The United Forum of Bank Unions (UFBU) has deferred its planned three-day nationwide bank strike after reaching an understanding with the Indian Banks’ Association (IBA) following a late-night meeting on September 27. The strike was scheduled for September 28 to 30 and could have disrupted banking services across the country, particularly during the half-yearly closing period.
The decision provides relief to millions of bank customers who were preparing for possible disruptions to branch-based services. With the strike deferred, banks are expected to operate normally during the proposed strike period.
Five-day banking week demand to be discussed
A key demand of the bank unions is the implementation of a five-day banking week by declaring all Saturdays holidays. At present, banks remain closed on the second and fourth Saturdays of each month.
Under the understanding reached with the IBA, a high-level joint committee comprising representatives of the IBA and UFBU will be formed to examine the demand. The committee will consider different options and consult stakeholders, including customers, before working towards a solution.
The unions have been pursuing the five-day banking demand for several years. In March 2024, the IBA had agreed in principle to the proposal, with an arrangement involving additional working time on weekdays, but the proposal has not yet been implemented.
PLI scheme also on the agenda
Another major issue raised by the unions concerns the Performance Linked Incentive (PLI) scheme applicable to senior bank officers.
The UFBU and IBA have agreed to begin discussions on possible changes to the scheme for Scale IV and above officers. The discussions are expected to consider concerns raised by the unions before any proposal is taken forward with the government.
The two sides will also discuss other pending matters mentioned in the minutes of their March 8, 2024 discussions, with the aim of resolving them at the earliest.
Strike had raised concerns among customers
Before the strike was deferred, banks and customers had already begun preparing for possible disruption. Public-sector and regional rural banks were directed to remain open on Sunday, September 27, giving customers an additional opportunity to complete essential branch-related transactions.
The proposed strike was expected to involve around 8 lakh bank officers and employees and could have affected a large number of branches across the country. Services requiring physical branch staff, including certain cash, cheque and document-related transactions, were expected to face disruption. Digital banking and other self-service facilities were expected to continue operating.
Strike action deferred for now
Following the agreement with the IBA, the UFBU said it had decided to defer its planned agitation programmes and strike actions. The development means the immediate three-day strike has been put on hold while discussions on the unions’ demands move forward.
The latest development shifts the focus from a nationwide banking disruption to negotiations over five-day banking, the PLI scheme and other pending service-related issues.
