Bank of India plans to use its subsidiary for Core Banking Activities, Union Warns of Strike

Bank of India has decided to engage its subsidiary, BOI Services Ltd (BOISL), for carrying out activities related to the bank’s core business operations.

The bank has engaged its subsidiary to sell liability products and other banking products. The subsidiary is expected to act as the bank’s business arm, and the scope of its activities may be expanded depending on the success of the pilot project.

BOI Services Ltd has been assigned several responsibilities, including generating business leads, helping in customer onboarding, conducting field-level verification of prospective customers, assisting in opening deposit accounts, savings accounts, current accounts and retail term deposit accounts, and supporting customers with the required documentation.

It will also promote financial literacy, market and sell the bank’s liability and digital products, activate services such as mobile banking, internet banking, auto-debit, POS and QR code facilities, and increase the bank’s overall deposit base.

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Bank Union said that Bank of India had earlier established a dedicated marketing department to increase business and strengthen its sales operations. The department was responsible for generating business leads, acquiring new customers, opening new accounts, sourcing business, studying competitors and identifying business opportunities in different areas.

The bank had also deployed dedicated Feet-on-Street (FoS) sales teams across the country to cover different geographical markets and promote its liability and asset products. The federation further stated that the bank had recruited marketing personnel, executives and professionals to strengthen its sales force. However, it alleged that the marketing structure was gradually dismantled for reasons that were not clear. Instead of rebuilding the marketing department and recruiting sufficient Customer Service Associates (CSAs) and Marketing Executives, the bank has now decided to use its subsidiary for carrying out these functions.

Association takes Action

In a letter dated November 9, 2026, addressed to the Managing Director and CEO of Bank of India, the federation has demanded that the bank withdraw its decision to outsource core banking activities to the subsidiary. It has also warned that if the services of BOI Services Ltd are not discontinued within one month, the employees’ union may be forced to launch protest actions, including a strike.

The Federation of Bank of India Staff Unions, has argued that these activities are part of the core business functions of a bank and should be performed by the bank’s regular employees. It pointed out that Bank of India has been successfully carrying out these activities since its establishment more than 120 years ago and has never needed to outsource such important functions to an external agency.

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The union has also raised concerns over the Bipartite Settlement dated March 8, 2024. It referred to Schedule II, Part A of the settlement, which lists the duties of Customer Service Associates. According to the federation, marketing the bank’s products and acquiring new business are already included in the responsibilities of CSAs. It argued that the bank should fill vacancies, recruit qualified marketing professionals or deploy available CSAs to perform these duties instead of assigning the work to BOI Services Ltd.

The federation alleged that engaging the subsidiary for these activities shows disregard for the provisions of the existing Bipartite Settlements and applicable labour laws. It also raised concerns over the possible violation of Section 57 of Chapter XI, Part I of the Occupational Safety, Health and Working Conditions Code, 2020, read with the Occupational Safety, Health and Working Conditions (Central) Rules, 2026.

The letter also referred to an earlier industrial dispute concerning the outsourcing of banking activities and work of a permanent and continuous nature. The matter had been taken up for conciliation by the Chief Labour Commissioner (Central), who acted as the Conciliation Officer.

According to the federation, meetings were held on November 18, 2022, November 24, 2023, and January 17, 2024. Following discussions, the Conciliation Officer had advised the bank management not to take unilateral decisions regarding the outsourcing of permanent and continuous work and to maintain the existing position on the matter.

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In view of these concerns, the Federation of Bank of India Staff Unions has urged the bank’s management to cancel any contract entered into with BOI Services Ltd for carrying out core banking activities. It has also demanded that the bank stop using the subsidiary for work related to its core functions, revive its marketing department, recruit adequate staff and ensure that core banking activities are not outsourced beyond the provisions of the Bipartite Settlement dated June 2, 2005.

The federation has asked the management to correct its decision within one month. It has clearly warned that if BOI Services Ltd continues to perform the bank’s core activities after this period, the union will be compelled to take protest measures, which may also include strike action.

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