Month: March 2021

List Of Private & Public Sector Banks Providing Higher Returns On 2-3 Year FDs

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Benefits of investing in fixed deposits

Investing in a fixed deposit has always been a popular option among risk-averse investors because of the assured returns and no market-related risks. Fixed deposits are therefore not market-related, meaning market uncertainty has no impact on them, making them an excellent option for those who are unfamiliar with the stock exchange. A fixed deposit is a financial instrument with a fixed rate of interest for a certain time frame. The duration of a deposit can be as short as seven days or as long as ten years. Investors are paid a higher rate of interest, and as a result, their yields are higher if compared to savings accounts of banks or post office. Some main advantages of investing in fixed deposits are as follows:

Returns: Fixed deposits are among the best investment options available because of the assured returns unlike stock market or mutual funds. FD borrowers are given a fixed rate of interest that stays constant over the term of the FD. Investors know what they should get from their FD at the time of maturity.

Liquidity: People are less afraid to invest in fixed deposit accounts because they do not include any substantial risk. Furthermore, since it is a liquid alternative, depositors can rest assured that if an emergency occurs, all they have to do is prematurely break the FD and resolve the issue.

Deposit Insurance Cover: Bank fixed deposits (both retail and small finance banks) are covered by Rs. 5 lakh insurance policy. The Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of the Reserve Bank of India (RBI), provides this security.

Tax deduction: Almost all the banks provide tax-saving FD schemes to their customers, which help them to reduce their taxable income. Almost all the banks provide tax-saving FD schemes to their customers, which help them to reduce their taxable income and, as a result, the rate of income they must pay. Up to Rs. 1.5 lakh of the amount can be invested in a tax-saving fixed deposit, which can be used to claim deductions under Section 80C of the Income Tax Act, 1961. No premature withdrawal is allowed on tax-saving FDs as they come with a lock-in period of 5 years.

An additional benefit for senior citizens: Fixed deposit interest rates are higher for senior citizens. Senior citizens’ preferential rates generally range from 0.25 per cent to 0.65 per cent higher than normal FD interest rates.

Interest payout option- A fixed deposit’s interest is paid in two different ways: cumulative and non-cumulative. The cumulative option applies to the accumulation of interest on which additional interest is received and paid at the time of maturity. The non-cumulative alternative is directly opposed to the cumulative option. Interest is paid at regular intervals, which can be monthly, quarterly, half-yearly, or yearly, depending on the depositor’s preference. Non-cumulative options are good for those who want a steady income, but cumulative options are best for those who want to maximise their returns by having compounding task for them.

Loan against FD: Rather than take out an unsecured loan at a high rate of interest, fixed deposit holders can fund their emergency by borrowing against their own fixed deposit. Over the applicable fixed deposit rate, a small amount of interest of 0.5 per cent to 2% is levied.

Who should invest in fixed deposits?

Who should invest in fixed deposits?

Astonishing occurrences in recent months have had a lasting effect on the market. Companies in a variety of industries have struggled to remain competitive through the difficult periods of global downturns, swaying stock indices, and evolving customer trends. This has also resulted in a switch from market-linked investments towards low-risk investments for most of the investors. As a result, the ever-popular fixed deposit (or FD) has resurfaced. People of varying ages and risk levels who want the promise of assured returns are currently considering investing in fixed deposits even if the returns are low. Unlike several market-linked investments, the returns on your FD are guaranteed and not subject to market volatility. FDs are therefore a must-have in your investment portfolio during the current turbulent times. Continue reading to learn that now is a good time to invest in a fixed deposit. Even though FD interest rates are currently around 4-6 per cent, investing in small finance bank FDs will yield attractive returns of over 7%. The current example illustrates how a fixed deposit will assist in resolving the risk-return dilemma. Despite the enormous market volatility and risks, a fixed-income investment is a decent way to keep the investments secure while also generating wealth. Furthermore, investing in a fixed deposit is a flexible choice since you can select your tenures, interest payout frequency, and deposit amount as well. You can seek to improve your savings in a flexible manner with simple online FD facilities and the ability to ladder your holdings or take a loan against FD to finance your crises.

2 to 3 year FD rates

2 to 3 year FD rates

Here’re the different public and private sector banks that are currently providing higher interest rates on 2 to 3 year FDs for the amount below Rs 2 Cr. (Source: Bank websites).

