Bank employees across the country will strike work on July 7 to protest against the government decision to dilute its equity in the banks and giving foreign investors additional voting rights.

"We are against any such activities being carried out under the garb of banking reforms. Over 10 lakh employees across the banking system will be going on a single-day strike," All India Bank Employees Association (AIBEA) secretary Vishwas Utagi said on Tuesday.

The association is a part of the United Forum of Bank Unions (UFBU), an umbrella body of unions of all hues, which has given the strike call.

Utagi claimed that employees from foreign and private banks have also agreed to participate in the strike. The strike notice has already been to served to the Indian Banks Association as well as the Labour Commissioner.

The government intends to increase the voting rights for foreign entities beyond the present 10 percent through an amendment to the Banking Regulation Act.

"This is not acceptable to the federations," Utagi said, adding the strike is also to oppose the government decision to limit its stake in public sector banks at 51 percent, which Utagi termed is tantamount to privatisation.

The UFBU, which is against consolidation of the SBI Group by merging the five associate banks with SBI, will also resist any effort of consolidation among the state-run banks, Utagi said.

The minister said though microfinance has become a 'dirty' word, the MFIs are doing good job by bringing the required financial products to the doorsteps. But he also took a dig at them saying they should concentrate more on building social capital rather than trying to get foreign investments and improving balance sheets.

Referring to the Andhra Pradesh Government's Microfinance Act, he said the microfinance sector has to be regulated and the act is aimed at regulating the sector and not to strangulate.

"We don't want to strangulate the MFIs. We want to regulate them. That is the approach. MFIs should build up social capital. But the basic problem is MFIs are looking at balance sheets, share markets, and foreign investments," the minister said adding MFIs should not look to poor as the business model.