An estimated 450,000 workers of state-run and private banks proceeded on a day-long strike in order to protest against the merging state-owned banks, on Wednesday, which has partially affected the cash transactions and clearing operations.

The strike was called by the All India Bank Employees Association (AIBEA) and the All India Bank Officers’ Association (AIBOA), after their talks with the government failed on Tuesday.

The national president of AIBEA, Mr. Rajen Nagar said, “These mergers are not in national interest. It not only amounts to job loss, but also hampers banking services for small customers like agriculture business and small and medium enterprises.”

In most cities across the country, although, the banks remained opened, services were severely affected, which are particularly related to the customer services and treasury operation, while the money market operations were normal.

Also, earlier on Aug. 6 and 7, unions representing about 900,000 employees in publicly owned banks went on strike for an issue of higher salaries and pension, which impacted cash transactions and foreign exchange trading volumes for those 2 days.

The IBA official has informed that, after having several rounds of negotiations, Indian Banks Association and United Forum of Bank Unions (UFBU) have reached an agreement for a 17.5 per cent wage hike for the employees in banks.