Bank unions have deferred their planned three-day nationwide strike after reaching understandings with the Indian Banks’ Association in a late-night meeting, averting major disruption to banking services across the country.

The strike, which would have brought banking operations to a standstill, was called off following the marathon round of talks between union leaders and the IBA late on Saturday night.

At the centre of the unions’ demands is a five-day banking week, along with other service and wage-related issues. The unions said the IBA had given assurances that their concerns would be addressed, prompting the deferral.

The decision will come as a relief to customers and businesses, as a nationwide bank strike would have affected branch operations, cheque clearances and cash availability.

Union leaders said they would watch the IBA’s follow-through closely and keep their options open if the assurances are not honoured.

The strike call had been backed by multiple bank employee unions, and its deferral follows weeks of negotiations. The five-day week demand has been a long-pending issue, with unions arguing that digital banking has already reduced the need for Saturday working.