New committee on Manpower and Suggestions of AIRRBEA

Govt. of India issued  an order on 2.8.2012 announcing the formation of a new committee to examine the man power policy in Regional Rural Banks.

AIRRBEA welcomes it and gives immediately seventeen valuable, practical and constructive  suggestions to the new committee on 7.8.2012. That is AIRRBEA!

We reproduce here the Govt order and the letter of AIRRBEA.

---

GOVT. ORDER

F. No. 7/ 7/2012-RRB

Government of India

Ministry of Finance

Department of Financial Services

Jeevan Deep Building, Sansad Marg,

New Delhi dated      2nd  August, 2012  

ORDER

A comprehensive Human Resource Policy based on the Thorat Committee Recommendations came into effect for the Regional Rural banks from September 2008. The manpower planning in RRBs  based on the above Committee's recommendations were applicable when RRBs were not on CBS platform.  Now RRBs have migrated to CBS and NEFT and rapid roll out of ATMs and BC network  is going to  take place  under the  geographical    cluster approach. The RRBs have also been advised to set up Ultra Small Branches (USBs) till such time business volumes justify a full fledged branch.  The Performance Norms for RRBs have been prescribed under MoU executed between Government of India, RRBs  and its sponsor banks.

2. Keeping in view the above developments, the manpower planning / staffing pattern in RRBs needs to be revisited.  In addition, the categorisation of banks and branches based on business levels also needs to be reviewed.

3. In order to address the above issues, Government of India hereby constitutes a Committee with the composition as under :-

1. Shri S.K. Mitra, ED, NABARD       -       Chairman

2. Shri J.K.Sinha, CGM, SBI       -       Member

3. Shri K.P.Muralidharan, GM, Syndicate Bank                  -       Member

4. Shri Charan Singh, Chairman, Aryavart Gramin Bank       -       Member

5. Shri M.G.Bhat, Chairman, Pragathi Gramin Bank               -       Member

6. Dr. R.M.Kummur, CGM, IDD, NABARD                               -       Member Secretary

Shri Sandeep Kumar, Director (RRB), Department of Financial Services  will be  a special invitee to the Committee.

4. The terms of reference of the Committee are as under :

i. Laying down norms for categorisation of RRBs and its branches based on   business volume etc.

ii. Assessment of technological up-gradation in RRBs and

(a)       reassessment of required manpower  and staffing pattern  of Head Office,   Controlling   Office, Branches etc.

(b)       skill development  needs of employees  of RRBs.

The Committee shall submit its recommendations within one month from the date of its first meeting.   Secretarial support to the Committee will be extended by NABARD (IDD), Mumbai.

(Suresh C. Arya)

Senior Research Officer  

Copy for information and necessary action forwarded to :-

1. The Chairman, NABARD, Head Office, Mumbai.
2. Shri S.K. Mitra, ED, NABARD, Head Office, Mumbai.
3. Shri J.K.Sinha, CGM, SBI, Central Office, Mumbai.
4. Shri K.P.Muralidharan, GM, Syndicate Bank                    
5. Shri Charan Singh, Chairman, Aryavart Gramin Bank, Head Office, Lucknow.         
6. Shri M.G.Bhat, Chairman, Pragathi Gramin  Bank, Bellary – 583103.(Karnataka)                  
7. Dr. R.M.Kummur, CGM, IDD, NABARD, Head Office, Mumbai.
8. All Sponsor Banks
9. All RRBs
10. PPS to Secretary(FS)/AS(FS)/JS(BA)/Dir(RRB)

---

LETTER FROM AIRRBEA

All India Regional Rural Bank Employees Association

(A Coordinating Body of National Federation of RRB Officer & National Federation of RRB Employees)

President: Ajit Ghosh          

Secretary General: Dilip Kumar Mukherjee

Ref. No. – 586                                                                                                      Date:- 07.08.2012

To,

Shri S.K. Mitra

Executive Director 

NABARD & Chairman H.R. Review Committee on Man power in RRBs 

Mumbai

Sir, 

Sub: - Committee on Man power planning in RRBs

        Ref. - F. No. 7/ 7/2012-RRB dt 2nd August, 2012  

We welcome you as the Chairman of the Committee on Man power planning in RRBs appointed by GOI on 02.08.2012. On behalf of majority of the “Officers” and “Workman” working in the RRBs, whom we represent, assure you of our best possible cooperation. 

In fact, we appreciate the decision of the Govt. of India to appoint such review committee though apprehended from a negative angle of view to nullify/reduce the number of recruitment vacancies on the plea of CBS /NEFT /ATM /BC etc.  GOI even interlinked the recruitment of new staff with per employee profit to the extent of Rs. 5 lakh when as on 31.03.2012, only 4 RRBs out of 82 RRBs could attain such figures. Such preconditions or presumptions virtually negate the minimum scope for recruitment envisaged in the recommendation of Thorat Committee. 

Thorat Committee took nearly two years for submission of its reports to GOI after introduction with almost all the RRBs and Sponsor Banks at the Zonal levels. The committee prepared a questioner and sent it to all concerned. How the committee under your Chairmanship would submit the report within a month cannot be imagined.

      

Thorat Committee took the views of each of the Apex Association separately at Kolkata and then jointly at New Delhi.  

