Cash deposits, FD renewals, government treasury and money market operations were disrupted in many parts of the country. There were reports of ATMs running dry in several towns.
The United Forum of Bank Unions has been discussing the wage bill hike issue with the Indian Banks’ Association. In the last meeting earlier this month, IBA proposed that the wage bill be increased by 2% for the next five years.
The All India Bank Employees Association, a body of over 10 lakh bankers in government and private lenders had demanded an early revision of the wages which is due since November 1, 2017.
Bank strike highlights: There are about 85,000 branches of 21 public sector banks across the country having business share of about 70 per cent.
The strike is likely to affect the banking operations across the country. Cash withdrawals from ATMs and cheque clearance are likely to be hit, banking sources said, “as the strike has come during the month end, salaried class and small units are likely to bear the brunt.”
The bank strike, being spearheaded by the United Forum of Bank Unions (UFBU), is likely to impact operations at several bank branches and ATMs.
Bank unions announce strike: On May 5 in Mumbai, IBA made two unacceptable propositions including an offer of 2 per cent hike in the wage bill cost as on March 31, 2017, United Forum of Bank Unions (UFBU) said in a statement.
Rise in the gross NPAs of all the PSBs to Rs 6.83 lakh crore was also a major cause for concern and the banking system’s financial health was suffering due to provisioning.
The wage revision would benefit about 8.5 lakh employees and officers in 45 banks, including old generation private sector banks and a few foreign lenders.
The strike, if it goes through, would impact crucial fund transfers during the time of the presentation of the Union Budget 2015- 16 on February 28.
The banking unions on Friday threatened to go on a four day strike if their demands of a further raise in salaries was not met
Due to strike,cheques worth several crore of rupees remained uncleared.
Normal banking operations,including cash transactions,cheque clearances were affected.
Some private sector banks are also shut,causing harassment to the public.
Public sector bank employees will go on a two-day nation-wide strike.