Hyderabad, August 07: Banking activities were crippled on Thursday when about 50,000 bank employees went on strike demanding that their long pending demands for salary hikes and other benefits be resolved.
The strike hit cash settlements, cheque-clearing activities, treasury and money market operations along with government transactions.
Some bank managements made preparations to ensure availability of funds but this did not meet the requirements.
All the branches of about 26 public sector banks and another 10 old generation private sector banks remained closed for the day.
However, a few private sector banks which did not join the stir provided some relief to customers. Middlemen had a field day by selling pay orders and demand drafts of Rs 50 to Rs 500 denomination at higher rates. “I bought five pay orders of Rs 100 denomination by paying Rs 120 each, which resulted in additional burden of Rs 100,” said Fazil, who had to pay the stipulated amount in connection with some transaction.
The middlemen had stocked up on a large number demand drafts and pay orders to make some quick bucks during the strike period.
Sources said that most of the banks made prior preparations like pumping cash into ATMs to ensure that common people did not get affected by the two-day strike.
However, people were seen hurrying to withdraw cash from ATMs from Thursday evening itself, as they anticipated withdrawal problems from Friday.
With withdrawal of huge amounts by panicky customers, banks were forced to display ‘out of order’ boards in front of the ATMs at several places as they ran out of cash.
Sources said that the total participation of the clerical staff affected the entire range of operations in banks.
The banks that outsourced ATM-filling to external agencies were not affected by the strike but ATMs of banks that retain this task in-house ran dry. The situation is likely to worsen as the strike will continue for the second day on Friday. Saturday is a ‘halfday’ followed by the Sunday holiday.
The United Forum of Bank Unions (UFBU), an umbrella of nine trade unions in the banking industry, called for the two-day strike after their talks with the Indian Banks’ Association (IBA) over a new wage settlement failed. The new wage settlement would determine wages of bank employees in the industry for the next five years.
UFBU-AP convener K Ramakoteswara Rao said that the UFBU is meeting on August 11 at Chennai to chalk out a schedule for an indefinite strike if the bank managements remain unwilling to enter into a fair agreement.
“We have no other choice as the bank managements backed out despite their promises issued a month ago,” he said.
Cash Call
People hurry to withdraw cash from ATMs on Thursday as they anticipate withdrawal problems from Friday.
Middlemen have a field day, selling pay orders and demand drafts of Rs 50 to Rs 500 at higher rates.
–Agencies–