Banking Services Face Major Disruption as Unions Proceed with Nationwide Strike
Banking operations at public sector banks across the country are likely to face significant disruption on Tuesday as bank unions move forward with a nationwide strike. This industrial action aims to press for the immediate implementation of a five-day work week, a demand that has been pending despite previous agreements.
Strike Called After Failed Conciliation Meeting
The strike has been called by the United Forum of Bank Unions (UFBU), which serves as an umbrella body for nine unions representing both bank officers and employees. This decision comes after a conciliation meeting with the chief labour commissioner on January 23 failed to yield any assurance regarding their primary demand.
With banks already scheduled to be closed on January 25 (Sunday) and January 26 (Republic Day), the strike on January 27 is expected to disrupt branch-level services for three consecutive days. This extended closure could create challenges for customers who rely on in-person banking services.
C H Venkatachalam, General Secretary of the All India Bank Employees Association (AIBEA), which is a constituent of UFBU, explained the situation to PTI. "Despite detailed discussions during the conciliation proceedings, there was no assurance on our demand. Hence, we have been compelled to proceed with the strike action," he stated.
Which Banking Services Will Be Affected?
The strike is expected to impact several critical branch-level services at public sector banks, including:
- Cash deposits and withdrawals
- Cheque clearances
- Administrative work and documentation
- Customer service at physical branches
Major public sector banks such as State Bank of India (SBI), Punjab National Bank (PNB), and Bank of Baroda are likely to experience significant disruption. However, operations at major private sector lenders including HDFC Bank, ICICI Bank, and Axis Bank are expected to remain largely unaffected since their employees are not part of the unions participating in this strike action.
Digital banking services, including UPI transactions and internet banking platforms, will continue to function normally. However, ATM cash availability could face localized issues due to potential logistical delays in replenishment during the strike period.
Core Demand: Implementation of Five-Day Work Week
The unions are demanding that all Saturdays be declared holidays, a proposal they claim was agreed upon during the 12th Bipartite Settlement signed with the Indian Banks' Association (IBA) in March 2024. Despite this agreement, the government has yet to formally notify and implement this change.
Rupam Roy, General Secretary of the All India Bank Officers' Confederation (AIBOC), expressed frustration with the situation. "It is unfortunate that the government is not responding to our genuine demand. There would be no loss of man-hours as we have agreed to work an extra 40 minutes daily from Monday to Friday," he explained.
Currently, banks remain open on the first, third, and fifth Saturdays of every month, creating what union leaders describe as an inconsistent and inefficient work schedule.
Union Leaders Emphasize Customer-Centric Approach
Union leaders have been careful to frame the strike as a movement aimed at improving the banking system rather than inconveniencing customers. They argue that a more sustainable work schedule would ultimately benefit both bank employees and the customers they serve.
L Chandrasekhar, General Secretary of the National Confederation of Bank Employees (NCBE), clarified the unions' position. "This movement is not against customers, but for a sustainable, humane, and efficient banking system. A rested banker serves the nation better. A balanced workforce strengthens financial stability. Five-day banking is not a luxury; it is an economic and human necessity," he stated.
Banks Prepare for Possible Disruption
Several public sector banks, including the State Bank of India, have already informed stock exchanges about the potential impact of the strike. These regulatory filings acknowledge that while banks have made necessary arrangements to ensure normal functioning, the strike may still affect operations.
SBI stated in its regulatory filing on Friday, "We advise that while the bank has made necessary arrangements to ensure normal functioning in its branches and offices on the day of strike, it is likely that work in the bank may be impacted by the strike."
The banking sector's response to this industrial action reflects the tension between operational continuity and employee demands for improved working conditions. As Tuesday approaches, customers of public sector banks are advised to plan their banking needs accordingly, utilizing digital channels where possible and anticipating potential delays in branch-level services.
