The RBI employees union body's (United Forum of Reserve Bank Officers and Employees (UFRBOE)) mass casual leave on 4 and 5 September has been deferred after discussion with the bank management, the UFRBOE said on Monday.

"Consequent to series of meetings between top management of Reserve Bank of India with unions, the forum has decided to defer the programme of mass casual leave scheduled on September 4 and 5 to first week of January, 2019 in response to the bank's request to give some more time to resolve the demands," it said in a statement.

The mass casual leave programme was likely to have paralyzed operations of the central bank and other major lenders across the country. The mass casual leave was called for by the union to demand an option for contributory provident fund (CPF) retainers to switch over to the pension scheme, and grant of an additional provident fund (APF) to those recruited in the bank from 2012. The forum had threatened that if the issue lingered, then they would resort to flash strike for two days.

The Ministry of Finance on Friday clarified that the banks would function as usual this week."It is hereby clarified that banks will remain open and banking activity will continue unimpeded in the first week of September. Banks will only observe holidays on Sunday, 2nd September and second Saturday, 8th September."

It further said, " Even on those days, ATMs in all States will be fully functional and there will be no impact on online banking transactions. Banks have been advised to ensure that sufficient cash is available for dispensation from ATMs. Banks will remain open on all other days."