 "The new face of banking")
A nation-wide bank strike has hit the public transactions like cheque clearances and cash deposits, as nearly 10 lakh employees are said to have participated in it.
The strike has been called as a mark of protest against central government’s policies for the sector and the merger of five associate banks of State bank of India with the parent.. They were also protesting the privatisation of IDBI Bank.
"The strike has evoked a good response nationwide as around ten lakh have participated in it. Most of the nationalised banks are closed," C.H. Venkatachalam, General Secretary of the All India Bank Employees Association (AIBEA), told IANS.
Echoing this, K. Phamaraiselvan, General Secretary of Andhra Bank Employees Union (Tamil Nadu unit) said: "The banking operations have been paralysed nationwide."
However, the vital treasury operations including Rs 15,000-crore government bond auction were most likely to be unaffected, traders said.
"Treasury people have been allowed to enter the head office of the bank, so there is no problem for us in trading or bidding at the auctions," said a senior trader at a large state-run bank.
However, there could be some issues in some banks settling the previous day's trades due to thin staffing.
"Settlement will be a problem at back office," said a senior official with State Bank of India.
The RBI was also not too worried about the impact of the strike on treasury operations and settlements of banks.
"There shouldn't be any problem. Primary dealers are also there to underwrite if needed. But auctions should go through smoothly," the official said.
Earlier this month, major bank unions deferred a two-day strike call for July 12 and 13 following a restraint order by the Delhi High Court.
