Bank Strike: How Much Business Do Banks Handle Daily, What Could Be The Cost Of A Three-Day Shutdown?

Mumbai: Around eight lakh bank employees across the country, under the banner of the United Forum of Bank Unions (UFBU), have announced a three-day nationwide strike on September 28, 29 and 30 over demands including five-day banking and pension-related issues.

With September 26 being the fourth Saturday and September 27 a Sunday, concerns had emerged that customers could face five consecutive days of disruption.

To reduce inconvenience, public sector banks have been asked to remain open on September 27 so customers can complete essential banking work.

How Big Is Daily Banking Business?

Banks are central to India's financial system, processing cheque clearances, RTGS and NEFT transactions, government treasury operations, business loans, cash transactions and foreign-exchange deals.

Digital payments alone underline the enormous scale of activity. UPI transactions account for roughly Rs 88,000 crore to Rs 1 lakh crore of transaction value every day.

When RTGS transfers, cheque clearing, corporate payments, cash deposits, government transactions, import-export payments and foreign-exchange deals are included, banks process financial transactions worth several lakh crore rupees on an average working day.

Branch counters also handle cash deposits and withdrawals, credit-related documentation and services for small businesses.

What Could A Three-Day Strike Disrupt?

While internet banking, mobile applications, ATMs and other digital services are expected to remain operational, closure of physical branches could disrupt several business activities.

Cheque clearing could be among the areas facing delays. An estimated Rs 15,000 crore to Rs 20,000 crore worth of cheques could potentially get held up during the three-day strike, affecting working-capital cycles, particularly for smaller businesses.

Which Services Could Be Hit?

Cash deposits and withdrawals, cheque clearing, government treasury operations, foreign-exchange transactions and money-market activities could face the greatest disruption as many of these services require branch-level staff.

Private-sector lenders such as HDFC Bank, ICICI Bank and Axis Bank are not part of the proposed strike, and their operations are expected to continue normally.

Customers can also rely on ATMs, UPI, net banking and mobile banking for many routine transactions during the strike.