Patna, Aug. 3: All banks, including private ones, would be closed on August 5 to protest against the central government’s decision to carry out banking sector reforms and privatisation of nationalised banks.

About 10 lakh officers and employees of all public and private sector banks under the banner of United Forum of Bank Unions (UFBU) consisting of nine trade unions would go on a nationwide daylong strike in support of their demands.

It is expected that the strike would be a major one as public sector undertakings (PSU), private sector, foreign banks, regional rural banks or co-operative banks would not carry out any transaction.

Anirudh Akhauri, the general secretary of State Bank of India Officers Association, Patna circle, said: “Our automated teller machines (ATMs) will function round-the-clock as our intention is not to put consumers in any difficulty.”

Expressing reservation on government hastening the process of banking sector reforms, Bihar Provincial Bank Employees’ Association president Rameshwar Prasad said: “We have serious reservations on several issues and that’s why we have decided to go on a day’s strike. We are completely against the government’s decision to allow foreign direct investment (FDI) upto 74 per cent in PSU banks. This is a step towards privatising the PSU banks.”

The issues on which the union has been opposing are privatisation of PSU banks, reduction of government equity in PSU banks, merger of banks, unrestricted entry of foreign capital in banking sector, allowing license to industrial houses to start their own banks, outsourcing of permanent banking jobs and others.

The union has also opposed the recommendations of Narasimham Committee, which recommended for merger of PSU banks, saying it would thwart the very purpose of the government bringing more people in the network of financial inclusion. Similarly, the Khandelwal Committee report, which recommended differential pay for bank officials based on performance, should be scrapped, they added.

General secretary of Bank Employees’ Federation of India, B. Prasad, said: “There are certain facilities such as compassionate appointments, five-day work, certain fixed working hours, pension and others which the employees of PSUs and central government are availing and hence the same treatment should be extended to banking employees also.”

State Bank of India Staff Association vice-president D.N. Pandey, All India Banking Officers Association general secretary Kumar Arvind, Incof general secretary R.K. Chatterjee also presented their views.