Bank customers will not face the three-day nationwide strike that was scheduled to begin on September 28. The United Forum of Bank Unions (UFBU) has deferred the strike after reaching an understanding with the Indian Banks’ Association (IBA) following discussions on Sunday.
The strike was planned from September 28 to 30 and could have affected banking services across the country. Its deferment means bank branches are expected to function normally during the period, including on September 30, when banks undertake their half-yearly closing activities.
The decision followed discussions on several demands raised by bank employees and officers. The most prominent among them is the long-standing demand for a five-day banking week, along with issues related to pension benefits and the Performance Linked Incentive (PLI) scheme.
The latest development does not mean that the demands have been accepted. Instead, the two sides have agreed to continue discussions on the outstanding issues.
Five-day banking week still under discussion
The demand to make all Saturdays holidays remains one of the main issues between bank unions and the IBA.
Banks currently remain closed on Sundays and the second and fourth Saturdays of every month. The first and third Saturdays are generally working days.
Bank unions want the system changed to a Monday-to-Friday schedule, giving employees Saturdays and Sundays off.
As part of the latest understanding, the IBA and UFBU will form a high-level committee to examine the proposal. The committee will study the issue and consider possible options before further discussions take place.
This means there will be no immediate change to the existing banking schedule. Customers will continue to follow the current bank holiday arrangements until a formal decision is taken.
PLI scheme also moves forward
Another issue that will now receive attention is the Performance Linked Incentive scheme for officers in Scale IV and above.
Bank employee organisations have raised concerns about the existing arrangement and want changes to the scheme. The IBA has agreed to discuss the matter with the unions and consider possible modifications.
Several other pending issues from earlier discussions between the two sides are also expected to be taken up.
The unions agreed to defer their proposed agitation after receiving assurances that these matters would be discussed.
Why unions had called the strike
The proposed strike was the result of several unresolved demands from bank employee organisations.
Apart from the five-day banking week, the unions have 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.
Bank unions had already observed a nationwide strike on September 11 as part of their campaign.
The latest three-day strike was planned as further pressure on the IBA to address the outstanding issues.
Sunday banking adds another twist
The proposed strike also led to an unusual development over the weekend.
Public sector banks and regional rural banks were asked to remain open on Sunday, September 27, ahead of the planned strike. The arrangement was intended to ensure that customers could complete essential transactions and that banks could manage their work before the half-yearly closing.
The Reserve Bank of India had permitted banks, offices, currency chests and certain ATM-linked branches to operate on Sunday.
The strike was then deferred after the talks on Sunday. This quickly became a talking point among bank employees, with social media users sharing memes and reactions about employees having worked on a holiday just before the strike was called off.
What customers need to know
The immediate relief for customers is that banking services will continue normally from September 28 to 30.
Customers can visit branches for regular transactions, while digital channels such as UPI, mobile banking, internet banking and ATMs will continue to provide alternative services.
The deferment is particularly significant because September 30 marks the half-yearly closing, a period when banks handle additional accounting, reconciliation and regulatory work.
However, the underlying issues remain unresolved.
The proposed committee on the five-day banking week, along with discussions on PLI, pension benefits and other employee demands, will now determine the next phase of negotiations.
The focus has therefore shifted from a possible three-day disruption to a fresh round of talks.
