Finance ministry officials met chief executives of public sector banks on Monday and asked lenders to make adequate preparations ahead of the three-day strike from September 28 called by employee unions so that disruptions can be minimised.
Banks are taking several steps to ensure normal operations, such as filling automated teller machines with cash and deploying additional manpower in branches, among others. The three-day strike coincides with the half-yearly closing of accounts, due to which banks are taking additional steps.
Several state-run lenders, including State Bank of India (SBI), Union Bank of India, Indian Bank and Punjab National Bank (PNB), have issued customer advisories ahead of the three-day strike called by the United Forum of Bank Unions (UFBU) from September 28 to September 30, asking customers to complete important banking transactions in advance and use digital channels during the strike period while urging them to use automated teller machines 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 (ADWMs), customer service points (CSPs), internet banking, mobile banking, UPI and other digital channels for their banking requirements.
Union Bank has similarly informed customers that branch operations may be impacted and said its mobile and internet banking services, ATMs and 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 public sector bank. 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, internet banking, UPI, ATM, these facilities are there for the customer. Customers may not face much of a problem,” the branch manager said.
Earlier this month, on September 11, a strike was called, which 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.
“Only thing is the loan processing issue may arise,” said another bank manager.
The UFBU, an umbrella body of bank employee and officer unions, had called the September 11 strike as part of its demands, including implementation of a five-day banking week and resolution of pending issues relating to wages, pension 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.
