The Hindu Business Line : Bank strike hits cheque clearing

BANKING operations all over the country were partially affected on Tuesday as employees struck work to protest against Government plans to merge public sector banks and allow 74 per cent FDI in banks.

According to the United Forum of Bank Unions, which called the strike, employees of all public sector and old private sector banks participated in the strike.

However, new private sector and foreign banks reported normal working. Some bank branches were open but with skeletal staff.

According to RBI officials, cheque clearing was seriously hit by the strike. The total value of cheques cleared in Mumbai circles on Tuesday amounted to less than 25 per cent of a normal day.

According to RBI figures, in Mumbai Zone I, 52 banks participated in the clearing operations, against the normal 115 banks. In Zone II, which includes only Fort area, 12 banks participated in the clearing operations. Mr S. Nagarajan, Deputy General Secretary of All India Bank Officers Association (AIBO), said the strike was a total success. He said, "Entire banking operations were brought to a complete halt. Only the 10 new generation private sector banks did not join the strike."

The AIBO leaders will meet within a week to take a decision on the further course of action, Mr Nagarajan said. The strike also affected the forex market, which did not see much action. However, the bond market was not affected, as PSU banks do not trade heavily in Government securities.

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