Banking sector unions have deferred their proposed three-day nationwide strike scheduled for September 28–30 after reaching an understanding with the Indian Banks’ Association (IBA) on several pending demands.
The United Forum of Bank Unions (UFBU) took the decision after a meeting with the IBA late on Sunday. With the strike deferred, banks are expected to function normally during the previously announced strike period.
High-Level Committee to Examine Five-Day Banking
A key outcome of the discussions is the immediate formation of a high-level committee comprising representatives of the IBA and UFBU.
The committee will examine the demand to declare the remaining Saturdays as bank holidays, explore possible alternatives and consult stakeholders, including customers. At present, the second and fourth Saturdays are holidays for banks, while the first and third Saturdays are generally working days.
The formation of the committee does not mean that a five-day banking week has already been implemented. The issue remains subject to further discussions and any subsequent decisions by the relevant authorities.
PLI Scheme for Senior Bank Officers Also on Agenda
The two sides also agreed to continue discussions on the Performance Linked Incentive (PLI) scheme applicable to Scale IV and above officers.
According to the UFBU statement, discussions can begin with the IBA on possible modifications to the scheme, with proposals subsequently being considered by the government. The understanding therefore opens another channel for negotiations rather than immediately changing the existing PLI arrangement.
Other pending matters listed in the minutes of discussions held on March 8, 2024 are also expected to be taken up between the IBA and UFBU.
Banking Services to Continue Normally
The proposed strike was originally scheduled to run from September 28 to 30 and would have coincided with the half-yearly closing period for banks.
The government had earlier taken steps to reduce the impact of the proposed strike by directing public-sector banks and regional rural banks to operate on Sunday, September 27. The RBI had also approved the operation of bank branches, offices, ATM-linked branches and currency chests that day.
With the strike now deferred, customers do not face the planned three-day disruption at this stage. However, the underlying employee demands remain under discussion.
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Strike Deferred, Demands Remain Under Discussion
The latest understanding changes the immediate course of the dispute between bank unions and management. Instead of proceeding with the September 28–30 strike, the two sides will move forward with structured discussions on five-day banking, the PLI scheme and other pending issues.
The five-day working week has therefore not yet been implemented, and the committee's deliberations will determine the next stage of the discussions.