- Government urges public sector banks to ensure ATM cash during Sept 28-30 strike
- Bank unions demand five-day banking week and oppose Performance Linked Incentive scheme
- Previous one-day strike on Sept 11 preceded planned three-day strike and possible indefinite strike
The government has asked public sector banks to ensure adequate cash availability in ATMs and minimise disruption to customers ahead of a three-day nationwide bank strike scheduled from Sept. 28 to Sept. 30. The Department of Financial Services (DFS) held a meeting with the chiefs of public sector banks on Monday to discuss measures to ensure continuity of essential banking services during the strike.
Sources said banks have been asked to ensure sufficient cash availability in ATMs during the strike period. Key branches have also been asked to remain operational to the extent possible, while banks have been directed to take measures to minimise inconvenience to customers.
The meeting comes ahead of the three-day strike called by bank unions and associations from Sept. 28. The proposed strike follows a one-day strike held on Sept. 11.
Why Are Bank Unions Striking?
The United Forum of Bank Unions and other unions and associations in public sector banks, supported by regional rural banks, have been seeking the implementation of a five-day banking week.
The unions had also raised objections to the Performance Linked Incentive (PLI) scheme. According to the government's statement, it has already decided to keep the PLI scheme in abeyance, thereby addressing one of the two principal demands raised by the unions.
The government said it subsequently held several rounds of conciliation with the unions to address the remaining issues through dialogue. However, the unions proceeded with the one-day strike on Sept. 11 and have now scheduled another three-day strike from Sept. 28 to Sept. 30. An indefinite strike has also been proposed from Oct. 26 over the five-day workweek demand.
ALSO READ: Crypto Gains As Crude Cools: Bitcoin Hits 8-Month High Of $85,000; Brent Slips To $100
The five-day banking demand has been pending since the 2024 wage settlement, according to reports on the dispute.
Five-Day Closure Risk
The timing of the proposed strike could result in an extended disruption to branch-based banking services.
Sept. 26 is the second Saturday of the month and Sept. 27 is a Sunday. With the proposed strike beginning on September 28 and continuing through September 30, bank customers could therefore face limited branch services for five consecutive days from September 26 to September 30.
The three-day strike also coincides with the half-yearly closing of banks on Sept. 30, a particularly important date for reconciliation, provisioning and treasury and market operations.
Government Highlights Steps For Bank Employees
In its statement, the government highlighted several measures taken in recent years for the welfare of public sector bank employees. These include increases in salaries and allowances, revised pay scales, expansion of the Staff Welfare Fund by 56% in August 2024, an increase in executive posts and higher recruitment.
According to the government, public sector banks recruited around 4,82,800 employees between FY2014-15 and FY2025-26, with recruitment doubling over the last three years. As of July 1, 2026, 95.84% of officer positions and 92% of subordinate/award staff positions were filled.
The government also cited streamlined promotion and transfer processes, special leave provisions for women employees, revisions to family pension, medical insurance changes for retirees and higher conveyance allowance for employees with disabilities.
It said negotiations for the upcoming bipartite settlement have also begun ahead of the November 2027 deadline, with the stated aim of completing the process well in advance.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.