The proposed three-day nationwide bank strike from September 28 to 30 has been deferred, bringing relief to customers who were bracing for possible disruption to branch banking and other services.
The decision followed talks between the Indian Banks’ Association (IBA) and the United Forum of Bank Unions (UFBU), with both sides agreeing to reopen discussions on key pending demands, including a five-day banking week and the Performance Linked Incentive (PLI) scheme for senior officers.
The UFBU confirmed the decision in a circular issued after the discussions with the IBA.
With the strike deferred, banking operations are expected to continue normally during September 28-30.
The development is particularly significant for customers who depend on branch services for cash transactions, cheque clearing, loan-related work, account services and other routine banking needs.
Digital banking, UPI and ATM services were expected to remain largely available even during the proposed strike, but prolonged industrial action could have affected branch-level services.
A major demand of bank unions is the implementation of a five-day working week. Under the proposal, all Saturdays and Sundays would become weekly holidays for bank employees. At present, banks are closed on the second and fourth Saturdays of every month, while the first, third and fifth Saturdays remain working days.
The IBA and UFBU have now agreed to form a high-level committee to examine the demand and explore a solution acceptable to banks, employees and customers.
The two sides will also discuss the Performance Linked Incentive scheme applicable to Scale IV and above officers. Bank unions have objected to the scheme, arguing that it was introduced without adequate consultation.
The IBA has indicated that it will examine the concerns and consider proposing modifications to the government.
Apart from the five-day week and PLI scheme, the two sides will also take up residual issues mentioned in the minutes of the March 8, 2024 agreement.
The objective is to resolve the pending matters through discussions rather than industrial action.
With the strike now deferred, the focus will shift to the next round of talks between the IBA and UFBU and whether the discussions lead to a settlement on these long-pending issues.