Public Sector Banks ROI in %
Union Bank 5.5
Canara Bank 5.5
Bank of India 5.3
SBI 5.3
Indian Bank 5.25
Punjab & Sind Bank 5.25
Indian Overseas Bank 5.2
Punjab National Bank 5.2
Bank of Baroda 5.1
Central Bank of India 5.1
IDBI Bank 5.1
UCO Bank 5
Private Sector Banks ROI in %
DCB Bank 6.75
Yes Bank 6.75
RBL Bank 6.6
IndusInd Bank 6.5
TNSC Bank 5.85
Bandhan Bank 5.75
City Union Bank 5.75
Tamilnad Mercantile Bank 5.65
Karur Vysya Bank 5.65
Karnataka Bank 5.55
South Indian Bank 5.5
Axis Bank 5.4
Dhanlaxmi Bank 5.4
Federal Bank 5.35
Jammu & Kashmir Bank 5.2
HDFC Bank 5.15
ICICI Bank 5.15
Kotak Bank 5.1



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Services at PSU banks hit as employees go on nationwide strike

Banking & Finance

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Banking operations, including cheque clearances, across the country got affected on Monday as bankers under the aegis of the United Forum of Bank Unions (UFBU) have gone on a nationwide strike to protest against the proposed privatisation of two State-owned lenders.

UFBU, an umbrella body of nine unions, has given the strike call for March 15 and 16, and claimed that about 10 lakh bank bank employees and officers will participate in the strike.

However, branches of private sector lenders such as ICICI Bank, HDFC Bank and Axis Bank are open as they are not part of the strike.

In the Union Budget presented last month, Finance Minister Nirmala Sitharaman had announced privatisation of two public sector banks (PSBs) as part of the government’s disinvestment plan.

The government has already privatised IDBI Bank by selling its majority stake in the lender to LIC, and has merged 14 public sector banks in the last four years.

According to All India Bank Employees Association (AIBEA) general secretary CH Venkatachalam, services at branch level, cheque clearance and government transactions have been affected.

Besides, money markets and stock markets are also going to face problems as payments would be impacted, he said.

Members of UFBU include All India Bank Employees Association (AIBEA), All India Bank Officers’ Confederation (AIBOC), National Confederation of Bank Employees (NCBE), All India Bank Officers’ Association (AIBOA) and Bank Employees Confederation of India (BEFI).

Others are the Indian National Bank Employees Federation (INBEF), Indian National Bank Officers Congress (INBOC), National Organisation of Bank Workers (NOBW) and National Organisation of Bank Officers (NOBO).

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RBI dashes YES Bank’s plan to transfer Rs 50,000 cr NPAs to ARC, BFSI News, ET BFSI

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YES Bank‘s plan to get rid of its huge NPAs has come unstuck.

Its proposal to set up an asset reconstruction company (ARC) has been rejected by the Reserve Bank of India (RBI), according to reports.

The RBI cited a conflict of interest as many of the stressed loans of YES Bank are declared fraud cases that cannot be transferred to an ARC.

Its NPAs include Essel, Videocon, HDIL, DHFL which have been declared as cases of fraud, and under the rules such cases cannot be transferred to an ARC. An ARC would have taken huge NPAs off its books and helped in faster debt resolution.

Foreign interest in ARC

YES Bank had earlier said it was seeing interest from foreign firms keen to invest in the asset reconstruction company (ARC) it plans to launch to hive off soured loans worth Rs 50,000 crore.

“There has been a lot of interest from foreign investors for our ARC business. We are likely to put in initial capital of Rs 1,000 crore while the foreign investor will put in nearly Rs 2,500 crore,” Prashant Kumar, CEO of Yes Bank, had said.

YES Bank had applied to the Reserve Bank of India (RBI) for regulatory approvals in September to launch the ARC and Kumar said they believe they operationalize it within six months of securing clearances.

The lender, which was rescued last year after its financial health deteriorated significantly, had been placed under a moratorium by the central bank. The State Bank of India and several private lenders stepped in to infuse money into the lender and bail it out to address systemic risk concerns.

Precarious health

The bank’s gross NPAs reduced to 15.4% in the December quarter from 16.9% in September, NPAs could be close to 20%, taking into account the Rs 8,000 crore book the bank has restructured that could slip into NPAs. And that excludes another Rs 10,000 crore of loans that are stressed, but not classified yet as NPAs.

The total stressed loans and loans overdue for more than 30 days stand at Rs 28,000 crore, or about 16% of the loan book — in addition to the gross NPA of 15%. While all overdue loans of 30 dpd (days past due) and 60-90 dpd do not become NPLs, analysts remain concerned on the size of the loan book that is overdue.

