Banks will remain open on Sunday, September 27, giving customers an extra working day before a three-day nationwide bank strike begins on Monday. The special opening is meant to reduce disruption, as the September 28-30 strike would otherwise come immediately after the weekend, leaving many bank branches shut for five consecutive days.
The Reserve Bank of India has approved full operations at public sector and regional rural bank branches, offices, ATM-linked branches and currency chests on September 27 following a request from the Finance Ministry.
The strike has been called by the United Forum of Bank Unions (UFBU), an umbrella body of seven bank unions representing around eight lakh employees, or about 90% of the banking workforce. The unions have also threatened an indefinite strike from October 26 if their demands remain unresolved.
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Why are bank employees going on strike?
The main demand is a five-day banking week. Banks currently remain closed on the second and fourth Saturdays, but the unions want all Saturdays to be declared holidays.
The Indian Banks' Association had agreed to the proposal more than two years ago and sent it to the government for approval. However, the unions say it has still not been implemented.
"We are going ahead with the strike action," the UFBU said, noting that the five-day banking week was agreed under the last wage revision settlement in March 2024.
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What is the other major issue?
The unions are also opposing the performance-linked incentive scheme introduced under the 2020 wage settlement. A revised version for senior officials in Grade 4 and above, while excluding lower-scale staff, has led to concerns over how incentives are distributed.
What will be affected during the strike?
The timing of the strike could add to the disruption as September 30 is the banking sector's half-yearly closing date, when banks typically handle reconciliation and treasury-related work.
The biggest impact is expected at physical branches, particularly public sector banks. Cash transactions and cheque clearing could be affected, although the strike will not amount to a complete shutdown of banking services.
Digital services such as UPI, internet banking, mobile banking and ATMs are expected to continue functioning. Private banks are also expected to be less affected.
The government has asked the unions to call off the strike and continue negotiations. It has also started contingency planning to ensure cash availability and essential banking services at public sector branches.
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