Bank unions have deferred their proposed three-day nationwide strike scheduled to begin Monday, September 28, after late-night talks with the Indian Banks’ Association (IBA), averting a major disruption to banking services across the country.
The strike, called by the United Forum of Bank Unions (UFBU), was scheduled from September 28 to 30 and would have coincided with the half-yearly closing of bank accounts.
With the industrial action now deferred, bank branches are expected to function normally on Monday.
High-Level Committee to Examine Five-Day Banking Week
The breakthrough came after a meeting between representatives of the IBA and UFBU on Sunday night.
According to a circular issued by the UFBU, both sides agreed to immediately form a high-level committee to examine the unions’ long-standing demand for a five-day banking week.
The committee will consider the proposal to declare the remaining Saturdays as bank holidays, explore alternative arrangements and consult stakeholders, including customers, before working towards a mutually acceptable solution.
Banks currently remain closed on the second and fourth Saturdays of every month.
Importantly, the agreement does not mean that a five-day banking week has been approved. The committee will only examine the demand, and the UFBU circular does not specify a deadline for reaching a final decision.
Other Agitation Programmes Also Deferred
Following the understanding with the IBA, the UFBU also decided to defer its other planned agitation programmes.
“In view of the above, it was agreed by the UFBU that the proposed agitational programmes and strike actions will be deferred,” the union forum said in its circular.
No fresh date for the three-day strike has been announced.
The unions had earlier warned that they could launch an indefinite strike from October 26 if their key demands remained unresolved.
PLI Scheme Also on Discussion Table
The IBA and UFBU also agreed to hold discussions on the Performance Linked Incentive (PLI) scheme applicable to officers in Scale IV and above.
According to the understanding, the IBA will examine the objections raised by unions and associations and may propose modifications to the government.
Other unresolved issues listed in the minutes of discussions held on March 8, 2024, will also be taken up for an early resolution.
Why Were Bank Unions Planning a Strike?
The five-day banking week was one of the main demands behind the proposed nationwide strike.
Bank unions have argued that employees face long working hours and have sought holidays on all Saturdays, bringing the banking sector closer to a five-day work schedule.
The demand has remained under discussion for more than two years.
The unions have also raised issues related to pensions, a uniform dearness allowance formula for pensioners, employees covered under the National Pension System and other pending service-related matters.
Strike Could Have Hit Half-Yearly Closing
The timing of the proposed strike had raised concerns because September 30 marks the half-yearly financial closing for banks.
The Finance Ministry had taken several steps to minimise potential disruption and had asked public sector banks and Regional Rural Banks to remain operational on Sunday, September 27, ahead of the planned walkout.
The government had also asked banks to ensure continuity of essential services and adequate cash availability at ATMs.
With the strike now deferred, customers are not expected to face the three-day branch disruption that had earlier been anticipated.
However, the central issue behind the agitation — the demand for a five-day banking week — remains unresolved and will now be taken forward through discussions between the IBA and UFBU.
