Bank strike will impact financial predictability, business continuity, say trade bodies

…weekend, could effectively result in a prolonged disruption of banking services during the critical month-end and half-year closing period, the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) said. “ This will particularly impact MSMEs and businesses that depend on timely payments, collections, salary disbursements, statutory payments and working-capital transactions, ” said Uma Reddy, president of FKCCI. Small, medium and micro enterprises, as well as traders, require financial predictability and business continuity, especially when cash flows and financial settlements are critical,…

…she said. Responding to a query, K. Ravi, president of the Bangalore Chamber of Industry and Commerce (BCIC), said that though it was termed a three-day bank strike, its practical impact could extend to five days. “ Businesses may face interest and penalties for delayed payments, while exporters could face delays in bank guarantees SMEs may struggle with limited access to cash, and suspended clearing operations could create backlogs in high-value settlements, especially around the September 30 half-yearly closing Mr. Ravi further said. Published…