MUMBAI, April 9: The bank employees who have been planning to take long leave to utilise the spate of holidays in the month of April have been disappointed over the Reserve Bank of India (RBI) directive to keep the public sector banks open either on Sunday or Saturday depending on the number of holidays in each state. While the industry associations have raised a hue and cry about the number of holidays in April, the employees feel that the issue has been blown out of proportion by the media under the influence of the corporate sector.``We will take up the matter with the RBI, the central government and Maharashtra government for declaring Sunday as a working day,'' he added. It is under union pressure that the RBI changed its earlier circular asking banks to keep Sunday open. A minority religious group has also made a representation to the RBI in this regard.
According to industry bodies, the cumulative losses to the banking system due to the holidays in April alone amounts to a whopping Rs 1,000crore the figure is disputed by the bank employees. In April alone, public sector banks will be closed for six government holidays in addition to the four Saturdays when they work half day and four Sundays. In addition banks were to remain closed on April 8, April 9, 10, 11 and 12. ``If Sundays are also kept open, the overtime cost will be Rs 80 crore. Can banks afford it?'' asked one of the union leaders.
Thanks to the issue raised by various industry associations, Reserve bank of India has advised all commercial banks, including regional rural banks and cooperative banks that in states where there are no three consecutive bank holidays from April 8 to 10, 1998, bank branches need not function on April 12, 1998 (being a Sunday). In other states where there are three consecutive banks holidays from April 8 to April 10, 1998, the employees observing Easter Sunday will be exempted from attending office on April 12, 1998. It will be a normal weekly holiday for them. There is no change in the decision to haveSaturday April 11, 1998 as a full working day in all states announced earlier.
The same instructions will also apply to the offices of the RBI. The foreign exchange market and money market will also remain open accordingly. In fact, this will be for the first time that banks and forex market will be open on a Sunday. ``It is to be seen how many customers will go to a bank on a Sunday,'' said a banker.
The AIAI has calculated that out of 365 days in an year, a bank employee work only 161 days -- after previlege and sick leave of 30 days each, casual leave of 12 days, three bank holidays plus 104 Saturdays and Sundays. ``How can Vijay Kalantri calculate 104 holidays in an year. Saturday is not a holiday as bank employees work till 3 p m and some of them stay back even upto 5 pm. There is no optional holiday for bank employees as claimed by him. Are the employees of Kalantri not enjoying privilege leave and other leave enjoyed by the bank employees,'' asks P K Menon, President, All India Bank Employees(AIBEA). On two occasions in the past, bank officers took casual leave in large numbers to oppose such a move.
``It is not the bank employees alone who are enjoying the holidays. Even the industry is enjoying holidays on many of these days. The industry had raised similar hue and cry when the bank employees demanded five working days a week. There has been no recruitment in the banking sector over the last several years even though the work load has been increasing,'' said a bank employee.
Even though the bank employees will get a whopping Rs 36 crore as overtime for working on holidays, many bank officers who are from outside Mumbai were planning to utilise the holidays for going to their native place or to take a break.
While some of the multinational companies and foreign investors have cited the large number of holidays in general discouraging foreign investment, the domestic industry feels that the lack of clearance on bank holidays will have cumulative effect on the economy. ``Each bank closurecauses Rs 100 crore loss to the economy. Loss of production, loss of man days, increase in production costs and delays in meeting commitments in international trade are some of the impact resulting from bank holidays,'' says All India Association of Industries.
Every working day, thousands of crores worth cheques are cleared through the electronic clearing system of the central bank. Delays in cheque clearance will affect the operations of stock markets, foreign exchange market, commodities market and even the ordinary citizens will face difficulties in conducting small transactions through cheque.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
