Three-Day Bank Strike Deferred After IBA-UFBU Understanding

NEW DELHI, Sept 28: The proposed three-day nationwide bank strike scheduled for September 28 to 30 has been deferred after the Indian Banks’ Association and the United Forum of Bank Unions reached an understanding following talks on Sunday night.

The decision came after a meeting between representatives of the IBA and UFBU on September 27. The union forum subsequently informed its constituent organisations that the planned agitation and strike action would be deferred following the understanding reached during the discussions.

A key outcome of the meeting was an agreement to establish a high-level committee comprising representatives of the IBA and UFBU. The committee will examine the demand for declaring the remaining Saturdays as holidays and will explore possible alternatives after consulting relevant stakeholders.

The issue of a five day banking week has been one of the principal demands raised by bank unions. At present, bank branches generally remain closed on the second and fourth Saturdays of each month, while other Saturdays are working days.

The proposed change would effectively make all Saturdays holidays, creating a five-day working week for bank employees. The demand has been under discussion for several years and has remained pending despite earlier recommendations.

The committee is expected to examine the issue in detail and work towards a framework that takes into account the interests of employees, banks and customers. The latest understanding, however, does not itself introduce a five-day banking schedule.

The discussions between the two sides also covered the Performance Linked Incentive scheme for officers in Scale IV and above. According to the understanding, discussions will be held on possible modifications to the scheme before any proposed changes are taken up with the government.

The union side has raised concerns regarding the existing arrangements and sought changes to address issues affecting officers covered by the scheme. The IBA-UFBU discussions are expected to provide a platform for examining those concerns.

The two sides also agreed to take up residual issues referred to in the minutes of their discussions held on March 8, 2024. These matters will be considered with a view to finding solutions at the earliest.

The deferment came shortly before the proposed strike was due to begin. The development means that the immediate disruption that had been anticipated in branch-based banking services from September 28 to 30 has been avoided.

The proposed action had assumed significance because September 30 also marks the half-yearly closing period for banks. A strike during the closing period could have affected several physical banking activities, including branch operations and certain transaction-related processes.

Earlier, the government and bank managements had taken measures to prepare for possible disruption. Public sector banks and regional rural banks had also been directed to remain operational on Sunday, September 27, in view of the proposed strike and the preceding weekend holiday.

The Reserve Bank of India had approved the continued operation of bank branches, offices, ATM-linked branches and currency chests on September 27. The move was intended to ensure that customers could complete essential banking work before the proposed strike period.

With the strike now deferred, attention will shift to the discussions between the banking association and employee unions. The formation of the committee on Saturday holidays is expected to be one of the key areas of follow-up.

The understanding also indicates that negotiations will continue on issues that have remained unresolved between the two sides. The approach allows the IBA and UFBU to address the outstanding matters through discussions rather than immediate industrial action.

For customers, the deferment provides continuity in physical banking services during the three days that had been identified for the strike. Digital banking channels, including online banking and mobile-based services, had been expected to remain available even during the proposed agitation, although some physical processes could have faced delays.

The development also removes the possibility of a disruption coinciding with the end of month banking cycle. Businesses and customers that rely on branch-based services can therefore continue their scheduled transactions without the three-day closure that had been announced earlier.

The next stage will depend on the functioning of the high-level committee and the discussions on the remaining demands. The five-day banking week proposal will require further examination, while the PLI related concerns and other residual matters will also remain on the negotiation agenda.

The latest agreement reflects a shift from the immediate strike programme towards structured discussions between the banking industry body and employee unions. The outcome of those talks will determine how the pending issues are addressed in the coming period.