Bank strike disrupts PSB operations across states, digital services normal

Branch-level operations at public sector banks were hit across several states, affecting cash transactions and cheque clearances, while digital banking services remained available

Work at branches of public-sector banks (PSBs) was disrupted on Friday in several parts of the country with employees and officers joining a nationwide strike called by the United Forum of Bank Unions (UFBU), according to bank officials. 

The strike affected over-the-counter services, cash transactions, and cheque clearances. The impact, however, varied significantly across geographies. While things were largely normal in Mumbai, disruption was reported in Madhya Pradesh, Goa, Telangana, Kolkata and Uttar Pradesh, particularly in Tier-III and Tier-IV cities, bankers said. 

However, the union said in Mumbai more than 5,000 employees and officers assembled at Azad Maidan. 

The UFBU said the strike brought operations in Maharashtra to a standstill, with more than 100,000 employees and officers in the state participating in the strike. Rallies and demonstrations were held at more than 25 centres in Maharashtra. “Clearing exchanges could not take place and over-the-counter transactions were virtually zero. Money-market and foreign-exchange operations were also affected, with only limited transactions taking place,” the union said. 

 

“In Mumbai even employees from the head office were deployed in branches to ensure operations continued. However, in places such as Kolkata and Uttar Pradesh, employees were being stopped from entering branches, which makes it difficult to carry out operations,” said a branch manager at Bank of Baroda. 

The union said attempts by some banks to keep branches open by deploying Scale IV and above executives did not normalise operations because employees and officers were not available at counters. 

In Mumbai, despite branches remaining open in some locations, transaction volumes were significantly low. Branch-level transactions fell to around one to three, a branch manager said. 

“The branches may appear to be open, but there will be limited activity inside them,” a banker said in the early part of the day, adding that cheque-related and other physical banking services were affected. 

Banks had issued advisories to customers ahead of the strike, asking them to complete important transactions before the strike.  

State Bank of India (SBI), in its advisory, said while it was making efforts to provide essential services, customers were requested to use ATMs, customer-service points and internet banking. Digital-banking channels, meanwhile, continued to function. Internet and mobile banking, Unified Payments Interface, and other online services remained available. Banks also said they had ensured adequate cash availability at ATMs to meet customer requirements. 

 “ATMs have been filled with cash and digital channels are continuing to work. Withdrawals and deposits at branch level have been affected,” said a branch manager at Union Bank of India.  The UFBU comprises seven unions — All India Bank Employees’ Association (AIBEA), All India Bank Officers’ Confederation (AIBOC), National Confederation of Bank Employees (NCBE), All India Bank Officers’ Association (AIBOA), Bank Employees Federation of India (BEFI), Indian National Bank Officers’ Congress (INBOC) and Indian National Bank Employees’ Federation (INBEF). The unions want a five-day banking week to start immediately and residual issues to be settled. They are also opposing the performance-linked incentive (PLI) scheme introduced by the government. The strike primarily affected PSBs, while private-sector banks largely continued normal operations. 

The UFBU said the response to the strike demonstrated the workforce’s support for its demands and warned that further industrial action could follow if the issues remained unresolved.  

A three-day strike is scheduled from September 28 to 30, followed by an indefinite strike from October 26. The September-end strike can have a greater operational impact because it coincides with the half-yearly closing period for banks, and may disrupt branch-based transactions and other physical banking services during a critical period, banking officials said.