He said that the Centre should work towards driving reforms in public sector banking to rein in the huge amount of NPAs and improve the lower levels of credit off-take.
Nearly 75 per cent of the banking services are expected to be hit on Tuesday owing to the strike and no cheque clearances will take place. The demand of the bank union also includes giving compensation to employees for extra work done on account of demonetisation and booking loan defaulters.
T Ravindhranath, general secretary of the All India Andhra Bank Award Employees Association, said, "Barring a few private sector entities all banks in Telangana downed shutters".
However, two of the nine bank unions - National Organisation of Bank Workers and National Organisation of Bank Officers - under the UFBU, which are affiliated to the Bharatiya Mazdoor Sangh, will not be participating in the strike, according to the Press Trust of India.
Not agreeing with that view, D. Thomas Franco Rajendra Dev, Senior Vice President of the All India Bank Officers Confederation (AIBOC), told IANS: "Our demand is to treat all the employees equally". Despite attempts of RBI to defeat the strike by keeping clearing houses to function, the major clearing operations in the country were disrupted.
The functioning of private lenders like ICICI Bank, HDFC Bank, Axis Bank and Kotak Mahindra Bank is expected to be normal except delay in cheque clearances.
The UFBU, which claims membership of almost 10 lakh across banks, also requested the government for cost reimbursement of demonetisation to banks. Apart from opposing merger of banks and the practice of outsourcing, the strike was in support of recruitments in the banks, added Mr. Venkataramaiah.