New Delhi, July 16 -- The finance ministry has directed all 12 public sector banks (PSBs) to institutionalize quarterly meetings with recognized employee unions and officers' associations, instead of engaging only when disputes arise, as it seeks to strengthen dialogue between management and staff, according to two government officials aware of the development and a communication reviewed by Mint.

However, the move, which comes amid increasing concerns over employee workload and mental well-being in PSBs, has drawn objections from major banking unions, which argue it could trigger disputes over which unions are legally entitled to negotiate with management.

In a 10 July communication, the Department of Financial Services (DFS) said inte...