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UFBU Calls Off Nationwide Bank Strike on 24th and 25th Mar 2025 After Assurances from Finance Ministry and IBA

I n a significant development on March 21, 2025, the United Forum of Bank Unions (UFBU) has decided to call off their two-day nationwide strike, which was originally planned for March 24 and 25. This decision was made after the UFBU received positive reassurances from both the Finance Ministry and the Indian Banks’ Association (IBA) regarding their key demands. The banking unions, under the umbrella body of UFBU, represent employees from nine major unions across the country, including AIBEA, AIBOC, NCBE, AIBOA, and BEFI. The unions had earlier called for the nationwide strike to protest against several ongoing issues that they believe impact the welfare and job security of bank employees. Key Issues Behind the Proposed Strike The strike was initially called by UFBU to address a range of pressing concerns, some of which have been lingering for years. The union's main demands included: Five-Day Workweek for Bank Employees:  One of the most anticipated demands was the implementation o...
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BASEL II - Three Pillar Approach.

There are three pillars in BASEL II - 
  1. Minimum Capital Requirement.
  2. Supervisory Review of the Capital Adequacy and
  3. Market Discipline/public Disclosures.
Pillar I(Minimum Capital Requirement) -
  • Credit Risk 
    • Standard Approach
    • Internal Rating Based Approach
    • IRB Foundation 
    • IRB Advanced
  • Market Risk
    • Standard Measurement method
    • Internal Method Approach
  • Operational Risk
    • Basic Indicators
    • Standardization Approach
    • Advanced Measurement Approach.
Pillar II(Supervisory Review)  
  • Process for accessing the capital adequacy relative to the risk profile(ICAAP =Internal Capital Adequacy Assessment Process)
    • Also the risks for which no capital requirement is calculated in pillar I(interest rate and liquidity risk of the banking book, business risks etc).
  • Enhance the development and use of better risk management and risk mitigation techniques.
  • Supervisory review process.
Four Principles of Supervisory Review-
  • Internal process in banks for assessing capital adequacy in relation to risk profile.
  • Supervisory review and evaluation of banks internal capital adequacy assessment strategies.
  • Supervisors to expect banks to operate above the minimum regulatory capital ratios.
  • Supervisory actions intervention at an early stage to prevent slippage.

Pillar III(Market Discipline)
  • Disclosure Requirement
    • For different risk methodology and instrument type.
  • Basic requirements and additional recommendations regarding the disclosed information. 

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