Bank strike called off: Will banks open on Monday? What customers need to know

The nationwide bank strike planned for September 28-30 has been deferred after late-night talks between UFBU and IBA. Banks are expected to operate normally from Monday as talks continue over a five-day banking week and other demands.

Bank unions have deferred their proposed three-day nationwide strike scheduled to begin on September 28. The decision came after a late-night meeting between the United Forum of Bank Unions and the Indian Banks' Association on Sunday. The two sides agreed to continue talks on Saturday holidays and other pending demands.

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Will banks be open on Monday, September 28?

With the strike deferred, banks are expected to operate normally from Monday. The decision removes the immediate risk of disruption to branch services, including cash deposits and withdrawals, cheque-related work and other transactions that need bank staff.

The strike had been planned for three consecutive days from September 28 to 30. Its timing had caused concern because September 30 is the half-yearly closing date for banks. The government had earlier asked banks to prepare for possible disruption and ensure ATMs had enough cash.

Why did bank unions defer the three-day strike?

The breakthrough came at a meeting between the IBA and UFBU at around 9.30 pm on Sunday. According to a UFBU circular dated September 27, the two sides reached an understanding on several issues, leading the unions to defer their proposed strike and agitation.

A high-level committee comprising representatives of the IBA and UFBU will now be formed to discuss the unions' demand to declare all remaining Saturdays as bank holidays. The committee will examine possible options, consult stakeholders and work towards an arrangement acceptable to banks, employees and customers.

The five-day banking week has been the main issue behind the unions' latest protest. Bank branches currently close on the second and fourth Saturdays of every month. Unions want all Saturdays declared holidays. The proposal was agreed upon between the IBA and unions during the March 2024 wage settlement and sent to the government for approval, according to the unions.

What happens to the PLI dispute?

The two sides also agreed to resume discussions over the performance-linked incentive scheme for Scale IV and higher officers. The talks will consider changes that could be proposed to the government to address objections made by bank unions and officers' associations.

Other issues recorded in the minutes of the March 8, 2024, meeting will also be taken up by the two sides for an early settlement, according to the UFBU circular.

Why was the September 28-30 bank strike planned?

UFBU had called the strike after earlier talks failed to produce an agreement on the five-day banking demand. The umbrella organisation represents seven bank unions and about eight lakh employees, according to The Indian Express.

The dispute had prompted the government to take the unusual step of opening public sector banks and regional rural banks on Sunday, September 27, ahead of the planned strike. The Reserve Bank of India had approved the opening of branches, offices, ATM-linked branches and currency chests.

Following Sunday's talks, UFBU said its proposed agitation programmes and strike action would be deferred. Discussions with the IBA will now continue on Saturday holidays, the PLI scheme and the other issues left unresolved from the 2024 settlement.

The background on the five-day week, the March 2024 agreement and the scale of UFBU representation is supported by reporting from The Indian Express. The government had also made contingency plans because the proposed strike covered September 28-30 and coincided with the half-yearly closing on September 30.

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