Bank Strike preparations have intensified as the Finance Ministry called a meeting with the heads of public sector banks (PSBs), regional rural banks (RRBs), the Indian Banks’ Association (IBA) and NABARD ahead of a proposed nationwide 3-day bank strike from September 28.

Key Highlights

• Finance Ministry reviews contingency plans as banks prepare for proposed three-day nationwide strike beginning September 28.
• Customers could face banking disruptions for up to five consecutive days, including the September 26-27 weekend.

The meeting will be chaired by the Secretary of the Department of Financial Services (DFS) and will discuss contingency plans and measures to ensure that the banking services are provided during the proposed strike.

Finance Ministry Reviews Bank Strike Preparedness

The government is expected to discuss arrangements aimed at ensuring continuity of banking operations and minimising disruption to customers. The timing of the proposed industrial action is significant as it coincides with the half-yearly closing period for banks.

The meeting comes after the United Forum of Bank Unions (UFBU), an umbrella body representing seven bank employee and officer unions, called for the nationwide strike.

Why Are Bank Employees Planning a Strike?

The implementation of a five-day banking week is among the key demands of the unions. UFBU had previously organised a nationwide strike on September 11 over the same issue.

In addition to a five-day work week, the unions are seeking changes in India's pension system, a uniform dearness allowance formula for pensioners and an option for employees covered under the National Pension System (NPS) to shift to the old pension scheme.

The unions have claimed that UFBU represents nearly 90% of India’s banking workforce.

Bank Strike Could Affect Services for Five Days

The proposed strike may have a wider impact because September 26 and 27 fall on a weekend. Consequently, customers could potentially face disruptions to normal branch operations for up to five consecutive days, from September 26 to September 30.

Services that could be affected include cheque processing, cash transactions and other branch-dependent banking activities. During the previous strike, over-the-counter banking services, cash transactions and cheque clearances were affected in several parts of the country.

Also Read: Countrywide Bank Strike Today: SBI and PNB Issue Alerts

Bank Strike: What Happened in Previous Protest?

Banking activities were generally unaffected in Mumbai in the last strike, but were disrupted in Madhya Pradesh, Goa, Telangana, Uttar Pradesh and West Bengal, especially in smaller cities and towns.

A strike notice was issued by the unions on 26th August. Thereafter, conciliation meetings were held between union representatives and representatives of the IBA and the government, without success in settling the demand for five-day work week.