Bank customers could face repeated disruptions over the coming weeks after the United Forum of Bank Unions (UFBU) announced a series of strikes over its long-pending demand for a five-day working week and its opposition to the government’s revised Performance Linked Incentive (PLI) scheme.
The UFBU, which says it represents more than 90 per cent of the banking workforce, has called a one-day nationwide strike for September 11, followed by another three-day strike from September 28 to 30.
The unions have also issued a much bigger warning: if their demands remain unresolved, they have threatened an indefinite strike from October 26, 2026.
The proposed industrial action could affect banking operations across several categories of banks, as the UFBU comprises seven organisations — the All India Bank Employees’ Association (AIBEA), All India Bank Officers’ Confederation (AIBOC), National Confederation of Bank Employees (NCBE), All India Bank Officers’ Association (AIBOA), Bank Employees Federation of India (BEFI), Indian National Bank Officers’ Congress (INBOC) and Indian National Bank Employees’ Federation (INBEF).
Five-day banking week remains at the centre of dispute
The unions’ principal demand is the implementation of a five-day banking week, an issue that has remained pending despite agreements and recommendations made over several years.
According to the unions, the move towards a five-day week began with the decision to make the second and fourth Saturdays holidays in 2015. The matter was subsequently taken up again and formed part of the wage settlement signed on March 8, 2024.
Under the proposed arrangement, bank employees would work an additional 40 minutes each weekday from Monday to Friday, allowing all Saturdays to become holidays.
The UFBU maintains that the proposal has already been recommended to the Finance Ministry but is still awaiting the government’s approval.
The unions have also pointed out that several financial and government-linked institutions, including the Reserve Bank of India, LIC, GIC and NABARD, already operate on a five-day working pattern.
They argue that extending the arrangement to banks would not necessarily reduce customer service hours because employees have agreed to longer working hours during weekdays.
Unions oppose revised PLI scheme
The second major point of contention is the government’s revised Performance Linked Incentive scheme.
The UFBU is demanding the withdrawal of the existing scheme and has called for any changes to the incentive structure to be discussed and finalised through bilateral negotiations with the unions.
The forum has also sought a resolution to several residual issues that it says remain pending.
The unions’ position is that these unresolved matters require negotiations rather than unilateral changes.
What could happen to banking services?
The first proposed strike falls on Friday, September 11. This could lead to disruptions in banking operations, particularly at public sector banks, depending on the level of participation.
The timing could further affect physical banking services in some states because the strike would be followed by the second Saturday and Sunday. September 14 is also a holiday in some states on account of Ganesh Chaturthi.
The impact on customers may vary depending on the bank, location and services involved. Digital banking, internet banking and ATM services may continue to operate, although customers could experience delays in certain transactions or back-office services during periods of industrial action.
The larger concern for the banking sector is the possibility of repeated disruptions if the September strikes do not result in a resolution.
With another three-day strike scheduled for September 28–30 and an indefinite strike threatened from October 26, the dispute could become a prolonged confrontation between bank unions and the government unless negotiations lead to a settlement.
For customers, the immediate takeaway is to plan important branch-dependent banking work in advance, particularly around the announced strike dates and adjoining holidays.
