The government has ruled out, any plans of privatize public sector banks of the country. It has advised to the Forum of Bank Unions (UFBU) to call off its proposed two day strike. The bank union has announced a two day strike on September 24 and 25 against the privatization of public sector banks. The center government said that it would hold 51 percent stakes in all government banks which would not affect their character. The union government hopes that the union would call off the strike for the overall interests of the people of country.

It is recalled that the Raghuram Rajan Committee and the Anwarul Hoda Committee has recommended the merger of public sector banks and amend the Banking Regulations Act [Deletion of Section 12(2)]. The amendment in this act would encourage foreign investment in banks.

The banks union also urged to solve their pension related problems, compassionate appointments and revision of wages. The union had submitted a memorandum of understanding to the government on February 25.