The size of the net overdue loan book is Rs 25,500 crore (net of Covid provisions) and net worth of Yes Bank as of December 2020 is Rs 37,000 crore — roughly 70% of net worth.

The bank, however, is confident that further provisions can be made in the next few months. It has made a total of Rs 2,683 crore in provisions including a 15% provision on the SC mandated standstill accounts and a 10% provision on restructured loans.

Future plans

YES Bank intends to stay away from large corporate businesses as it looks to rebuild its loan book in the mid- and small-corporate segment.

The bank, like other lenders, saw increased stress in its retail segment, which had touched nearly 3% in this financial year compared with 1% during pre-coronavirus times, but feels things were improving.



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Bank lending 50 per cent higher in October-February, BFSI News, ET BFSI

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Bank credit growth is accelerating with unlock trade gathering momentum as aggregate loans disbursed in the five months to February this year rose nearly 50 percent.

An analysis of RBI‘s credit data shows that banks lent Rs 5 lakh crore between end September and February of the current fiscal compared to Rs 3.3 lakh crore in the same period of FY’20.As of February 26, overall credit growth was higher at 6.6 per cent than 6.1 per cent a year ago. But loan growth in Septmber’20 was lower at 5.1 per cent compared to 8.8 per cent in the same period a year ago, indicating that the unlock phase has spurred credit demand.

Much of the growth in the post pandemic period has been due to various government initiative undertaken as a part of the stimulus package to help the MSME sector to revive the economy post COVID-19. ” ECLGS disbursements at Rs 1.6 lakh crore in the first nine months of this fiscal have lent support” Ratings firm Crisil said in a report.

Besides, the better monsoons this year also lifted prospects for agriculture even as the pandemic derailed the industry and services sector. This also reflected in growth of agri-loans have also risen at a higher pace this year at 9.9 per cent in January, compared to 6.5 per cent with fresh sanctions in absolute terms crossing the Rs one lakh crore mark so far this fiscal.

But the trends till January also show that since the pandemic, some new heads like loan against gold jewellery-132 per cent, bank lending to non-HFC NBFCs-150 per cent, social infrastructure-98 per cent and aviation-120 per cent has gone up by over 100 per cent-

As for loan against gold jewellery this can largely be attributed to focus of banks towards secured lending products post LTV relaxation, said a report by ICICI Securities. “NBFCs, after having consolidated for almost 2 years now, significantly deleveraging the balance sheet by running down high risk profile assets, are now more confident to pursue growth opportunities in a risk-calibrated manner” it said.

Besides lending opportunities arising out of general economic revival and pick up in consumption demand, banks will also have an edge over NBFCs because of their access to low cost funds. “Competition is intensifying. With low-cost funding access, banks will be aggressive in the retail segments, especially housing and new vehicle finance” Crisil said.



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Bad bank can be only a warehouse of bad assets, says Siby Antony, BFSI News, ET BFSI

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Antony has been working in the ARC sector for the last two decades. He was heading Edelweiss ARC and now is the Chairman, ARC Association of India. In an interview with ETBFSI he explained different aspects of the bad bank…

He believes “Bad bank will be a warehouse of bad assets. If the objective of a bad bank will be to aggregate the debt and hand it over to ARC and AIF it will work. Because debt aggregating is still a problem in ARC the reasons being different banks have different provision coverage and many more such issues.” he said.

Antony also narrated the crux of the issues pertaining to asset reconstruction companies (ARCs). Such as why are banks unable to find resolution despite there being 28 ARCs? What are the major challenges that ARCs face? What has the Association of ARCs asked the RBI?

Antony also sees a surge in cases in the National Company Law Tribunals after March once the Insolvency and Bankruptcy Code suspension is revoked.

