New Delhi, September 28: In big relief for bank customers, the three-day nationwide strike by public sector bank employees planned for September 28 to 30 has been put off. The unions decided to defer the strike after the Indian Banks’ Association (IBA) and the United Forum of Bank Unions (UFBU) reached an understanding at a meeting at about 9:30 pm on Sunday, September 27. Banks opened normally from Monday.
Update (October 13): The UPI merchant fee (MDR) on merchant payments above ₹2,000, mentioned below as due on October 15, has been deferred until after Diwali, with a new date to be notified. Read: UPI merchant fee rollout deferred until after Diwali
Key highlights
- Strike deferred: the proposed September 28–30 strike is postponed; banks are open as usual.
- Saturday holidays: a high-level IBA–UFBU committee will be formed on the demand to make the remaining Saturdays holidays.
- PLI scheme: changes to the performance-linked incentive scheme for Scale IV officers and above will be discussed.
- Old issues: agreement to settle soon the pending issues from the meeting of March 8, 2024.
- Note: the strike has only been deferred, not withdrawn.
What was agreed
According to ANI, the UFBU said in a circular after the meeting that the proposed agitation and strike were being deferred. Under the agreement, a high-level committee will be set up on the main demand for a five-day banking week; it will talk to all sides and look at possible options for declaring the remaining Saturdays holidays. At present banks are closed on the second and fourth Saturdays of the month.
The second big demand concerned the PLI scheme. According to the Free Press Journal, the IBA will talk to the government about changes to the PLI scheme for officers of Scale IV and above. Amar Ujala reports that the unions will also submit a revised PLI proposal, with their objections, to the government. There was also agreement to settle soon the issues agreed at the meeting of March 8, 2024, that have still not been implemented.
Agreement at a glance
| Demand | What was agreed on September 27 | Status |
|---|---|---|
| Five-day banking week (all Saturdays off) | High-level IBA–UFBU committee to explore options | Open; needs government approval |
| PLI scheme for Scale IV and above | IBA to take up changes with the government; unions to submit a revised proposal | Open |
| Pending issues from March 8, 2024 meeting | To be settled soon | Open |
| Strike of September 28–30 | Deferred | Can be revived if talks fail |
Why the unions were angry
The unions said a five-day banking week had been agreed with the IBA back in March 2024, but two and a half years later it had still not been implemented. Employees were willing to work about 40 minutes more each day in return for every Saturday off. There were also complaints of inequality between different grades of staff under the PLI scheme. The unions had already held a one-day strike on these demands on September 11 and had warned of an indefinite strike from October 26. Read our report from yesterday on the strike call and the reasons behind it here.
What it means for customers
- From Monday, cash deposits and withdrawals, cheque clearing, drafts and loan work at branches are running normally.
- The feared impact on salaries, EMIs and business payments at the end of the month has been avoided for now.
- Anyone who withdrew extra cash fearing the strike should keep it safely; UPI and net banking work as before.
What to watch
- The committee’s talks on Saturday holidays and the PLI scheme, which are now the real test.
- Whether the unions revive their agitation if there is no early decision.
- The government’s position: the finance ministry has said the five-day week is under consideration and needs the views of all stakeholders.
What it means
Customers have been spared three days of disruption at the end of the month, but the underlying dispute is unresolved. A final decision on the five-day banking week can only come with the government’s approval. Another change for digital payments was also due: the MDR rule on merchant UPI payments above ₹2,000 from October 15 (since deferred; see the update above).
This article was first published in Hindi and has been translated. The Press of Asia now publishes in English only.
Sources
- ANI: Three-day nationwide bank strike deferred after meeting between IBA-UFBU
- Free Press Journal: Bank strike scheduled for Sep 28 deferred after IBA-UFBU meeting
- Amar Ujala (Hindi): Bank strike deferred after IBA–UFBU meeting
- Upstox (Hindi): Three-day strike deferred as IBA and UFBU reach consensus
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