The planned three-day nationwide bank strike from September 28 to 30 has been deferred after bank unions and the Indian Banks’ Association (IBA) reached an understanding following talks on Sunday.
The decision means customers will not face the widespread branch closures that had been expected this week. Banks are set to continue normal operations, including during the period leading up to the half-yearly closing on September 30.
The United Forum of Bank Unions (UFBU) had called the strike over several long-standing demands of bank employees and officers. The key issues include a five-day banking week, pension-related benefits and changes to the Performance Linked Incentive (PLI) scheme.
The decision to defer the strike came after the IBA agreed to take up some of the demands for further discussion. While the immediate industrial action has been avoided, there is no final settlement on the issues raised by the unions.
The demand for a five-day banking week has been at the centre of the unions’ campaign.
At present, banks are closed on Sundays and the second and fourth Saturdays of every month. The first and third Saturdays are generally working days.
Bank unions want all Saturdays to become holidays, effectively giving employees a Monday-to-Friday working week.
Under the latest understanding, the IBA and UFBU will set up a high-level committee to examine the proposal. The committee will study the issue and consider possible ways forward before further discussions.
This means customers should not expect an immediate change in the existing bank holiday calendar.
The two sides have also agreed to discuss the Performance Linked Incentive scheme for officers in Scale IV and above.
Bank unions have raised concerns about the existing structure and are seeking changes. The IBA will examine the matter and discuss possible modifications with the employee representatives.
Other pending issues from previous rounds of talks are also expected to be considered.
The UFBU’s decision to defer the strike came after these assurances from the IBA, giving both sides more time to work towards a broader understanding.
The proposed strike was not limited to working days.
Bank unions have also been seeking changes in pension-related benefits, a uniform dearness allowance formula for pensioners and an option for employees covered under the National Pension System to move to the Old Pension Scheme.
The unions had previously held a nationwide strike on September 11 as part of their campaign.
The latest three-day strike was planned as a further escalation after discussions failed to resolve the outstanding issues.
The strike episode also took an unexpected turn over the weekend.
Public sector banks and regional rural banks were asked to operate on Sunday, September 27, ahead of the proposed strike. The move was intended to reduce the impact of a possible three-day shutdown and ensure that essential banking work was completed before the September 30 half-yearly closing.
The Reserve Bank of India had permitted banks, offices, currency chests and certain ATM-linked branches to remain operational on Sunday.
However, with the strike deferred following Sunday’s talks, the decision to work on the weekly holiday became a talking point among employees and on social media.
Memes and reactions circulated online after employees worked on Sunday only for the planned strike to be called off hours later.
For customers, the immediate impact is limited. Banks will remain open during September 28-30, subject to individual banks’ operational arrangements.
Customers can continue to use branch services as well as ATMs, internet banking, mobile banking and UPI for routine transactions.
The decision also removes the possibility of a prolonged interruption during the half-yearly closing period, when banks handle a large volume of accounting, reconciliation and regulatory work.
However, the deferment should not be viewed as the end of the dispute.
The proposed committee on the five-day banking week, along with discussions on PLI and other employee demands, will determine the next stage of negotiations between bank unions and the IBA.
The outcome of the upcoming discussions will be important for both bank employees and customers as the industry considers how its working arrangements could evolve.