Bank branches to remain closed on Sunday

United News of India

11 hours ago

Chennai, August 3 (UNI) Contrary to their earlier decision, several public sector banks have decided to keep their branches closed today, said a top official of All India Bank Employees' Association (AIBEA).
However some banks have instructed their Business Correspondents office to be open and the automatic teller machines (ATM) to be loaded with sufficient cash so that farmers can withdraw cash today under the Pradan Mantri Kisan Samman Nidhi (PM-Kisan) scheme.
'It seems the banks have realised the legal infirmities raised by the bank unions in opening the branches on Sunday and decided to reverse their earlier decision,' C.H.Venkatachalam, General Secretary, AIBEA, told UNI.
Indian Bank, Union Bank of India, Bank of Baroda while announcing its decision to keep the branches open today has asked is Zonal/Regional/Branch offices to ensure the functioning of the Business Correspondents office and ATMs are loaded with cash.
Business Correspondents are authorised intermediaries of banks to offer banking services in unbanked and remote areas.
The Bengaluru headquartered Canara Bank have instructed its Circle Offices that it has withdrawn the circular to keep the branches open today.
On Saturday the United Forum of Bank Unions (UFBU)-an umbrella body of bank unions said public sector banks are not legally authorised to open their core banking solution (CBS) on Sunday as directed by the Department of Financial Services.
The Department of Financial Services has directed the public sector banks to keep branches open on August 3, 2025, specifically for the disbursement under the PM-KISAN scheme.
The Ministry of Agriculture, Department of Agriculture & Farmers Welfare has also written a letter in this regard, the UFBU said.
In a letter to the Secretary, Department of Financial Services, the UFBU has said: 'No notification has been issued by the Reserve Bank of India (RBI) declaring 3rd August, 2025 (Sunday) as a working day under the Negotiable Instruments Act. There has also been no Gazette notification to the effect that 3rd August, 2025 Sunday will be a working day for the Banks.'
'In the absence of such a notification, banks are not legally authorized to open the CBS system and transact business on this day,' the letter adds.
According to UFBU, this omission implies that the business conducted will not be legally recognized for cheque clearing, interbank transactions, or other legally compliant operations.
The UFBU said adhering to the directive of working on August 3, 2025 would make the bankers work 12 consecutive days, that is, from July 28, 2025 to 8th August, 2025.
'This is beyond the purview of any provisions of labour laws that entire staff have to work for such continuous periods without any break and one can imagine the fatigue and exhaustion that the staff would be subjected to by the same,' UFBU said.
Pointing out that the government must have been aware that the 20th instalment under the Scheme was due on these dates and could have asked the Banks to work out a method to handle this work through discussion with the Unions so that the process becomes smooth and less-cumbersome.
The UFBU has demanded the immediate withdrawal of directions to keep branches open on Sundays or holidays unless legally mandated under the Negotiable Instruments Act and through Gazette notification.
UNI VJ RKM