Bank Strike Deferred: Banking Services To Remain Normal Today As Unions Postpone 3-Day Protest

Banking services will operate normally on Monday after bank unions deferred their planned three-day nationwide strike following a late-night meeting with the Indian Banks’ Association (IBA).

The Indian Banks’ Association and the United Forum of Bank Unions (UFBU) held discussions at 9:30 pm on Sunday, just hours before the proposed strike was scheduled to begin. Following the meeting, the UFBU agreed to put its agitation on hold after the two sides reached an understanding on several key demands.

The main breakthrough concerns the unions’ long-standing demand for a five-day banking week. The IBA and UFBU have agreed to set up a high-level committee to examine the proposal to declare all remaining Saturdays as holidays.

According to the UFBU, the committee will begin work immediately and explore possible alternatives after consulting stakeholders, including customers, with the aim of arriving at a mutually acceptable solution.

Talks On Performance-Linked Incentives

The two sides also agreed to begin discussions on the Performance Linked Incentive (PLI) scheme applicable to Scale IV and above officers.

The IBA is expected to consider proposing modifications to the scheme to the government in an effort to address concerns raised by bank unions and officers’ associations.

Issues that remained unresolved from the minutes of the March 8, 2024 meeting will also be taken up for an expedited resolution, the UFBU said.

Banks To Function Normally On Monday

The strike was scheduled for three days from Monday and coincided with the half-yearly closing of banks. With the agitation now deferred, customers are expected to receive regular banking services on Monday.

Had the strike gone ahead, physical banking operations could have been disrupted, particularly at public sector banks, old-generation private banks and regional rural banks.

Services such as cash deposits and withdrawals and cheque-related operations were among those expected to be affected. Digital banking, internet banking and other online services were expected to continue.

Strike Followed September 11 Protest

The proposed three-day strike would have followed a one-day nationwide bank strike held on September 11.

Bank unions had also warned of an indefinite strike from October 26 if their demands were not addressed.

Besides the five-day working week, the unions have been raising issues concerning pension benefits, dearness allowance for pensioners and the option for employees covered under the National Pension System (NPS) to shift to the Old Pension Scheme.

The demand for a five-day banking week has remained unresolved for several years. Unions have argued that several government offices and financial institutions already follow a five-day working pattern.

The latest agreement between the IBA and UFBU has temporarily averted the three-day strike, while placing the key demand for a five-day banking week back on the negotiating table.