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In recent developments, the nationwide bank strike initially planned for March 24 and 25, 2025, has been postponed. This decision came after productive discussions between the United Forum of Bank Unions (UFBU), the Indian Banks’ Association (IBA), and the Finance Ministry. As a result, banks across India are operating normally today, March 24, 2025.
Background of the Planned Strike
The UFBU, representing nine Banking services employees’ associations and over eight lakh bank employees, had called for a two-day nationwide strike to address several key demands:
- Implementation of a Five-Day Workweek: The unions advocated for a five-day workweek, aligning with other sectors to promote work-life balance.
- Withdrawal of Recent DFS Directives: Concerns were raised over directives from the Department of Financial Services (DFS) related to performance reviews and performance-linked incentives (PLI), which unions felt could jeopardize job security and create divisions among employees.
- Adequate Recruitment: The unions emphasized the need for sufficient staffing in all cadres to ensure smooth banking operations and address the issue of overworked staff.
- Amendment to the Gratuity Act: A demand was made to increase the gratuity ceiling to ₹25 lakh, along with seeking tax exemptions on the same.
- Proper Treatment and Protection of Bank Staff: The unions called for measures to protect bank employees from assaults and abuses by unruly members of the public, ensuring a safe working environment.
Conciliation Meeting and Assurances
On March 23, 2025, a conciliation meeting was convened by the Chief Labour Commissioner, bringing together representatives from the UFBU, IBA, and the Finance Ministry. During this meeting, positive assurances were provided to address the unions’ demands:
- Five-Day Workweek: The IBA proposed further discussions on implementing a five-day workweek, acknowledging the importance of work-life balance for bank employees.
- Performance Reviews and PLI: The DFS agreed to review the recent directives concerning performance reviews and PLIs, considering the unions’ concerns about job security and employee welfare.
- Recruitment and Staffing: The IBA assured that discussions would be held to address recruitment needs, ensuring adequate staffing across all cadres to maintain efficient banking operations.
- Gratuity Act Amendment: The Finance Ministry agreed to consider the proposal to amend the Gratuity Act, potentially increasing the ceiling to ₹25 lakh and examining the possibility of tax exemptions.
- Protection of Bank Staff: Measures to ensure the safety and proper treatment of bank employees were discussed, with assurances of implementing protocols to protect staff from public misconduct.
Postponement of the Strike
In light of these assurances, the UFBU decided to postpone the planned strike. C H Venkatachalam, General Secretary of the All India Bank Employees Association (AIBEA), stated, “IBA has proposed further discussions on recruitment, PLI, and other key issues. The Chief Labour Commissioner has assured direct monitoring of the five-day banking implementation.”
Impact on Banking Operations
With the strike deferred, banks across India are functioning normally on March 24 and 25, 2025. Customers can access all banking services, including cash transactions, clearing houses, remittances, and loan processing, without any disruptions. This development has provided relief to both customers and the banking sector, ensuring continuity in financial operations.
Future Discussions and Monitoring
The next round of discussions is scheduled for April 22, 2025, where the IBA is expected to present a progress report on the addressed demands. The Chief Labour Commissioner will oversee the implementation of the five-day workweek and other agreed-upon measures to ensure that commitments are honored.
The proactive engagement between the UFBU, IBA, and the Finance Ministry has led to a constructive resolution, averting the planned strike and ensuring uninterrupted banking services. The forthcoming discussions aim to solidify the commitments made, addressing the concerns of bank employees and enhancing the overall efficiency of the banking sector. Customers are advised to stay informed about any future developments that may impact banking operations.
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