Banking services were disrupted across India on Friday as bank employees and officers joined a nationwide strike demanding a five-day workweek and action on several long-pending service-related issues. The strike, called by the United Forum of Bank Unions (UFBU), had its biggest impact on public sector bank branches, where employees stayed away from work in large numbers.
The protest affected branch operations in several parts of the country, including Assam. In Guwahati, Silchar, Dibrugarh, Jorhat, Kokrajhar and other locations, employees of major public sector banks took part in demonstrations and strike activities. Customers visiting branches were left facing delays or unable to complete several routine banking transactions.
The central demand of the bank unions is a five-day banking week, under which banks would remain closed on all Saturdays and Sundays. At present, bank branches are generally closed on the second and fourth Saturdays, while they remain open on the first, third and, where applicable, fifth Saturdays.
The unions have argued that the nature of banking has changed considerably with the rapid growth of digital banking. Internet banking, mobile applications, UPI and ATMs now handle a large share of routine transactions, while branch employees continue to work under a schedule that includes Saturdays.
The proposal for a five-day banking week is also not new. The Indian Banks’ Association (IBA) had agreed to the proposal as part of the 12th Bipartite Settlement and 9th Joint Note signed in March 2024. Under the arrangement, working hours on weekdays would increase by around 40 minutes so that customer service hours could be maintained despite the additional weekly holiday. The proposal, however, has remained pending for government approval.
The delay has become a major point of frustration for bank employees. Unions say they have been waiting for the implementation of an agreement that was reached more than two years ago. They argue that the five-day workweek would improve work-life balance without significantly affecting banking services, particularly as customers increasingly rely on digital channels.
Another major issue behind the strike is the Performance Linked Incentive (PLI) scheme. Bank unions have objected to changes in the incentive structure for public sector bank employees and officers, particularly over differences in payouts across seniority levels.
The revised PLI framework became a flashpoint between employees and the authorities. The government has since kept the implementation of the scheme for 2025-26 in abeyance, with discussions expected to continue as part of the broader wage and service negotiations. The unions, however, have maintained that resolving the PLI issue does not address their primary demand for a five-day banking week.
Bank employees are also seeking action on pension-related matters, recruitment and staffing shortages and other service conditions. Pension updation and improvements in benefits for retired employees remain among the broader demands raised by banking unions.
The strike was expected to affect several branch-based services, including cash deposits and withdrawals, cheque processing, clearing, passbook updates, KYC-related work, documentation and other counter services. Customers needing loans, certificates or other services requiring direct staff intervention could also face delays.
Digital banking services, however, continued to function. UPI payments, mobile banking, internet banking and ATM transactions were largely available because these services do not depend on employees being physically present at bank branches. Some transactions that eventually require branch-level processing may still take longer to complete.
The impact of the strike was particularly visible because it came just before a weekend. September 12 is the second Saturday, followed by Sunday, meaning customers in many parts of the country could face limited access to physical bank branches over several consecutive days. Local holidays in some states could add to the disruption.
Bank unions have also made it clear that Friday’s strike may not be their final step. A three-day nationwide strike has been announced for September 28, 29 and 30. If the outstanding issues remain unresolved, unions have threatened an indefinite nationwide strike beginning October 26.
The series of planned protests puts additional pressure on the government and banking authorities to find a settlement. State Bank of India and other lenders have already informed customers about the possible impact of the strikes and said arrangements would be made to minimise disruption to essential services.
The dispute is therefore about more than an extra weekly holiday. Bank employees are linking the five-day workweek with concerns over workload, staffing, incentives, pensions and changing working conditions in India’s banking sector.
As banking becomes increasingly digital, the unions believe branch employees should also see a change in their working pattern. The government and banking authorities, meanwhile, face the challenge of balancing employee demands with uninterrupted customer service.
The immediate effect of Friday’s strike was felt mainly at physical bank branches, while digital banking continued to keep most routine transactions moving. The bigger question now is whether negotiations can prevent further strikes later this month and in October, or whether customers will again face widespread disruption across the banking system.