Also read: Raghuram Rajan’s formula has led to over 50% recovery for ARCs

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Reserve Bank of India – Press Releases

Press Releases

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(Amount in ₹ crore, Rate in Per cent)
  Volume
(One Leg)		 Weighted
Average Rate 		Range
A. Overnight Segment (I+II+III+IV) 4,04,680.43 3.19 0.01-5.30
     I. Call Money 9,279.94 3.22 1.90-3.50
     II. Triparty Repo 2,92,798.50 3.25 3.01-3.30
     III. Market Repo 1,00,831.99 3.02 0.01-3.40
     IV. Repo in Corporate Bond 1,770.00 3.47 3.40-5.30
B. Term Segment      
     I. Notice Money** 443.50 3.25 2.60-3.40
     II. Term Money@@ 356.30 – 3.25-3.67
     III. Triparty Repo 0.00 – –
     IV. Market Repo 0.00 – –
     V. Repo in Corporate Bond 3,245.00 3.60 3.50-5.35
  Auction Date Tenor (Days) Maturity Date Amount Current Rate /
Cut off Rate
C. Liquidity Adjustment Facility (LAF) & Marginal Standing Facility (MSF)
I. Today’s Operations
1. Fixed Rate          
     (i) Repo          
     (ii) Reverse Repo Fri, 12/03/2021 3 Mon, 15/03/2021 4,76,649.00 3.35
2. Variable Rate&          
  (I) Main Operation          
     (a) Reverse Repo Fri, 12/03/2021 14 Fri, 26/03/2021 2,00,007.00 3.51
  (II) Fine Tuning Operations          
     (a) Repo          
     (b) Reverse Repo – – – – –
3. MSF Fri, 12/03/2021 3 Mon, 15/03/2021 23.00 4.25
4. Long-Term Repo Operations –   –   –
5. Targeted Long Term Repo Operations – – – – –
6. Targeted Long Term Repo Operations 2.0 – – – – –
7. Net liquidity injected from today’s operations
[injection (+)/absorption (-)]*		      

-6,76,633.00

  
II. Outstanding Operations
1. Fixed Rate          
     (i) Repo          
     (ii) Reverse Repo          
2. Variable Rate&          
  (I) Main Operation          
     (a) Reverse Repo          
  (II) Fine Tuning Operations          
     (a) Repo          
     (b) Reverse Repo          
3. MSF          
4. Long-Term Repo Operations# Mon, 17/02/2020 1095 Thu, 16/02/2023 499.00 5.15
  Mon, 02/03/2020 1094 Wed, 01/03/2023 253.00 5.15
  Mon, 09/03/2020 1093 Tue, 07/03/2023 484.00 5.15
  Wed, 18/03/2020 1094 Fri, 17/03/2023 294.00 5.15
5. Targeted Long Term Repo Operations^ Fri, 27/03/2020 1092 Fri, 24/03/2023 12,236.00 4.40
  Fri, 03/04/2020 1095 Mon, 03/04/2023 16,925.00 4.40
  Thu, 09/04/2020 1093 Fri, 07/04/2023 18,042.00 4.40
  Fri, 17/04/2020 1091 Thu, 13/04/2023 20,399.00 4.40
6. Targeted Long Term Repo Operations 2.0^ Thu, 23/04/2020 1093 Fri, 21/04/2023 7,950.00 4.40
D. Standing Liquidity Facility (SLF) Availed from RBI$       32,617.06  
E. Net liquidity injected from outstanding operations [injection (+)/absorption (-)]*     1,09,699.06  
F. Net liquidity injected (outstanding including today’s operations) [injection (+)/absorption (-)]*     -5,66,933.94  
G. Cash Reserves Position of Scheduled Commercial Banks
     (i) Cash balances with RBI as on 12/03/2021 4,61,182.20  
     (ii) Average daily cash reserve requirement for the fortnight ending 12/03/2021 4,49,720.00  
H. Government of India Surplus Cash Balance Reckoned for Auction as on¥ 12/03/2021 0.00  
I. Net durable liquidity [surplus (+)/deficit (-)] as on 26/02/2021 8,64,316.00  
@ Based on Reserve Bank of India (RBI) / Clearing Corporation of India Limited (CCIL).
– Not Applicable / No Transaction.
** Relates to uncollateralized transactions of 2 to 14 days tenor.
@@ Relates to uncollateralized transactions of 15 days to one year tenor.
$ Includes refinance facilities extended by RBI.
& As per the Press Release No. 2019-2020/1900 dated February 06, 2020.
* Net liquidity is calculated as Repo+MSF+SLF-Reverse Repo.
# As per the Press Release No. 2020-2021/287 dated September 04, 2020.
^ As per the Press Release No. 2020-2021/605 dated November 06, 2020.
¥ As per the Press Release No. 2014-2015/1971 dated March 19, 2015.
Ajit Prasad
Director   
Press Release : 2020-2021/1241

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India to propose cryptocurrency ban: senior official

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India will propose a law banning cryptocurrencies, fining anyone trading in the country or even holding such digital assets, a senior government official told Reuters, in a potential blow to millions of investors piling into the red-hot asset class.

