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circular no.24- 31 JANUARY 2008

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circular no.24- 31 JANUARY 2008 Powered By Docstoc
					                                                                   airrbea1@rediffmail.com
                                                                   Phone& Fax: 033 – 25734176/ 9831233798(M)

All India Regional Rural Bank Employees Association
President: Ajit Ghosh                                             GOLDERS GREEN, Ground Floor F .G. Block
General Secretary: Dilip Kumar Mukherjee                          1, Najrul Islam Avenue (V.I.P. ROAD)
                                                                  Kaikhali, Kolkata - 52

Circular no.24                                                                                           Date: 31-01-2008

To
General Secretary,
All Units /State Federations / C.C. members.

Dear comrades,

A. Discussion with Sri Arun Ramanathan, Secretary, Financial Sector, GOI:
We had the opportunity to meet Sri Arun Ramanathan, Secretary, Financial Services, Ministry of Finance, GOI at New Delhi on
30th January 2008 on behalf of our own organisation as per official appointment. We had two series of meetings with him on all
the national issues of the RRB and RRB staff for nearly one hour.

We discussed the following issues with him as detailed in our memorandum addressed to him along with separate note for
each item.
    1. Formation of National Rural Bank having “State level Rural Bank” under it. Total de-linking of RRBs with sponsor
         banks.
Secretary, Financial Services kindly observed that:-
    i)      Govt. of India has summarily rejected the proposal for merger of RRBs with sponsor banks.
    ii)     NRBI is not in the present agenda for restructuring of RRBs before GOI.
    iii)    If state level RRB is formed then sponsor bank may loose their interest. So GOI is not considering “State level
            RRB” at present but may consider after reviewing the results of the present phase of the amalgamation.
    iv)     3 / 4 such proposals for amalgamation are pending in the states of U.P., M.P., Maharashtra and J&K. This may be
            completed within a short period.

     2. Re-capitalization:
We demanded that:
G.O.I. and Sponsor Banks should contribute their proportionate additional share to the extent of accumulated loss of the RRBs
irrespective of State share contribution in this financial year and the entire capital support should directly go to RRB. RRB may
keep the fund with sponsor bank provided sponsor bank may pay the highest rate of interest paid on bulk deposit in the
market.
Sri Ramanathan Ji was kind enough to note:
     i)      GOI will sanction the proportionate share to the extent of negative networth for release in this financial year but
             may have to be tagged with the proportionate contribution of respective State Govt. GOI may consider the
             proposal for extending the capital support directly to RRB.

    3. Branch Expansion / Thorat Committee recommendation/Promotion cum Recruitment:
We observed that the mission and vision for branch expansion can not be fulfilled unless immediate promotion & recruitment
takes place in RRBs which have been stalled for nearly two decades.
Sri Ramanathan Ji kindly observed that - The Thorat Committee will place its report in details before him on 31st January 2008.
GOI has already received the views of RBI and Nabard and will take appropriate decision immediately.
We observed that:-
GOI while taking appropriate decision should consider the views of AIRRBEA as already placed and views of all RRB Chairman
placed at BIRD, Lucknow on 2.06.2007.
                                                                    airrbea1@rediffmail.com
                                                                    Phone& Fax: 033 – 25734176/ 9831233798(M)

All India Regional Rural Bank Employees Association
President: Ajit Ghosh                                              GOLDERS GREEN, Ground Floor F .G. Block
General Secretary: Dilip Kumar Mukherjee                           1, Najrul Islam Avenue (V.I.P. ROAD)
                                                                   Kaikhali, Kolkata - 52

     4. Govt. Deposit in RRB:
Secretary, Financial Service assured us to take immediate appropriate action in this regard.

    5. Interest on CRR of RRBs:
Secretary, Financial Service was kind enough to take the historical background of the concessions enjoyed by the RRBs,
interest being paid by RBI and subsequent withdrawal etc. He was kind enough to take a serious note of it.

     6. RRBs to be exempted from Income Tax:
No comment from the Secretary, Financial Services.

     7. Withdrawal of Deputed Officers:
Secretary, Financial Sector, GOI was kind enough to take the details of this issue and like to know as to whether Thorat
Committee has recommended for promotion / appointment of all such senior executives from RRB staff. We placed the details
with the examples of even deputing Scale –II / Scale-III officers by BOB / Indian Bank / SBI at the cost of the RRBs, even loss
making RRBs.

    8. Negotiating Forum / Representation of Workmen / Officer in the Board of Management of RRB:
Secretary, F.S., GOI took the note of it without any comment.

    9. Parity of Pension:
Secretary, Financial Sector, GOI was kind enough to take full note of the details of the background, disparities, legal hurdles,
financial burden etc. through his positive queries. This issue was discussed for a long time. We shall have to continue our
discussion with him.
    10. Parity of allowances and benefits:
We placed the details of disparities along with orders issued by Hon’ble Supreme Court in 2001&2002, Tribunal Award, Govt.
order in 1991 & 1993, list of anomalies and disparities including denial of some benefits and even pay element i.e. computer
allowance. We strongly protested against the delegation of power to sponsor bank though this authority is absolute for GOI
under section 17 of the RRB Act.

