RBI stir hits transactions worth Rs5,000,000 crore, bonds trading

21 February 2009

A nationwide strike by employees and officers of the Reserve Bank of India (RBI) today stalled transfer and clearing transactions amounting to almost Rs50,00,000 crore. The strike also affected trading in government bonds.

RBI employees struck work demanding parity in pension with central and state government employees. They also demanded grant of family pension at the rate of 30 per cent without ceiling, computation of pension at an enhanced rate and improvement in pension scheme and gratuity on the lines of the recommendations of the Sixth central pay commission.

The strike affected real time settlement (RTGS) transactions worth Rs3,00,000 crore and clearing of around 18,00,000 cheques all over India – mainly in Mumbai (8,00,000 cheques) and metro centres – for a total amount of approximately Rs20,00,000 crore.

There were no settlements in the domestic money market, foreign exchange market and the stock exchanges.

Trading in central government bonds came to a standstill as 25,000 employees of the RBI struck work. Volumes in corporate bonds were also hard hit.

There was no trading in government bonds as the central bank's electronic trading platform was shut. Settlement for brokered deals will now take place on Tuesday, as markets stay closed on Monday for a public holiday.