The Bill, one of the world’s strictest policies against cryptocurrencies, would criminalise possession, issuance, mining, trading and transferring crypto-assets, said the official, who has direct knowledge of the plan.

The measure is in line with a January government agenda that called for banning private virtual currencies such as bitcoin while building a framework for an official digital currency. But recent government comments had raised investors’ hopes that the authorities might go easier on the booming market.

Bitcoin jumps to all-time high as cryptocurrency fever continues

Instead, the Bill would give holders of cryptocurrencies up to six months to liquidate, after which penalties will be levied, said the official, who asked not to be named as the contents of the Bill are not public.

Officials are confident of getting the Bill enacted into law as Prime Minister Narendra Modi’s government holds a comfortable majority in Parliament.

If the ban becomes law, India would be the first major economy to make holding cryptocurrency illegal. Even China,which has banned mining and trading, does not penalise possession.

The Finance Ministry did not immediately respond to an email seeking comment.

‘Greed over panic’

Bitcoin, the world’s biggest cryptocurrency, hit a record high $60,000 on Saturday, nearly doubling in value this year as its acceptance for payments has increased with support from such high-profile backers as Tesla Inc CEO Elon Musk.

Cryptocurrency surge may continue, but regulatory uncertainties create bottlenecks

In India, despite government threats of a ban, transaction volumes are swelling and 8 million investors now hold 100 billion rupees ($1.4 billion) in crypto-investments, according to industry estimates. No official data is available.

“The money is multiplying rapidly every month and you don’t want to be sitting on the sidelines,” said Sumnesh Salodkar, a crypto-investor. “Even though people are panicking due to the potential ban, greed is driving these choices.”

User registrations and money inflows at local crypto-exchange Bitbns are up 30-fold from a year ago, said Gaurav Dahake, its chief executive. Unocoin, one of India’s oldest exchanges, added 20,000 users in January and February, despite worries of a ban.

ZebPay “did as much volume per day in February 2021 as we did in all of February 2020,” said Vikram Rangala, the exchange’s chief marketing officer.

Promoting blockchain

Top Indian officials have called cryptocurrency a “Ponzi scheme”, but Finance Minister Nirmala Sitharaman this month eased some investor concerns.

“I can only give you this clue that we are not closing our minds, we are looking at ways in which experiments can happen in the digital world and cryptocurrency,” she told CNBC-TV18. “There will be a very calibrated position taken.”

The senior official told Reuters, however, that the plan is to ban private crypto-assets while promoting blockchain — a secure database technology that is the backbone for virtual currencies but also a system that experts say could revolutionise international transactions.

“We don’t have a problem with technology. There’s no harm in harnessing the technology,” said the official, adding the government’s moves would be “calibrated” in the extent of the penalties on those who did not liquidate crypto-assets within the law’s grace period.

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Dollar firm amid US yield spike; bitcoin back below $60,000 following surge to record high, BFSI News, ET BFSI

Personal Finance

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TOKYO: The US dollar held firm on Monday after bouncing off a one-week low last week, supported by a spike in benchmark Treasury yields to more-than-one-year highs as inflation fears continued to smoulder.

Bitcoin retreated to below $60,000 amid a Reuters report that India will push ahead on a proposal to ban cryptocurrencies. It had surged to a record $61,781.83 over the weekend.

The greenback traded near its highest since June against the Japanese yen, which tends to weaken when Treasury yields rise.

Market participants have grown wary in recent weeks that massive fiscal stimulus and pent-up consumer demand could lead to a jump in inflation as expanding vaccination campaigns bring an end to lockdowns.

U.S. producer prices had their largest annual gain in nearly 2-1/2 years, data showed on Friday, while the country’s economy is set to get a massive shot in the arm from President Joe Biden’s $1.9 trillion stimulus package.

The outlook for the already brisk pace of U.S. vaccinations has also been boosted by Biden’s order for every state to make all adults eligible for vaccination by May 1.

The dollar index, which tracks the U.S. currency against six major peers, held around 91.645 early in Monday’s Asia session after climbing from near a one-week low of 91.364 at the end of last week.

Benchmark 10-year Treasury yields were at 1.6282% on Monday, close to Friday’s top of 1.6420%.

The dollar was largely flat at 109.04 yen on Monday, near the nine-month top of 109.235 reached last week.

