No Bank Shutdown Today as Unions Defer Strike After IBA Understanding

Banks are expected to remain open across India on September 28 after the United Forum of Bank Unions (UFBU) deferred its proposed three-day nationwide strike following late-night discussions with the Indian Banks’ Association (IBA). The strike had been scheduled from September 28 to September 30, but a UFBU circular issued on September 27 said an understanding had been reached between the two sides. Customers therefore should not expect a nationwide bank shutdown on Monday.

The UFBU said the decision followed a meeting with the IBA that began at around 9.30 pm on September 27. The union body said its proposed strike and other agitation programmes had been deferred following the understanding reached during the discussions. Bank branches are consequently expected to function normally on September 28, although customers requiring services that specifically depend on branch staff may check with their individual banks for any local or branch-specific changes.

The main issue to be examined is the unions’ demand for a five-day banking week, which would make all Saturdays holidays. The UFBU and IBA have agreed to establish a high-level committee comprising representatives of both sides to examine the proposal. The committee will consider possible alternatives and consult stakeholders, including customers, before working towards a solution. Until any further decision is taken, the existing arrangement of bank holidays on the second and fourth Saturdays and Sundays remains in place.

Also Read: UFBU Calls Nationwide Bank Strike On September 11 Over Long-Pending Employee Demands

The strike has been deferred rather than cancelled, with the issues raised by the unions continuing to remain under discussion. The talks will also cover the Performance Linked Incentive scheme for Scale IV and above officers, with government participation proposed to address observations raised by unions and associations. Other pending matters listed in the minutes of the March 8, 2024 meeting between the IBA and UFBU will also be discussed as the two sides seek an early resolution.

Bank unions have raised several other demands, including issues related to pension benefits and dearness allowance for pensioners. They have also sought an option for employees covered under the National Pension System to move to the Old Pension Scheme. The UFBU had conducted a one-day nationwide strike on September 11 over these and other issues before announcing the proposed three-day strike for September 28 to 30. The latest understanding has temporarily deferred that planned action.

For customers, the immediate effect is that the proposed three-day nationwide disruption has been deferred and regular banking services are expected to continue. Digital services such as UPI, mobile banking, internet banking and ATMs can also continue to be used, subject to normal availability. However, the deferment does not mean that the five-day banking week has been approved or that all Saturdays will become holidays. The high-level committee will examine the proposal, while the existing Saturday holiday arrangement remains unchanged for now.

Also Read: UFBU Calls Nationwide Bank Strike On September 11 Over Long-Pending Employee Demands