New Delhi:
With nearly half a million bank employees joining a nationwide strike on Thursday banking operations were affected in many parts of the country.
The strike called by four bank employee unions - All India Bank Employees Association (AIBEA), Bank Employees Federation of India (BEFI), All India Bank Officers' Association (AIBOA) and National Union of Bank Employees (NUBE) - affected those banks where the unions have a strong presence
However, about 300,000 employees of the State Bank of India Group did not participate in the strike and the bank was not closed.
Cash transactions were affected, clearing operations were not held, and forex and money market transactions were also affected.
The strike follows the Lok Sabha clearing the Banking Laws (Amendment) Bill after the government dropped controversial provisions relating to allowing banks to trade in futures.
The unions claimed that about 700,000 employees of various public sector banks participated in the strike.
Rajya Sabha approved the Bill on Thursday, paving the way for corporate houses to enter the banking sector. Foreign investments also can now come into the sector.
The Bill will allow RBI to supersede boards of private sector banks and increase the cap on voting rights of private investors in public sector banks to 10 per cent from 1 per cent.
Referring to the strike, Finance Minister P. Chidambaram said he could only request the bank employees to refrain from such activities.
The strike severely hit banking services in the northeastern region, where most public sector banks were closed.
Over 10,000 bank employees of over 2,000 branches of nationalised banks in the seven northeastern states took part in the one-day strike, said Bank Employees Federation of India general secretary Nikhil Das.
"The proposed reforms in the banking sector are expected to be undertaken aiming at mergers, acquisitions and outsourcing of routine activities of Indian banks and allow foreign banks and investors in these activities and banking managements," he said.