The greenback has also been supported by a paring of bets for its decline, with speculators cutting net short positions to the lowest since mid-November in the week ended March 9, according to calculations by Reuters and U.S. Commodity Futures Trading Commission data released on Friday.

The dollar index has gained 1.8% this year, tracking the rise in benchmark yields from below 1%. In 2020, the gauge fell nearly 7%.

Many analysts expect the dollar to resume that downtrend in due course.

“Higher bond yields alone are unlikely to sustain the upswing in USD,” Commonwealth Bank of Australia analysts wrote in a research note, adding dollar declines were coming “soon”.

“The move higher in bond yields largely reflects the better economic outlook, which is ultimately a weight on the USD.”

The euro was mostly unchanged at $1.19535, consolidating just below $1.20 after sliding to a three-month trough of $1.18355 last week.

The Australian dollar – viewed widely as a liquid proxy for risk appetite – rose slightly to $0.7769, paring some of Friday’s 0.4% loss.

The Canadian dollar was largely flat, after earlier strengthening to C$1.2461 for the first time in three years. On Friday, a bigger-than-expected domestic jobs gain supported the view that the Bank of Canada would reduce quantitative easing purchases next month.

Bitcoin changed hands at around $59,940 after Reuters cited a senior government official as saying India will propose a law banning cryptocurrencies and fining anyone trading in the country or even holding such digital assets.

It would be one of the world’s strictest policies against the red-hot digital assets, and comes just as bitcoin and its rivals have been gaining credibility amid a wave of endorsements from big investors such as BlackRock Inc and corporate leaders including Tesla Inc’s Elon Musk and Twitter Inc‘s Jack Dorsey.

Bitcoin has more than doubled in value this year, after more than quadrupling in 2020.



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First Digital goes live as Israel’s first new bank since 1978, BFSI News, ET BFSI

Banking & Finance

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JERUSALEM – First Digital Bank, the first new bank in Israel since 1978, started operations on Sunday on a trial basis, and said it planned to open to the public later in 2021.

The bank, which Israel’s banking regulator approved last year, has 140 staff and has begun opening accounts and providing all banking services for a closed group of customers.

First Digital Bank was founded by Amnon Shashua, co-founder of Intel‘s autonomous car business Mobileye. Shashua has invested $60 million into the venture and the bank said it would raise additional funds to expand its operations.

Shashua said the bank will use artificial intelligence and other innovative technologies to meet customer needs.

The bank will have no branches and will focus on retail services, including extending credit to households and accepting deposits. Opening accounts will be done online.

In the third quarter, the bank will offer its services to 1,000 additional customers before opening to the general public towards the end of 2021.

Israel has five main banking groups, led by Hapoalim and Leumi, which together account for more than half of the market.

“We will offer a new model,” said Gal Bar Dea, CEO of the First Digital Bank.



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Banking services to be hit as over 10 lakh employees to go on strike on March 15, 16, BFSI News, ET BFSI

Banking & Finance

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The United Forum of Bank Union (UFBU), an umbrella body of nine bank unions, has called for a two-day nationwide strike on March 15 and 16 against the privatisation of Public Sector Banks and retrograde banking reforms.

Over 10 lakh bank employees and officers will participate in the strike.

All nine banks unions – All India Bank Officers’ Confederation (AIBOC), All India Bank Employees Association (AIBEA), National Confederation of Bank Employees (NCBE), All India Bank Officers’ Confederation (AIBOC), Bank Employees Federation of India (BEFI), Indian National Bank Employees Federation (INBEF), Indian National Bank Officers’ Congress (INBOC) and National Organisation of Bank Officers (NOBO) and the National Organisation of Bank Workers (NOBW) will take part in the strike called by the UFBU.

Services such as deposits and withdrawal at branches, cheque clearance, and loan approvals would be affected due to the strike. However, ATMs are likely to remain functional.

Banks were already closed on March 13 (second Saturday) and March 14 (Sunday), leading to a four-day break in regular banking operations. Services such as deposits and withdrawal at branches, cheque clearance and loan approvals would be affected due to the strike.

The strike comes after Union Finance Minister Nirmala Sitharaman‘s Budget announcement where she announced the privatisation of two public sector banks (apart from IDBI Bank) as part of the government’s disinvestment drive to generate Rs 1.75 lakh crore.

Apart from bank unions, all the unions in four General Insurance Companies will be on strike on March 17. All the unions in LIC are on strike on March 18, while unions of four insurance companies have called for a strike against the privatisation of public companies.



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