Bank Strike: PSU, private, and rural banks to face nationwide service disruptions for four days starting tomorrow

Bank Strike: Banking services across states are likely to be disrupted next week as the United Forum of Bank Unions (UFBU) has announced a two-day strike on March 24 and 25 following failed talks with the Indian Banks' Association (IBA). Since March 22 is a fourth Saturday and March 23 falls on a Sunday, banks may remain non-operational for four consecutive days.

Bank strike: What services will be hit?

While digital transactions and ATMs will remain functional, services like cash deposits, cheque clearances, loan approvals, and branch operations will be severely impacted. "Clearing house, cash transactions, remittances, and advances will be affected," ANI quoted Pankaj Kapoor, VP of the All India Bank Officers Confederation (AIBOC), as saying.  

Bank unions have been pushing for a five-day workweek for over a year, citing similar norms in other financial institutions. However, despite recommendations from Indian banks, the government has not taken action.  

Also Read: Government considers raising deposit limit for payment banks, reviews financial inclusion roadmap

"We have been left with no choice but to strike. We urge the public to support us and bear with any inconvenience," said UFBU General Secretary Rupam Roy in a statement. With the strike falling on a Monday and Tuesday, and the preceding weekend being non-working days for banks, customers are advised to plan their transactions accordingly.

Why are bank unions protesting? 

The UFBU, which represents nine bank unions, has put forward several demands, arguing that the government and management have failed to address long-pending issues. One of their key demands is implementing a five-day workweek, similar to what is followed in the RBI and insurance sector. They are also pushing for increased recruitment to address staff shortages and seeking permanent positions for temporary employees. Another major concern is the protection of bank staff from verbal and physical abuse by customers.  

Also Read:Explained: What RBI’s revised prudential norms mean for urban co-operative banks

Unions are also demanding a reversal of recent performance review policies, which they claim pose a threat to job security and the autonomy of public sector banks. Additionally, they are calling for an increase in the gratuity ceiling to Rs 25 lakh, bringing it in line with government employees, and seeking income tax exemption on staff welfare benefits. The UFBU is also pressing for the government to retain at least a 51 per cent equity stake in IDBI Bank, ensuring public sector control.  

Further, they are strongly opposing the outsourcing of permanent jobs and other labour practices they deem unfair. Despite banks recommending a five-day workweek to the government a year ago, no action has been taken, prompting the unions to intensify their agitation.