Bank Strike Deferred: Banks to Remain Open From September 28-30 After UFBU-IBA Talks

Branches of the banks will stay open between September 28 and September 30 after the United Forum of Bank Unions (UFBU) postponed their proposed three-day strike countrywide after late night discussions with Indian Banks Association (IBA). 

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The strike was due to begin on Monday, September 28, and continue until September 30. The decision to put the industrial action on hold came after the UFBU and IBA met at 9:30 pm on September 27. The timing of the proposed strike was significant as it coincided with the half-yearly closing period for banks. 

With the strike now deferred, customers can expect banking services to operate normally over the three days, subject to regular working hours and any state- or branch-specific holidays. 

Why had bank unions called the strike? 

The upcoming national strike revolved around various matters pending between the bank unions and the government. 

One of the major demands included the implementation of the five-day week system where both Saturdays and Sundays would be holidays. 

Presently, banks are shut on the second and fourth Saturdays while they work on the first and third Saturdays every month. 

Another issue raised by the union concerned the performance-linked incentive (PLI) system for the scale IV and above employees. 

Apart from these demands, certain residual matters recorded in the minutes of a meeting held on March 8, 2024, remain unresolved. 

What changed after the September 27 meeting? 

The discussions between the IBA and UFBU paved the way for further negotiations rather than proceeding with the three-day strike. 

As part of the understanding, a high-level committee comprising representatives of the IBA and UFBU will be formed to examine the demand for declaring the remaining Saturdays as bank holidays. 

The committee is expected to consider possible alternatives and work towards an arrangement that takes into account the interests of different stakeholders, including bank customers. 

The PLI scheme will also return to the discussion table. The IBA will propose modifications to the government aimed at addressing observations made by unions and associations regarding the scheme. 

The two sides will additionally discuss the unresolved matters recorded in the March 8, 2024 meeting minutes. 

Banks to function normally during September 28-30 

The deferment means the nationwide strike scheduled for September 28, 29 and 30 will no longer take place. 

Bank branches are therefore expected to remain operational during the period, according to their normal working schedules and subject to any applicable local holidays. 

The planned strike could have disrupted branch operations and other banking services because it was scheduled during the half-yearly closing period. That disruption has now been avoided following the decision to defer the industrial action. 

However, the issues behind the strike have not been fully resolved. Discussions over the five-day banking week, changes to the PLI scheme and other pending matters will continue between the IBA and UFBU through the proposed consultation process.