India's financial system crippled on Tuesday

India's financial system crippled on Tuesday

NEW DELHI - Banking services across India were disrupted on Tuesday after two bank unions announced a 24-hour-long strike in protest against the Central government's decision to merge ten public sector banks into four bigger banks.

The plan to merge banks link was one of several measures undertaken by the Central government to revive economic growth which has been on the lower side for the last five years.

The announcement, once implemented, will bring down the number of such banks from 27 in 2017 to 12 in 2019.

The All India Bank Employees' Association (AIBEA) and the Bank Employees Federation of India (BEFI) are the two unions leading the protest against the recent merger of banks, falling deposit rates and the lack of job security, media reports said.

About 350,000 employees affiliated to these two unions link and BEFI) are taking part in the strike, Sputnik has reported.

The bank unions decided to go ahead with their strike after talks with the Chief Labour Commissioner of the Indian Ministry of Labour had failed on Monday.