FinMin asks banks to minimise customer inconvenience ahead of 3-day strike | Finance News
Finance ministry officials met chief executive officers of public-sector banks (PSBs) on Monday and asked lenders to make adequate preparations ahead of the three-day strike from September 28 called by employee unions to minimise disruptions.
Banks are taking several steps to ensure normal operations, including filling automated teller machines (ATMs) with cash and deploying additional manpower at branches. The three-day strike coincides with the half-yearly closing of accounts, prompting banks to take further measures.
Several state-run lenders, including State Bank of India (SBI), Union Bank of India, Indian Bank, and Punjab National Bank, have issued customer advisories ahead of the three-day strike called by the United Forum of Bank Unions (UFBU) from September 28-30. They have asked customers to complete important banking transactions in advance and use digital channels during the strike period, while urging them to use ATMs for their cash needs.
The banks said they were making efforts to ensure continuity of essential services while cautioning customers that branch-level operations could be affected during the strike.
SBI has advised customers to complete important banking transactions ahead of the strike and use ATMs and automated deposit and withdrawal machines, customer service points, internet banking, mobile banking, Unified Payments Interface (UPI) and other digital channels for their banking requirements.
Union Bank has similarly informed customers that branch operations may be affected and said its mobile and internet banking services, ATMs, business correspondent points, UPI, and other digital channels would remain available for routine banking requirements.
The impact on branch operations is likely to vary depending on the location and availability of staff, according to a branch manager of a large PSB. He said branches headed by senior management could remain non-functional if employees participate in the strike, similar to the disruption seen during the September 11 strike.
“Nowadays, customers have access to internet banking, UPI, and ATMs, so they may not face much inconvenience,” the branch manager said.
Earlier this month, on September 11, a strike was called that had a limited impact on some branch operations, although loan processing and other activities requiring physical processing were affected.
Bankers said the impact could become more visible from September 29 as customers could withdraw larger amounts of cash, although ATM operations are increasingly managed through third-party cash-loading arrangements. “The main issue could be with loan processing,” said another bank manager.
UFBU, an umbrella body of bank employee and officer unions, had called the September 11 strike as part of its demands, including the implementation of a five-day banking week and resolution of pending issues relating to wages, pensions, and the performance-linked incentive scheme.
The September-end strike comes during the half-yearly closing period for banks, when branch-based transactions and other physical banking services typically see higher activity. The unions have also announced an indefinite strike from October 26 if their demands remain unresolved.
