The factor that turned a potentially debilitating nationwide strike into a damp squib

Mumbai | New Delhi: North Block’s persistent efforts at weaning consumers away from cash transactions and urban India’s increasing reliance on private-owned lenders have helped weather the impact of a two-day public-sector bank strike that began on Wednesday.For many customers who had adopted digital modes of transactions in the aftermath of the November 2016 demonetisation, the strike by a million bank staff meant little inconvenience. In urban areas, where consumer banking now has a distinctively private flavour, the disruption was limited, as employees at state-run banks were at the vanguard of the industrial action.The strike did hit small and marginal traders, who still prefer to deal in cash or chequing instruments that need to be deposited, withdrawn or cleared through bank branches.According to official estimates about 25% of the total branches were functioning and 80%of ATMs were dispensing cash. Bank treasury operations reported slightly lower trading activity, according to the treasury head at a large bond house.Funding activity, however, was quite normal. “The strike was successful,” said All India Bank Employees Association (AIBEA) general secretary CH Venkatachalam. “Further strikes will be necessary only if there is a serious deadlock. Otherwise, we would like to resolve the matter across the table.”Venkatachalam said a formal communication for talks is awaited, although “the management association has expressed its intention to discuss the matters on June 12 in Mumbai.” About 85,000 bank branches of two dozen public sector banks across India were largely shut on Wednesday. “There has been no revised offer from the government and now we will have to think of stronger measures. We don’t want customers to suffer but the government has left us with no option,” said Ashwani Rana, vice-president, National Organisation of Bank Workers.Although unions claimed that there was shortage of cash in currency-note dispensers, not much impact was visible in big cities.Wage revision is the key demand for those participating in industrial action. Repeated discussions with Indian Banks’ Association (IBA) have failed to break the impasse. IBA had offered a 2% raise in wages, an offer that met with an instant disapproval from bank unions.“Bank branches were all shut, and only senior officials (assistant general manager or above grades) were present,” said the circle head of a large public sector bank in Hyderabad. The person is in charge of about 85 branches. In Mumbai’s trading hub of Kalbadevi market, daily cash or cheque transactions were interrupted. But some traders chose smaller co-operative banks or private bank facilities to make payments.“I used my PMC Co-operative Bank account to make payments today,” said Dinesh Dubey, a Mumbai-based contractor. Government banks are said to have informed their customers about the likely disruptions. In the real estate market, the strike was a non-event because of the digital mode of payments.

from The Economic Times https://ift.tt/2smYeht