Bank unions defer the 28–30 September strike after talks with the IBA

The United Forum of Bank Unions deferred a nationwide strike called for 28, 29 and 30 September. The Times of India reported a UFBU circular dated 27 September, after a meeting with the Indian Banks' Association at 9:30 pm. Mint reported the first line from UFBU: "After detailed discussions, understandings have been reached and hence our agitations and strike actions are deferred. Details follow." BusinessLine and The Times of India quoted the circular that followed. It said the proposed agitational programmes and strike actions will be deferred.

That circular, as those papers quoted it, records three points. A high-level committee of the IBA and UFBU will be formed immediately to consider declaring the remaining Saturdays as holidays, to look at alternatives, and to seek a solution acceptable to stakeholders, "more importantly, the customers." On the performance-linked incentive for officers in Scale IV and above, talks can start so the IBA can propose changes to the government. Residual issues in the minutes of 8 March 2024 are to be discussed for a quick resolution.

C.H. Venkatachalam, general secretary of the All India Bank Employees Association, said there will be talks on what he called the discriminatory incentive scheme for officers, and on other pending issues. He told The Hindu: "All banks will function normally now. There will be no strike." The Hindu reported an online meeting of about an hour, with seven union representatives and six banking executives. Mint said the precise terms had yet to be formally disclosed.

The main demand is a five-day week. Banks now close on the second and fourth Saturdays. Mint reported an in-principle agreement on 8 March 2024: all Saturdays off, and weekday hours longer by around 40 minutes, sent to the government and still pending. The Times of India reported that the finance ministry had said it made no commitment. Mint said a revised incentive framework was kept in abeyance. The Indian Express described the strike call as also seeking withdrawal of the scheme. The Sunday circular speaks of talks on modifications.

UFBU, an umbrella of seven unions, claims to represent about 90 per cent of the workforce. It served notice on 26 August and struck for one day on 11 September. Other demands in the reports are updated pensions, one dearness-allowance formula for pensioners, and a move from the National Pension System to the old pension scheme. Conciliation earlier in the week brought no result. UFBU had said it would consider a deferral if five-day banking moved. Mint reported a threat of an indefinite strike from 26 October. The later circular defers agitational programmes and strike actions, and names no new date.

The dates would have followed the weekend of 26 and 27 September and would have included 30 September, the half-yearly closing. On 23 September the finance ministry said public sector banks and regional rural banks would open on Sunday, 27 September. The Reserve Bank approved branches, offices, ATM-linked branches and currency chests, subject to the law. The All India Bank Officers' Association told members not to attend that Sunday, citing the Industrial Disputes Act. The Indian Express said a strike would have been expected to affect public sector and regional rural banks, while private banks stayed open, and that the ministry had advised September salaries on 25 September. Before the deferral, State Bank of India, Union Bank, Canara Bank and Bank of Baroda told customers to use digital channels, including UPI, if branches were affected.

What's next

The reported next step is the joint committee on the remaining Saturdays, and talks on the incentive scheme and the 8 March 2024 issues. The circular defers the strike actions and sets no new date. Venkatachalam told The Hindu that banks will function normally and that there will be no strike.