Bank Strike On 24 And 25 March: Depositors Urged To Take Prior Actions

Banking operations throughout the nation are likely to witness severe disruptions since the United Forum of Bank Unions (UFBU) has decided to organise a two-day strike on March 24 and 25. Since March 22 is the fourth Saturday, followed by March 23 being a Sunday, banks will essentially be closed for four consecutive days. Depositors using branch services are likely to experience problems with cash deposits, cheque clearance, and other physical transactions.

The UFBU, a collective body of nine bank unions, has been demanding various demands for a long time, including the adoption of a five-day workweek, more recruitment to meet staff shortages, and enhanced job security for bank staff. However, the breakdown in negotiations between the UFBU and the Indian Banks' Association (IBA) has forced the unions to intensify their agitation by resorting to this strike.

What Services Will Be Affected?

Although online banking services, ATMs, and UPI payments will remain operational, a number of critical banking activities will be disrupted. This implies that customers looking forward to cheque clearances, demand drafts, or other physical bank transactions could have to wait until normal operations resume on March 26.

Moreover, services such as loan sanctioning, account opening, and customer service through branches will be out of order, resulting in a lag in financial processes.

Why Bank Unions Are Protesting?

The UFBU has mentioned several longstanding issues that are still pending resolution despite repeated negotiations with bank management and government officials. The main demands are:

• Five-day workweek: Unions have been pushing for a five-day workweek, a system already practised by the Reserve Bank of India (RBI) and the insurance industry. Banks suggested this adjustment to the government more than a year ago, but nothing has been done.

• Recruitment on a larger scale: Unions claim public sector banks are short-staffed, causing work congestion and weak customer service. They call for fresh recruitment to cope with the increasing workload.

• Safety of bank employees: Verbal and physical harassment of bank employees by angry customers irate at delays and inefficiency in services has been on the rise. Safeguards and more stringent policies to cover employees are desired by the unions.

• Reversal of performance appraisal policies: Employee performance appraisals have recently changed, leading to apprehensions regarding job security. Unions argue that these policies place undue pressure and undermine the independence of public sector banks.

• Improved retirement benefits: UFBU is calling for the gratuity limit to be raised to Rs 25 lakh, as extended to government employees. They are also demanding exemption from tax on several staff welfare benefits.

• Resistance to outsourcing: Bank unions reject vehemently the growing practice of outsourcing permanent posts, which they claim creates job uncertainty and impacts the quality of services.

• Government ownership of IDBI Bank: The unions prefer the government holding at least 51 per cent equity in IDBI Bank so that it would continue to be under public sector management.

What Should Depositors Do?

With a four-day banking holiday, depositors must take precautions to avoid inconvenience. The following are some measures they can adopt:

• Withdraw Cash in Advance: Although ATMs will be functional, they can get depleted of cash as there will be more withdrawals. It is better to maintain enough cash for necessary expenses.

• Make Use of Digital Transactions: UPI, net banking, and digital wallets will still operate. Customers must make use of these for payments and transfer of money.

• Clear and Deposit Cheques Early: Because cheque clearings will be suspended, customers must clear any outstanding deposits prior to March 21.

• Make Advance Loan and EMI Payments: Anyone who has EMIs, credit card payments, or other payments falling due during this time needs to make them in advance to prevent late fees.

• Schedule Business Transactions: Companies that use bank transfers and cheque payments should make important transactions prior to the start of the strike.

How Will This Strike Affect the Banking Industry?

The impending strike has the potential to disrupt financial transactions across industries, as companies and individuals who are reliant on physical banking services stand to be affected. Though digital banking options will mitigate the effect, rural and semi-urban regions, where there is high dependence on branch banking, will be severely inconvenienced.

The strike also adds further pressure on the government and banking authorities to settle the long-pending demands of workers. If matters continue to remain unresolved, unions could turn to further agitation, possibly resulting in further disruptions in the months ahead.

In the meantime, clients are advised to take proactive measures in controlling their financial transactions and not be inconvenienced by unnecessary delays arising from the four-day closure. The result of this strike may set the tone for future policy reforms in the banking industry, especially in matters concerning work conditions and employee well-being.

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