AIBOC CIRCULAR NO. 103 DATED 01.12.2011

AIBOC issued its circular No. 103 dated 01.12.2011 on merger/amalgamation of RRBs. We are placing the same here for our readers.

CIRCULAR NO.103                    DATE: 01.12.2011

TO ALL AFFILIATES /MEMBERS:

MERGER/AMALGAMATION OF RRBS

We understand from our affiliate, All India Regional Rural Banks Officers’ Federation, that, Government of India is proposing to reduce the number of RRBs from 82 to 47 by cross merger of RRBs. This is against our demand for merger of RRBs with their sponsor Banks.

Further, we understand that, announcement of pension scheme in RRBs is linked to merger/amalgamation of RRBs. We have today sent a letter to the Hon’ble Finance Minister, Government of India seeking his intervention in the matter. A copy of our letter is annexed.

We shall advise further details later.

With greetings,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY

To,

Sri. Pranab Kumar Mukherjee,

Hon’ble Finance Minister,

Government of India,

South Block, Parliament House,

NEW DELHI.

Respected Sir,

MERGER & AMALGAMATION OF RURAL REGIONAL BANKS

We understand from our affiliate All India Regional Rural Bank Officers’ Federation that, Government of India has initiated a process to amalgamate and merge of RRBs’; thereby reducing their number from 82 to 47.

Sir, you are aware that, earlier by merging 196 RRB’s, sponsor Banks wise, the number has been reduced to 82. Subsequently, the Sponsor Banks have incurred huge cost in putting these amalgamated RRB’s under Core Banking Solutions platform. Further, reduction of their number to 47 by cross mergers of RRBs’ will create a lot of operational problems and avoidable cultural integration.

We reiterate our earlier suggestion that, RRBs’ shall be merged with their sponsor Banks for better control, viability and compete, to make financial inclusion a success story.

Incidentally, it may not be inappropriate to once again request your good self to consider extension of Pension to RRB employees and officers as a social security measure.

We would like to seek an audience and request your honour, kindly to provide us an opportunity at the date convenient at your end to submit our views on merger/amalgamation of RRBs’, their viability and capability to compete with others in the Banking Industry.

With kind regards,

Yours faithfully,

Sd/-

GENERAL SECRETARY

C.C:     1)         Shri.D.K.Mittal, Secretary Financial Services, Government of India, New Delhi.

2)         The General Secretary, AIRRBOF C/o Uttarabanga, KR.SH.GR.Bank, Hakimpara Branch, Bidhan Road, SILIGURI – 734 401 (W.B).