The Hindu Business Line : Customers to pay for bankers' `unpaid vacation'

Impact
ATMs may run out of cash after two days
UFBU leaders to meet the Prime Minister on March 19
IBA to hold discussions with the unions on March 20

Mumbai March 17 Bankers will be going on a three-day unpaid vacation from March 28 with 27 public sector banks, including the country's largest bank, State Bank of India, and many old private sector banks going on an all-India strike.

If the bank holidays on March 27 and 31 are taken, it could be a five-day vacation for bankers while their customers will be left to curse their luck.

According to Mr Vishwas Utagi, Joint Secretary, All-India Bank Employees Association, "Clearing operations will be impacted for around nine days from March 23 to April 1 due to the strike. The ATMs will be open but after one or two days cash will be exhausted."

According to the banks' unions, the main issues are job outsourcing, suspension of compassionate appointments and the choice of pension not being given to existing bank employees.

Banking and treasury operations will be severely affected during the period.

Tax collections

As the financial year 2006-07 also comes to an end, collection of taxes will also be impacted. Keeping the strike in mind, the Income-Tax department has asked the taxpayers to make their payments before the strike.

More than 10 lakh bank employees will participate in the shutdown.

According to Mr Umesh Naik, President, All-India State Bank of India Staff Federation, ATMs may run out of cash after two days. "Clearing operations will be particularly hit, as the volume of transactions is very high towards March-end. There are a number of government transactions during the month," he added.

"Leaders of the United Forum of Bank Unions will meet the Prime Minister on March 19 at New Delhi and meet the Indian Banks' Association on March 20," said Mr Utagi.

Only new private sector banks such as ICICI Bank, UTI Bank, HDFC Bank, Centurion Bank of Punjab, among others, will remain open.

"Public sector banks and old private sector banks like Karnataka Bank, Karur Vysya Bank, Dhanalakshmi Bank, Bank of Rajasthan, Lakshmi Vilas Bank, among others, will go on strike," Mr Utagi said.

The Indian Banks' Association is trying to avert the strike.

"We are going to have discussions with the unions on March 20. We are trying to prevent the strike as customers and the banks will be badly affected," said Mr H.N. Sinor, Chief Executive, Indian Banks' Association.

Related Stories:
Call for 3-day bank strike

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Customers to pay for bankers' `unpaid vacation'