jaisalmerto discuss with the representatives of State Bank of Bikaner & Jaipur andMarwar Gramin Bank alongwith the Ministry of Finance (Department ofFinancial Services) on the Regional Rural Banks (Appointment & Promotionof Officers and Employees) Rules, 2010 and Grievance Redressal Mechanismfor the customers of RRBs in Rajasthan. The following Members of theCommittee were present in the meeting:-

PRESENT


MEMBERS

2. Shri Jesudasu Seelam3. Dr. K.P. Ramalingam4. Shri Rabinarayan Mohapatra

SECRETARIAT

1. Shri Mahesh Tiwari, Joint Director3. Shri R.P. Shukla, Assistant Director

Representatives of State Bank of Bikaner & Jaipur1. Shri Shiva Kumar, Managing Director2. Shri S.S. Negi, General Manager

Representative of Marwar Gramin BankShri Uttam Chand Agarwal, Chairman

Representative of Ministry of Finance (Department ofFinancial Services)Ms Anna Roy, Director (Banking Division)

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2. The Chairperson in her opening remarks highlighted the important roleplayed by Regional Rural Banks in the rural economy by providing institutionalsupport to Self-Help Groups in the State of Rajasthan. Thereafter she soughtclarifications on the following points i.e. (i) failure of RRBs to attract besttalents in the recruitments (ii) the absence of established Pay and Servicebenefits unlike commercial banks and the steps taken by the Ministry /sponsorbanks in this regard (iii) RRBs employees getting paltry amount as mergerpension without any DA component after their retirement (iv) What stepshave been taken by the Ministry to maintain parity in respect of superannuationbenefits of the RRB employees; (v) business conflict between Sponsor Banksand the RRBs sponsored by them; (vi) What has been done by the Ministry toencourage the business of RRBs; (vii) Whether the Ministry has accepted therecommendation of Dr. K.C .Chakroborty Committee Report regarding fullautonomy of RRBs and extending further capital support to maintain CRAR atindustry level and (ix) the steps taken by RRBs /Sponsor Banks to simplify theGrievance Redressal Mechanism (GRM) so that customers can lodge theirgrievances at call centre of customer care unit without facing hassles of provingidentity, account details, etc.

3. The Managing Director, State Bank of Bikaner & Jaipur informed theCommittee that initially when the Regional Rural Banks were set up it was feltthat its staff would be from the local area and would be well aware about theproblems of that area. The RRBs also had a limited role at that time. Soaccordingly the pay and associated benefits were less as compared to thestaff of the sponsor banks. However as of date no such differences are thereand the pay along with all benefits of the employees of the RRBs are at parwith the employees of the sponsor banks. The Chairman of the RRBs are alsoof the level of Deputy General Manager and sometimes even General Managerlevel officers are also posted from the sponsor banks. This itself shows theimportance that the sponsor banks give to the RRBs. He acknowledged thatstrengthening the RRBs was in the interest of the sponsor banks also becausewith the increasing incomes in rural areas these RRBs could generate good

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collections for the banks. It was also informed that in the State bank of Bikaner& Jaipur the average staff strength was about 4 and efforts were been madeto further strengthen the RRBs by increasing the number of the staff and alsogiving proper training to the existing staff.

4. The Director, Ministry of Finance informed the Committee that asinformed earlier the discussions on the issue of giving pensionary benefits tothe employees of the RRBs has been taken up in the Ministry and in principleagreement has been reached to extend pensionary benefits on the line ofContributory Pension Scheme to the RRB employees also. Now discussionswould be held with the concerned sponsor banks since they would have toimplement the scheme. Therefore in the coming months the details of thepension scheme would be worked out and then implemented to the RRBs.

5. It was also informed that initially when RRBs were set up they werevisualized to work in one or two districts. However over a period of timesome RRBs become so big that that they covered entire States. This lead to acondition where more than one RRB were functional in some districts.Therefore it has now been decided to merge RRBs at the State level to reducetheir number. This would help increase their size and also provide morepromotion avenues to the employees. Further a more balanced approach canbe adopted to opening new branches of the RRBs in areas having no bankingnetwork. In this light the process had already begun in Rajasthan where anumber of RRBs had already been merged and more would be merged in thecoming days.

6. The Chairperson concluding the discussion stressed the need forstrengthening the RRBs by providing institutional support. She also was ofthe opinion that grievance redressal of the customers of RRBs should also begiven due attention.


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MINUTES OF THE MEETING OF THE COMMITTEE ON SUBORDINATELEGISLATION, RAJYA SABHA

XXVIITwenty Seventh Meeting

The Committee met at 02.15 P.M. on the 02nd May, 2013 in Room Number126-C, Third Floor, Parliament House, New Delhi. The following Members ofthe Committee were present in the meeting:-

PRESENT


MEMBERS

2. Shri Vijay Jawaharlal Darda3. Shri P. Kannan4. Shri Prakash Javadekar5. Dr. K.P. Ramalingam6. Dr. Janardhan Waghmare7. Dr. Bharatkumar Raut8. Shri Ahmad Saeed Malihabadi9. Shri Shantaram Naik

10. Shri Bhupender Yadav11. Shri D. Bandyopadhyay12. Shri Rabinarayan Mohapatra

SECRETARIAT

1. Shri N.K. Singh, Joint Secretary2. Shri Mahesh Tiwari, Joint Director3. Shri R.S. Rawat, Deputy Director4. Shri Rakesh Anand, Deputy Director5. Shrimati Monica Baa, Assistant Director

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2. The Chairperson welcomed the Members of the Committee and thereafterthe Committee took up the following draft Reports for consideration one-by-one.

(i) Two Hundred and Fourth Report on the Statutory Orders laid onthe Table of the Rajya Sabha during the 227

th Session.

(ii) Two Hundred and Fifth Report on the Regional Rural Banks(Appointment and Promotion of Officers and Employees) Rules,2010;

(iii) Two Hundred and Sixth Report on the Gas Cylinder Rules, 2004;and

(iv) Two Hundred and Seventh Report on Motor Spirit and High SpeedDiesel (Regulation of Supply and Distribution and Prevention ofMalpractices) Order, 2005 and the Electrical Wires, Cables,Appliances and Protection Devices and Accessories (QualityControl) Order, 2003.

3. The Committee adopted these Reports with some amendments suggestedby the Members.

4. The Committee while discussing the draft Two Hundred and FourthReport on the Statutory Orders laid on the Table of the Rajya Sabha during the227

th Session was of the opinion that its repeated recommendation for timely

laying of the subordinate legislation framed under different Acts before theHouse, have not evoked the desired promptness in the Ministries/Departments.However, the Committee has noted some improvement in this regard. While33.5% notifications were delayed during 226th Session, it came down to 26.25%during 22th Session. It was, therefore, decided to continue the exercise ofsummoning the Secretaries of the concerned Ministries before the Committeeto explain such delays.

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5. While discussing the reasons of delay in laying of notifications byMinistries/Departments the Committee noticed that in most of the cases reasonscitied/forwarded by the Ministry/Department has been the late receipt of printedcopies of notifications from Government of India Press. To understand theproblem and for its solution the Committee decided to summon the Secretary,Ministry of Urban Development and administrative Ministry of Government ofIndia Press responsible for printing Government of India Notifications.

6. The Committee authorized its Chairperson and in her absence Shri VijayJawaharlal Darda and in his absence Dr. K.P. Ramalingam to present the Reportsto the House on 03rd December, 2013.

7. The Chairperson thanked the Members present and meeting wasconcluded at 2.40 P.M.

205-a-5 subordinate legislation (english).p65 - rajya sabha

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