New Delhi: India’s banking sector is set to witness a three-day nationwide strike from September 28, with employees of major public sector banks, including State Bank of India, participating in the protest. Old-generation private sector banks and regional rural banks are also expected to be affected during the strike, which will continue until September 30.
The three-day strike follows a one-day nationwide strike observed on September 11.
The United Forum of Bank Unions (UFBU), an umbrella body representing seven bank employees’ and officers’ unions, called for a nationwide strike after the government failed to meet several of their demands. The unions have also threatened an indefinite strike from October 26 if their demands are not addressed.
According to bank employees’ unions, the demand for a five-day banking week has remained unresolved for several years. During recent conciliation meetings before the Chief Labour Commissioner, the government did not give any commitment on implementing the five-day working week, union leaders said.
“Agitation has been forced on the unions due to the actions of the government and management,” said Rupam Roy, general secretary of the All India Bank Officers’ Confederation (AIBOC).
“A five-day working week is already followed by central and state government offices, the RBI, LIC, GIC, NABARD and several other institutions. The stock market, money market and foreign exchange market also function on a five-day basis,” said L Chandrasekhar, general secretary of the National Confederation of Bank Employees (NCBE).
The biggest impact of the strike is expected to be on branch-based and manually processed banking services, particularly at public sector banks and regional rural banks. The services that will be affected during the three days are as follows:
1.Cash deposits and withdrawals: Cash transactions at bank counters are likely to be affected.
2.Cheque clearance: Cheque-related processing and clearing may face delays during the strike.
3.Loan processing: Applications requiring branch-level processing, including personal, gold and property loans, may be delayed.
4. Demand Drafts: Customers may face difficulty obtaining Demand Drafts (DDs), a prepaid payment instrument issued by a bank directing another bank or its branch to pay a specified sum to a designated party.
5. KYC updation: Customers who have been asked to complete in-person document verification at branches may have to wait until normal branch operations resume.
6. New account opening: Customers who need to open a new account through a branch may have to wait until the strike ends.
1.Digital and automated banking services are expected to continue functioning, although customers could face occasional disruptions depending on the bank and service provider.
2.Internet banking through official bank apps and websites
3.Mobile banking
4.UPI payments
5.ATMs
6.Cash Deposit Machines
New-generation private sector banks such as ICICI Bank, HDFC Bank, Axis Bank and IndusInd Bank are expected to remain open and function normally, as the strike is primarily expected to affect participating unions and public sector banking operations.
The Union government has rejected the bank unions’ claim that it had committed to implementing a five-day work week.
The Finance Ministry has appealed to bank employees to refrain from resorting to strikes and resolve their remaining demands through dialogue, saying that most concerns of the unions have been substantially addressed.
“Given that most concerns of the unions have been substantially addressed, that the remaining demand continues to be examined, and that the government continues to proactively introduce welfare measures for the banking workforce, bank employees are urged to refrain from resorting to strikes, work towards resolving issues through dialogue, and ensure that banking services remain uninterrupted,” it said.
The government also said that one of the unions’ major demands concerning the withdrawal of the Performance Linked Incentive (PLI) scheme was put in abeyance earlier this month after detailed discussions.
The Finance Ministry has also asked public sector banks and regional rural banks to take steps to minimise disruption, including ensuring adequate cash availability at ATMs.
In view of the strike, the finance ministry advised all departments and ministries to disburse the September salary in advance.
(This copy is compiled by Ranju Raj)