Tamil Nadu Grama Bank Staff Demands National Rural Bank

The joint state conference of the Tamil Nadu Grama Bank (TNBG) Officers Association and the Tamil Nadu Grama Bank Workers Association in Madurai demanded the formation of the National Rural Bank of India (NRBI) by merging the 43 Regional Rural Banks (RRBs). The conference also passed a resolution to relieve the Grameen banks from the “clutches” of sponsor banks.

The officer and worker unions are affiliated with the All India Regional Rural Bank Employees Association. The second state conference, held from April 30 to May 1 with the slogan ‘Rural Bank for Rural People’, was attended by delegates comprising 210 officers and 180 workers.

The delegates also criticised the Centre’s move to issue an initial public offering (IPO) for the RRBs by dissolving the share structure between the Union government (50%), sponsor banks (35%) and respective state governments (15%).

The delegates also demanded separate toilets for women in 90% of the branches. With 655 branches across the state divided into 11 regions, TNGB is the fifth largest bank catering for villagers, particularly those needing agricultural credit.

TNGB, formed by merging the Pandyan Grama Bank and Pallavan Grama Bank in 2019, is sponsored by the Indian Bank. Considering the conflict of interest between the Grama Bank and the sponsor banks, the delegates demanded the formation of NRBI.

TNGB Officers Association president A Anto Gaulbert told Newsclick that the Centre’s decision to issue the IPO when the RRBs cater for villagers’ needs is “unacceptable”. “The government must extend the services to all rural people by forming the NRBI,”

The 43 RRBs had an annual turnover of Rs 10.26 lakh crore with a net profit of Rs 5,726 crore in 2022-23 and catered for around 40 crore people across the country, according to a resolution passed in the conference.

‘By ensuring better technological facilities in rural banks, rural masses can be ensured all possible banking services. The sponsor banks are least bothered about the development of the rural banks while the Union government and sponsor banks are refusing to infuse sufficient funds for better development,” the resolution read.

TNGB Workers Union general secretary H Aswanth told Newsclick that “rural banks are for the rural masses. The need of the hour is to strengthen the system by ensuring autonomy and sufficient capital infusion”.

A major concern raised by the employees was the lack of separate toilets for women in the branches. “Worse is that women employees have to use toilets in neighbouring buildings in several branches. It is impossible to use outside toilets during working hours. This has a psychological impact on women employees,” Aswath said.

The Union finance ministry asked public sector banks and financial institutions in March 2022 to ensure separate toilets for women employees after the issue was raised by CPI(M)’s Madurai Lok Sabha member S Venkatesan. The delegates said the “basic need of women employees was unmet” despite the finance ministry’s direction.

The delegates also demanded an end to the disparity in allowances in public sector banks. “Allowances for all banks must be uniform,” Gaulbert said.

The conference highlighted the “lack of appointments in branches” despite the recommendations of the SK Mitra Commission. As per the recommendations, banks should have 1,600-1,700 cashiers and 2,700-2,800 officers, but only 1,000 cashiers and 1,700 officers were employed by the end of 2022-23.

“Officers and workers are overloaded due to vacancies. While educated youths await permanent jobs, bank employees are overburdened and depressed. This hampers the bank’s development in general,” another resolution noted.

The bank is also accused of resorting to appointing casual workers for regular vacancies, particularly in the office assistant category.