The Ministry of Labour and Employment, Government of India, has issued a notification on December 11, 2024, declaring the Banking Industry as a public utility service under the Industrial Disputes Act, 1947 for an additional six-month period, starting from December 15, 2024.
Key Details of the Notification:
- Industry Declared as Public Utility Service: The Banking Industry, falling under Item 2 of the First Schedule of the Industrial Disputes Act, 1947, has been designated as a public utility service.
- Extension of Status: This declaration extends the previous notification issued on June 12, 2024, which classified the banking industry as a public utility service for six months. The new declaration will be effective from December 15, 2024, for another six months.
- Public Interest: The declaration underscores the government’s assessment that the services provided by the banking industry are crucial to maintaining the functioning of the economy, particularly financial systems, and the national interest.
Legal Framework:
- The extension is made under the proviso to sub-clause (vi) of clause (n) of section 2 of the Industrial Disputes Act, 1947, enabling the government to classify essential sectors as public utility services. This status aims to prevent strikes and disruptions in vital services like banking, which are central to the functioning of the economy.
Impact:
- Ensuring Stability: By declaring the banking sector as a public utility service, the government aims to prevent disruptions in banking services, such as strikes, which could adversely affect the financial system and public welfare.
- Economic Importance: This move highlights the critical role of banks in facilitating economic transactions, savings, and credit, making them integral to national economic stability.
Through this action, the Ministry of Labour and Employment ensures that the banking industry operates smoothly, without interruptions that could have significant repercussions for both individuals and businesses across the country.
