Bank branches across India will remain operational during the September 28-30 period after the United Forum of Bank Unions (UFBU) deferred its planned three-day nationwide strike following assurances from the Indian Banks’ Association (IBA) on key demands, including a five-day working week.
The decision came as banks approached the half-yearly closing period, when customers and businesses may have time-sensitive transactions to complete. The strike had been scheduled to begin on Monday, prompting banks to advise customers to finish important work in advance. With the industrial action deferred, branches are expected to function as usual during the announced strike period.
The UFBU said the decision followed an understanding with the IBA to establish a high-level committee immediately to examine the demand for declaring the remaining Saturdays as holidays. The committee will include representatives of both sides and is expected to consider possible alternatives after discussions with stakeholders, including customers.
The five-day banking week has been a long-standing demand of bank unions. Under the proposal, Saturday and Sunday would become weekly holidays, though the issue requires discussions between the unions and the IBA before any possible recommendation is made to the government. The UFBU said the committee would work towards a solution acceptable to all stakeholders.
The two sides will also discuss the Performance Linked Incentive scheme applicable to Scale IV and above officers. According to the UFBU statement cited by PTI, discussions may begin on possible changes to the scheme, which could then be proposed to the government after considering concerns raised by unions and associations.
The unions and the IBA have further agreed to discuss other issues listed in minutes dated March 8, 2024, with the stated aim of resolving them at the earliest. The UFBU had earlier said industrial action was being considered because commitments in an agreement with the government, signed more than two-and-a-half years earlier, had not been implemented.
Narendra Sharma, UFBU Himachal Pradesh convenor and president of the Bankers United Forum of Himachal Pradesh, had identified the five-day banking week and withdrawal of the new Performance Linked Incentive scheme as the union’s principal demands. He said the scheme had been implemented unilaterally by the Department of Financial Services and that the delay in implementing commitments had left unions with no option but to begin an agitation.
Some banks had remained open on Sunday following directions from the Finance Ministry and the Reserve Bank of India, while customers had been advised to complete essential transactions before the proposed strike. The deferral means banks will remain open for five days during the week, with a national holiday for Gandhi Jayanti falling on Friday, October 2. October 3 will be the first Saturday of the month, when banks are scheduled to remain open.
October will also include several regional and festival holidays. Customers have been advised to check the state-specific bank holiday calendar before visiting a branch. The high-level committee’s discussions and the handling of the remaining issues from the March 8, 2024 minutes will determine the next steps on the unions’ demands.
