Bank strike will impact financial predictability, business continuity, say trade bodies
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Trade bodies in Bengaluru argue that the industry needs predictability and continuity, especially at a time when cash flows and financial settlements are critical.
While the State Bank of India (SBI) on Thursday issued an advisory urging customers to complete all important transactions before the three-day nationwide bank strike from September 28, trade bodies in Bengaluru argued that industry needed predictability and continuity, especially at a time when cash flows and financial settlements are critical.
SBI’s customer advisory was issued in view of the proposed nationwide bank strike by the United Forum of Bank Unions (UFBU) from September 28 to 30. The UFBU, which claims to represent 90% of the banking workforce, is seeking a five-day banking week, among other demands.
The proposed strike, coming immediately after the weekend, could effectively result in a prolonged disruption of banking services during the critical month-end and half-year closing period, the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) said.
“This will particularly impact MSMEs and businesses that depend on timely payments, collections, salary disbursements, statutory payments and working-capital transactions,” said Uma Reddy, president of FKCCI. Small, medium and micro enterprises, as well as traders, require financial predictability and business continuity, especially when cash flows and financial settlements are critical, she said.
While FKCCI respects the concerns of banking employees, the trade body urged all stakeholders to continue dialogue and arrive at an amicable solution in the larger interest of businesses and the economy.
“We welcome the decision to keep public sector and regional rural banks operational on Sunday, September 27, but appeal for uninterrupted banking services throughout this crucial period,” she said.
Responding to a query, K. Ravi, president of the Bangalore Chamber of Industry and Commerce (BCIC), said that though it was termed a three-day bank strike, its practical impact could extend to five days. “Businesses may face interest and penalties for delayed payments, while exporters could face delays in bank guarantees
SMEs may struggle with limited access to cash, and suspended clearing operations could create backlogs in high-value settlements, especially around the September 30 half-yearly closing Mr. Ravi further said.
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