Public Sector and Regional Rural Banks to Remain Open on Sunday...
In a proactive measure to prevent prolonged disruption of essential financial services, the Union Ministry of Finance announced that all Public Sector...
By GT24x7 Reporter··GlobalToday24x7
The Union Ministry of Finance, in coordination with the Reserve Bank of India (RBI), has directed all Public Sector Banks (PSBs) and Regional Rural Banks (RRBs) across the country to function normally on Sunday. The administrative order was issued to safeguard public convenience and cushion retail and corporate customers against an extended five-day banking interruption. The disruption stems from a combination of regular weekend closures and a proposed three-day nationwide bank strike called by the United Forum of Bank Unions (UFBU) from September 28 to September 30.
According to official directives issued by the Department of Financial Services (DFS), the Reserve Bank of India has granted special regulatory clearance for all physical bank branches, administrative offices, ATM-linked network units, and regional currency chests to remain fully functional throughout the day. The preemptive decision aims to enable citizens, small businesses, and commercial enterprises to complete essential financial transactions, cash deposits, and clearing operations before the planned industrial action commences on Monday.
Regulatory Adjustments and Special Financial Measures
To mitigate public inconvenience during the potential industrial shutdown, major public sector lenders, including the State Bank of India (SBI) and Bank of India, have initiated customer outreach campaigns. Financial institutions have issued public advisories encouraging consumers to utilize digital banking platforms, including Unified Payments Interface (UPI), Internet Banking, Mobile Banking, and Business Correspondent (BC) networks for routine transactions. Additionally, several public sector lenders have announced temporary waivers on transaction charges for ATM usage exceeding standard monthly limits during the strike period.
The timing of the proposed strike has raised heightened concern within the financial sector because September 30 coincides with the half-yearly financial closing for the banking industry. This critical calendar date involves extensive inter-bank reconciliations, balance sheet provisioning, and financial audit preparations that could face operational delays if branch network operations are disrupted.
Union Demands, Government Interventions, and Industry Impact
The United Forum of Bank Unions (UFBU), an umbrella body representing nine major bank employee and officer unions—claiming to represent approximately 90 percent of the nation's banking workforce—has maintained its stance following inconclusive conciliation meetings with the Indian Banks' Association (IBA) and Ministry officials. The unions' primary demand centres on the formal implementation of a five-day workweek for bank staff, alongside requests for pension updates, uniform Dearness Allowance (DA) formulas for retirees, and options for employees under the National Pension System (NPS) to transition to the Old Pension Scheme (OPS).
While the central government and bank management teams continue appealing to union representatives to defer the industrial action, the operational directive ensuring Sunday functionality provides immediate operational relief to account holders nationwide. Private sector commercial lenders, such as HDFC Bank, ICICI Bank, and Axis Bank, are expected to maintain uninterrupted operations throughout the week as their employees are not affiliated with the UFBU strike call.