Narendra
Modi government directs rural banks told to cut jobs, outsource operations
Economic Times News
By Atmadip Ray, ET Bureau | 20 Mar, 2015, 04.00AM IST
KOLKATA: The Narendra Modi
government has directed regional rural banks to become slim
by cutting jobs and outsource non-core functions
such as IT maintenance, cash remittance and house-keeping.
The decision may not force RRBs to lay off people but these banks which collectively employ around 80,000 at present would need to downsize their future hiring plans by at least 10-12%.
The government told them to handle higher volume of business with a lesser number of employees in a core-banking environment backed by modern IT infrastructure.
The move is aimed at improving productivity and profitability of RRBs.
The move is based on the recommendations of SK Mitra committee on HR policy for RRBs,
which was set up three-years back but its suggestions were buried under the carpet by the
UPA-II government.
SK Mitra was then the executive director of National Bank for Agriculture & Rural Development.
The Modi government wants RRBs to follow the recommendations.
by cutting jobs and outsource non-core functions
such as IT maintenance, cash remittance and house-keeping.
The decision may not force RRBs to lay off people but these banks which collectively employ around 80,000 at present would need to downsize their future hiring plans by at least 10-12%.
The government told them to handle higher volume of business with a lesser number of employees in a core-banking environment backed by modern IT infrastructure.
The move is aimed at improving productivity and profitability of RRBs.
The move is based on the recommendations of SK Mitra committee on HR policy for RRBs,
which was set up three-years back but its suggestions were buried under the carpet by the
UPA-II government.
SK Mitra was then the executive director of National Bank for Agriculture & Rural Development.
The Modi government wants RRBs to follow the recommendations.
The nation's banking system has 56 RRBs with 19400 branches and a collective
business volume of Rs 4.50 lakh crore.
They lend primarily to small farmers and artisans.
"The committee had suggested steps with a view to improve productivity in RRBs,"
Mitra told ET on Thursday.
"RRBs need to redeploy people and re-skill them according to the need.
The future profile of RRB employees should match the requirement of modern banking," he said.
RRB employees have decided to resist this move as they see this as being impractical
given the nature of RRB business.
About 75% of their operation are in rural areas where branches typically need to attend a large number of customers daily.
"The move is going to affect customer service and business growth" said SK Bhattacharya,
general secretary of All India RRB Officers' Federation.
"We have to scale down our hiring plan too," he said.
The panel suggested that RRBs with business less than Rs 30 crore should
outsource office attendants for house-keeping and branch maintenance.
It has proposed that smallest branches with less than Rs 10 crore total business
and less than Rs 6 crore advances should be managed by
two people - one officer and an assistant,
while RRBs can deploy 15 officials - 10 officers,
three assistants and two attendants
for the biggest branches with over Rs 200 crore total business and over RS 60 crore advances ..
"The proposal related to staffing pattern is far from reality.
Our branches have to negotiate with a large number of customers to perform daily operation.
It will be impossible to manage business with this skeletal staff,"
All India Regional Rural Bank Employees Association secretary general A Sayeed Khan told ET.
The committee however said that
the staffing pattern is indicative and RRBs would enjoy flexibility to deploy
people in branches based on need, within the overall ceiling of aggregate
manpower...
To somewhat offset the proposed squeeze in manpower need, the panel said RRBs can hire an additional 2.5% of total staff strength - over and above regular recruitment for branches -- to meet future business opportunities, NPA management and gaps created by attrition .
But Bhattacharya said this would be inadequate given the recent attrition of staff.
At present, RRBs follow an old HR policy prepared by former Nabard chairman YSP Thorat in 2008 when RRBs were not on CBS platform.
To somewhat offset the proposed squeeze in manpower need, the panel said RRBs can hire an additional 2.5% of total staff strength - over and above regular recruitment for branches -- to meet future business opportunities, NPA management and gaps created by attrition .
But Bhattacharya said this would be inadequate given the recent attrition of staff.
At present, RRBs follow an old HR policy prepared by former Nabard chairman YSP Thorat in 2008 when RRBs were not on CBS platform.
6 comments:
THE VITAL THREE Ms have no substitutes. RRBs or PSBs. All are facing the same problem. Our great leaders are aware of this. Yet, strange situations are seeping in. VIGILANCE AND SECURITY ASPECTS ARE at stake. Due to large scale Aadhaar seeding, Crediting of Gas Cylinder's subsidy amount to bank account, PMJDY accounts' large scale financial inclusion with very much liberalised KYC norms are resulting into VOCAL CHORDS aching and nervous system disorders in several Clerks and Officers of Banks. Without even ten minutes gap, these bankers are forced to get into non stop talking with large number of customers daily. Let there be an attractive GOLDEN HAND SHAKE with related I.T. exemptions etc. for those who joined the banking industry during 1981 to 1986 period. Then, whatever the new steps that Mr. Modi's government wants to experiment with in RRBs and PSBs can be deployed. With the advent of 4G and 5G, in banking industry too, Banking certainly goes to Customers' Office Room/Bed Room. Upto then, the existing staff of RBs and PSBs should not be chocked with skeletal staff.4% simple Interest rate for all Staff Loans and Clean Overdraft Accounts w.e.f. 01.04.2015 is desirable for the entire Banking Industry, RRBs and PSBs. The employer Bank should not do HIGHER RATE OF INTEREST RATE application on their own staffs' loans and overdraft accounts. Please support the cause of RRBs and PSBs.
If nabard is created for agriculture growth n rural dev. And the staff getting good salary n perks why are they not dealing the customer directly ?why ?????and why they are seeing a loopes n holes in rrb n psp ???they are getting full saturday off .....can any one dare to ask this question n why rbi is not setting up its office in the rural areas and face the ground situation of indian banking system instead of giving rules from mumbai ac room with excess staff?????????.?:-) :-) .
Its time we tap the great potential of business growth of india from rural areas by setting up direct nabard banking for sole agriculture n rural areas growth and most of the nabard staff are well qualified n well paid n the name nabard stand for itself....what do u all think??????
Lollipop govt. No use.,
Modi govt is fully false govt. Which cause depression of all staff of banks. They have no any capacity to deal itself bank.who r only depend on corporate is private machinery.
It's very easy to provide a new circular and win in election. But it is very much tough to deal with a hundred of rural customers daily at a rural branch. If so not , why RBI ,SBI, other Psbs are not opening any branch in any remote area.
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