P Dinesh, Chief General Manager, Human Resources, Nabard, exchanges a copy of the signed salary agreement with Rana Mitra, General Secretary of AINBEA. Also featured are AK Sood, deputy director of Nabard, and Jose T Abraham, president of AINBEA.
The pension revision for pensioners of both RBI and Nabard has also been approved. Rana Mitra, Secretary General of AINBEA, said business line the employees’ association had waged a protracted battle to get the negotiated settlement approved by the Department of Financial Services (DFS) of the Ministry of Finance.
Different roles
At its inception in 1982, a significant portion of the original staff was transferred from RBI to form Nabard’s core team. As a direct ‘descendant’ of the RBI, Nabard inherited the work culture, ethos and development-oriented focus of the parent institution. While they share a similar work culture, RBI plays a crucial role as a banking regulator, while Nabard is a development finance institution (DFI) that focuses on rural development.
Settlement profits
Mitra said AINBEA had also demanded pension adjustment for staff recruited by Nabard, similar to former RBI employees in Nabard who retired till October 31, 2017; resumption of flow of concessional funds from RBI to Nabard as per statute; and dropping what it described as anti-human labor codes, among other things.
The new scheme proposes an average pay increase of 20 percent for employees with different years of service. The revised wages will come into effect retrospectively from November 1, 2022 and continue till October 31, 2027. This is the period of simultaneity of the 9th bipartite wage settlement on par with the RBI, public sector banks and regional rural banks, Mitra said.
Financial expense
The total financial outlay per year for Nabard to implement pay revision in terms of higher wages to all categories of employees will be ₹170 crore, while that for arrears to all categories of employees will be ₹510 crore. Pension revision for Nabard-recruited staff to bring them on par with RBI-recruited staff under the Nabard Pension Regulation, 1993, for those who retired up to October 31, 2017, would result in a one-time arrears of ₹50.82 crore. An additional ₹3.55 crore in pension payments will be disbursed every month to 269 pensioners and 457 family pensioners in Nabard. The entire amount of arrears, i.e. ₹560.82 crore, as well as the monthly/annual recurring payments, will be paid entirely by Nabard from its own balance sheet.
Top performance
Mitra claimed that even while implementing a strong development mandate, Nabard has elevated its status to one of the best performing DFIs/FIs, with per capita profitability and turnover surpassing many of its peers, including foreign banks operating in India. Yet concessional financing under the statute (now almost completely halted) would result in a further reduction in interest rates for poor farmers and women in the rural sector. This would serve Nabard’s development mandate in a much more effective manner.
Strengthening the mandate
At a gate meeting organized at Nabard’s headquarters, AINBEA expressed its position in terms of strengthening Nabard’s mandate as the premier DFI promoting the welfare of poor, small and marginal farmers, and extended support for the proposed all-India strike by trade unions on February 12 against new labor laws.
Published on February 4, 2026
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