Mumbai: On Monday, the first day of the two-day nationwide banks’ strike, called by the United Forum of Bank Unions (UFBU) against the Centre’s move to privatize banks, led to the non-clearance of two crore cheques and financial instruments worth about Rs 16,500 crore, according to the claims made by a union.
“On average, about 2 crore cheques or instruments worth about Rs 16,500 crore are held up for clearance. Government treasury operations and all normal banking transactions were also affected,” C.H. Venkatachalam, General Secretary, All India Bank Employees Association (AIBEA), said in a statement.
About 10 lakh employees of public sector banks (PSBs) struck work in protest against the government’s decision to privatize banks.
Recently, the Centre had decided to privatize two public sector banks, apart from the IDBI Bank. Responding to the move, the UFBU, an umbrella organization of nine unions, had given the strike call.
“According to reports from various states, banking operations were paralyzed in all centres,” Venkatachalam said.
He said the strike would continue on Tuesday to “save” the banks from being taken over by private “vested interests”.
“The strike aims to save the savings of our people, and to ensure more loans to priority and weaker sections,” he added.
The banks are making operational profits but they are showing net loss due to the corporate defaulters.
He said that the operating profits of government banks in 2019-20 were Rs 1,74,336 crore, provision for doubtful debts was Rs 2,00,352 crore and the net loss stood at Rs 26,016 crore.
(VP)