Secretary, Financial Services was kind enough to observe that he would go to the details and take appropriate decision.

B. Our Court cases on Pension Issues:
i) AIRRBEA as the petitioner filed writ petition against Govt. of India as respondent in the year 2003 (writ petition no. 20034-36
of 2003).
ii) Andhra Pradesh Regional Rural Bank Employees Association has filed a case on pension issue at Hyderabad High Court in
the year 2003.
iii) Our Units at erstwhile Nagarjuna Grameena Bank filed writ petition before A.P. High Court in the year 2003.
iv)Our Unit at erstwhile Puri Gramya Bank filed writ petition at Orissa High Court in the year 2003 vide misc. case no.2556 of
2003.
Present Position:
Our case before Karnataka High Court is expected to come for final hearing within a month.

Our Units at South Malabar Gramin Bank are taking appropriate actions for filing writ petition at appropriate court at
appropriate time.
                                                                    airrbea1@rediffmail.com
                                                                    Phone& Fax: 033 – 25734176/ 9831233798(M)

All India Regional Rural Bank Employees Association
President: Ajit Ghosh                                               GOLDERS GREEN, Ground Floor F .G. Block
General Secretary: Dilip Kumar Mukherjee                            1, Najrul Islam Avenue (V.I.P. ROAD)
                                                                    Kaikhali, Kolkata - 52

C. Increase of our membership:
In the following units, new members have joined from other association.

Sl.no.      Name of the Unit                      Region                No. of new Joining to AIRRBEA
                                                                        members    from
1.            Satpura Gramin Bank                   Hosangabad          27         AIGBWO
2.            Narmada Malwa GB                      Dewas               62         AIGBWO
3.            Sarba U.P. Gramin Bank                Jhansi              30         AIGBWO/AIGBOO
4.            Baroda Eastern UP GB                  Allahabad           42         AIGBEA
5.
D. State Govt. fund with RRB:
Our Karnataka State Federation along with GS, AIRRBEA met Chief Minister and also Finance Minister of Karnataka State Govt.
separately with the demand for placement of all state govt. and Govt. schemes fund with RRBs also.
Our Karnataka State Federation took up the issues with RBI and SLBC through the Chairman of the RRBs. Karnataka State
Govt. has issued the order to all departments / District Collectors / Zilla Parisad to deposit their fund with RRBs also according
to ratio of involvement of the respective bank at the District / State level in different Govt. scheme.
Rangarajan Committee Report:
In the final report available in Nabard website, Rangarajan Committee has highly appreciated the role of RRBs in the area of
financial inclusion compare to Public Sector Bank. This Committee has opposed the idea of “State Level RRB” and
recommended for continuing the existing sponsor bankwise amalgamation of the RRBs.
Rangarajan Committee stated that:-
“5.25 The foregoing paragraphs conclusively indicate that RRBs are well positioned to play a major role in financial inclusion
particularly in areas/regions with high rates of financial exclusion. RRBs were originally created to cater to neglected sections /
areas as they were expected to have sound financial management combined with local feel and familiarity. With the
amalgamation of RRBs, they have acquired the critical mass in terms of financial strength to widen and deepen their outreach.
With the requisite strength having been developed, RRBs are the best suited vehicles to widen and deepen the process of
financial inclusion. However, utmost care must be taken to ensure that in the process of fulfilling the socio-economic objective
of financial inclusion, RRBs’ do not again fall into the vicious circle of deteriorating financial performance and deviation from
their mandate. RRBs may be provided adequate promotional and developmental assistance to contribute substantially to
financial inclusion in a way that the business generated out of inclusion efforts add positively to their performance”.

Hon’ble Speakers to address General Council meeting on 16th & 17th February 2008:
         1. Com. Bellarmin, Member of Parliament, Chairman, Reception Committee.
         2. Com. Vikas Rawal, Associate Professor, Jawaharlal Nehru University, New Delhi.
         3. Com. W. R. Varadarajan, Secy, CITU.
         4. Com. K. Krishnan, Joint Secretary, BEFI.

With greetings,

                                                                                                   Comradely yours

                                                                                                   Dilip Kumar Mukherjee
                                                                                                   GS, AIRRBEA
                                           airrbea1@rediffmail.com
                                           Phone& Fax: 033 – 25734176/ 9831233798(M)

All India Regional Rural Bank Employees Association
President: Ajit Ghosh                      GOLDERS GREEN, Ground Floor F .G. Block
General Secretary: Dilip Kumar Mukherjee   1, Najrul Islam Avenue (V.I.P. ROAD)
                                           Kaikhali, Kolkata - 52

				
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