Bank Services Set for Major Disruption in September as Unions Call Four-Day Strike Nationwide

Banking services across India could face major disruption next month after the United Forum of Bank Unions (UFBU) announced a series of nationwide strikes over long-pending demands, including the introduction of a five-day banking week.

The bank unions have called a one-day strike on September 11, followed by a three-day strike from September 28 to 30. The unions have warned of further industrial action if their demands are not addressed.

Four Days of Strike Action in September

The September 11 strike will be followed by another three-day nationwide walkout from September 28 to 30.

The action is expected to affect branch operations, particularly at public sector banks, although digital banking services such as internet banking, mobile banking and electronic payments are expected to remain available.

The timing of the strikes could extend the disruption for customers, with the September 11 action falling on a Friday, followed by the second Saturday and Sunday.

Five-Day Banking Remains Key Demand

The unions are demanding the implementation of a five-day banking system, under which banks would remain closed on all Saturdays and Sundays.

The Indian Banks’ Association (IBA) had agreed to the proposal as part of the 12th Bipartite Settlement and 9th Joint Note signed on March 8, 2024. The arrangement envisages extending working hours from Monday to Friday by 40 minutes a day.

The unions say the proposal was subsequently recommended to the Government but has remained pending for more than two years.

Dispute Over Performance-Linked Incentives

The unions are also opposing changes to the Performance Linked Incentive (PLI) scheme.

According to the UFBU, the agreed framework was supposed to be based on the overall performance of individual banks, with a uniform number of incentive days for employees and officers up to Scale VII.

The unions have objected to a revised system under which officers from Scale IV and above could receive incentives linked to individual performance, while employees and officers up to Scale III would remain subject to a maximum of 15 days of basic pay plus dearness allowance.

Pension Issues Also on Unions' Agenda

The unions have raised several pension-related demands alongside the five-day banking week and PLI dispute.

These include pension updation, improvements in pension benefits and changes concerning dearness allowance for pensioners. Unions have also sought an option for employees covered under the National Pension System to move to the Old Pension Scheme.

The UFBU has said that its latest strike programme reflects frustration over delays in resolving these issues.

Indefinite Strike Threat From October 26

The unions have also warned of an indefinite nationwide strike from October 26 if their demands remain unresolved.

The latest announcement follows demonstrations held across state capitals and major towns on August 12, where bank employees pressed for implementation of the five-day banking arrangement.

For customers, the immediate impact is likely to be felt most at physical bank branches. People requiring services such as cheque-related work, document verification, loan processing or other staff-assisted transactions may face delays during the strike dates.

Digital payment systems and online banking are expected to continue operating, although customers with time-sensitive branch work may need to complete it before the announced strike dates.