# AIBEA Urges DFS, IBA & IBPS to Reform Clerk/CSA Recruitment Process and Local Language Testing
**Date:** 26 June 2026 **Reference:** AIBEA/GS/2026/124 **From:** All India Bank Employees’ Association (AIBEA)
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## Summary
The All India Bank Employees’ Association (AIBEA) has written to the Department of Financial Services (Ministry of Finance, Govt. of India), Indian Banks’ Association (IBA), and Institute of Banking Personnel Selection (IBPS) highlighting serious issues with the recruitment of clerks and Customer Service Assistants (CSAs) in banks.
The letter points to acute staff shortages, high attrition rates, and a critical problem with local language proficiency among recruited candidates.
## Key Issues Highlighted
– Inadequate recruitment of clerks/CSAs for nearly a decade has led to severe staff shortages in bank branches. – The massive increase in business volume and introduction of new customer services has significantly increased the workload on frontline staff. – Despite higher indents placed with IBPS in recent years, the **net recruitment** by banks is much lower than the number of candidates supplied by IBPS. – A major concern: Many candidates who clear the IBPS process and are allotted to banks are **not proficient in the local language** of the state they are posted in — a critical requirement in customer-facing banking roles.
## Problems with the Current LLPT Process
Currently, the Local Language Proficiency Test (LLPT) is conducted by individual banks *after* IBPS allotment but *before* the candidate joins. Candidates who fail the LLPT are disqualified, further reducing the already insufficient number of new recruits.
## AIBEA’s Recommendations
1. **Review and modify the sequencing** of recruitment between officers and CSAs to improve intake. 2. **Shift the responsibility of LLPT** away from individual banks. 3. Let **IBPS** (the designated and authorised recruitment agency) conduct the LLPT and supply only the final appointable list to the banks. 4. Alternatively, require candidates to submit a local language proficiency certificate (from school/college or approved institutes) at the time of application itself.
AIBEA has requested the authorities to give this important issue their urgent attention and take necessary action.
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## Full Text of the Letter
**ALL INDIA BANK EMPLOYEES’ ASSOCIATION** Regn. No. 2037 Regd. Office: Parwana Bhavan, 4824/24, Ansari Road, Darya Ganj, New Delhi-110002 Central Office: “PRABHAT NIVAS”, Singapore Plaza, 164, Linghi Chetty Street, Chennai-600001 Phone: 2535 1522 | Web: chv.aibea & aibeahq | Mobile: 98400 89920
**AIBEA/GS/2026/124** **26-6-2026**
To, The Secretary, Department of Financial Services, Ministry of Finance, Govt. of India, New Delhi The Chairman, Indian Banks’ Association, Mumbai The Chief Executive, Institute of Banking Personnel Services, Mumbai
Dear Sirs,
**Reg: Recruitment of clerks/Customer Service Assistants in Banks**
In the recent years, for about a decade, there has been inadequate recruitment of clerks/CSAs in the Banks and this has resulted in acute shortage of staff in the Branches. The problem has been further aggravated due to the huge increase in the volume of business in the Banks and the variety of new services being extended to the customers and banking public. This has added to the pressure of work the frontline clerical staff have been suffering from.
After the continuous efforts by AIBEA and by all the Unions under the banner of United Forum of Bank Unions, there has been some increase in the Indents placed by the Banks with IBPS in the last two or three years. But, as you are well aware, the final net recruitment made by the Banks has been far less than the Indents placed and candidates supplied to the Banks by the IBPS.
Hence, the DFS/IBA/IBPS agreed that the sequence of recruitment of officers and CSAs will be re-arranged in order to reduce the rate of attrition after joining or not joining after offer of appointment is given to the candidates. But we observe that this has not improved the intake substantially. We continue to observe that this year also, the net recruitment has been much less than the candidates supplied and offer of appointments.
While so, Banks are encountering one more issue in getting adequate staff. While the process of recruitment by the IBPS consists of inviting applications, conducting the examination and supplying the number of indented candidates to the Banks, in the recent years, it has been observed that many candidates who were declared successful in the process and allotted to various Banks in different States, were not proficient in the local language of that State which is highly essential in the customer service oriented industry like Banking sector.
The implications and complications of recruiting frontline clerical staff who are not proficient in the local language need not be elaborated as the same is well known to you.
To address and mitigate this problem, IBPS/Banks are at present stipulating and adhering to the following:
– a) Candidates with 10th Standard mark sheet/certificate with the specified local language, are exempt from Local Language Proficiency Test (LLPT). – b) LLPT is conducted by the concerned Banks after allotment by IBPS but before joining. – c) LLPT is qualifying in nature and conducted by the banks or by an independent body. – d) Candidates failing in LLPT are disqualified and not offered appointment. – e) Allotted Bank can cancel candidature if LLPT is not cleared or certificate is not produced.
With the result, the Banks are required to conduct this LLPT process after the candidates are allotted to the Banks.
When the candidates do not qualify in the LLPT test, they are not given appointment orders and to that extent the number of candidates for appointment gets reduced.
The net result is that Banks continue to get inadequate number of candidates than their actual requirement.
**In view of this, we suggest the following:**
– **i.** The process of sequencing the recruitment should be further reviewed and modified. – **ii.** The job of conducting LLPT test should not be passed on to the Banks. – **iii.** LLPT test should be undertaken by IBPS and only the final appointable list of candidates should be provided to the Banks. IBPS is the designated and authorised recruitment agency. – **iv.** Alternatively, IBPS can stipulate that only candidates with the requisite certificate from the school/college or language proficiency certificate from approved Institutes can opt for that particular State.
We are hopeful that this important issue will receive your necessary attention and needful action.
Thanking you,
Yours sincerely,
**C.H. VENKATACHALAM** **GENERAL SECRETARY**