We would request the committee to consider the following facts before finalizing the recommendation: 

(i)There had been no recruitment at all in the RRBs from the year 1990 to 2008. The staff strength reduced from 70000 in 1993 to 68000 in 2009, (as per NABARD Statistics), whereas the volume of business multiplied about 10 times and there is diversification of portfolios by many folds.  

(ii) CBS system is to run with specialized software

Here Infosys Company is  the owner of the FINACLE software and provides its supply  either directly or through other vendors like Wipro, who acts as vendor for roll out to CBS platform for individual bank under agreement for providing the soft ware and hand holding support to the organization and its branches. A data centre is needed for the operation of Finacle soft ware. This data centre is being managed by the vendor like Wipro. V-sat antenna required for this purpose is supplied and maintained by the vendor like Wipro.

In case of operations through CBS platform, there must be system of “maker” and “checker”.

Checker must verify every transaction through his pass word before the close of day’s closure of business.

In the CBS system generally cash transaction up to Rs 20,000/- and Transfer transaction upto Rs 25,000/- is allowed to be done by the Clerical staff, if all signatures are uploaded in the system. But most of transactions like day close, opening of accounts of all types require the pass word of officer, and it is must. Most of transactions of the branch require the presence of officer.

(iii) Massive expansion of branches under “Financial Inclusion” programme. The RRBs have opened more than 900 “brick & mortar branches” in the 2011-12.

(iv) Introduction of MNREGA program which along with other Govt. programs mainly linked with RRBs at the rural area takes more than 25%, if not more, of the time and energy of the workforce in RRBs. All such transitions /manual jobs must be taken into account while assessing the manpower. 

(v) In case of NPA for agril /rural credit for small / marginal farmers, regular and personal contact with the borrower by “Field Officer” is required since such small loans in good numbers normally cannot be “written off”. For a branch of advance portfolio more than 3 (three)crore, there must be one “Exclusive Recovery Officer”. 

(vi) Now more than 2000 rural branches are having only one Officer without any clerk or one clerk without any officer. Naturally, recovery portfolio can hardly be managed. If Govt. feels that the branch can be managed by single officer in the initial year then CBS business of maker & checker should be done away with as in all RRBs either staff has to go to nearby branch to verify the vouchers or unofficial dummy id is created which doesn't have approval of top management / board. 

(vii) There would be en-masse retirement in all the bigger and older RRBs in the immediate future like PSB. PSBs  have started massive recruitment to replace the retired /retiring staff. 

(viii) The attrition rate in RRBs is too high.

(ix) “It was also advised that Branch Manager be posted 6 months in advance to enable him to take all preparatory steps for business development so that the branch becomes profitable within one year of operation”. (Recorded Minutes of the RRB Chairman meeting chaired by Secretary, F.S., GOI held on 21.05.12).

(x) BC have no role to play in the core banking activities of RRB workforce. USB is basically meant for Financial Inclusion programme. BC/BF engaged for the USB are supposed to cover new and new areas so far remained uncovered, and they are not supposed to take part in or help in internal works/business of the Branch to which the USB is attached. So with growth of business of the branch in normal course and also due to business fetched by the USB, staff requirement of the Branch cannot be considered to be less, rather the requirement of staff is higher. 

(xi) If we consider percentage of utilization of ATM by the customers of the banks as a whole even at semi urban branches, it is below the benchmark. RRBs have more than 80% rural branches with aged /illiterate/rural women customer. The rural poor customers know the RRB branch staff personally and none else. Number of ATMs and their cost benefit ratio at the rural branches of PSB is to be ascertained and practical aspect of such proposal at remote rural branches is to be considered by the committee.

(xii) “Ultra small branches” are to be converted into “regular brick & mortar branch” as and when it becomes viable as per Govt. guidelines. According to Govt. guidelines, Branch Manager to be posted 6 months in advance. This point is to be taken care of.

(xiii) Manpower requirement should be assessed by the Board of Management of each RRB with “Exclusive Authority” as per existing provision of the RRB staff recruitment-cum-promotion Rule, 2010 with due regard to the guidelines to be issued by GOI.  Guidelines should determine the minimum requirement but should not be mandatory since the requirement may change from RRB to RRB according to infrastructural efficiencies, law and order situation and other factors, particularly “attrition” factor which is highest in South India and lowest in North East. 

(xiv) Requirement should be assessed in two phases. The first phase for immediate replacement of the vacancies due to promotion, retirement for the next two years, number of single custody branches impending branch expansion program, business growth, opening of Regional office, if any. 

(xv) The time factor for “Requirement” and rate of “attrition” must be taken into account while considering the man power planning. 

(xvi) Business parameter for classification of branches /RRBs must be on the lower side for the RRBs in hilly States /forest areas /terrorist areas etc.  No comparison of any RRB in South with one in North East. In that case, promotional vacancies from officer /workman will be much less or nil in the RRBs of N.E. Region /hilly Region. 

(xvii) There must be “Regional Office” in each district and all the Regional offices must be headed by RRB officer as per existing guidelines issued by NABARD. 

This is our instant observation. We shall submit our exhaustive suggestion, as and when called for. 

                                                                                                                                  Yours faithfully 

                                                                                                                                

                                                                                                               

                                                                                                                      Dilip Kumar Mukherjee

                                                                                                            Secretary General, AIRRBEA