Banking services across India may face disruption on January 27, as bank employees’ unions have called for a nationwide strike to press for their long-pending demand for a five-day work week.
Most public sector banks have already informed customers about possible service interruptions if the strike goes ahead.
If the strike materialises, public sector banking operations could be affected for three consecutive days, as January 25 and 26 are already holidays, extending the impact for customers.
Why Have Bank Unions Called the Strike?
The strike stems from a wage revision settlement signed in March 2024 between the Indian Banks’ Association (IBA) and the United Forum of Bank Unions (UFBU), according to PTI. Under the agreement, both sides had agreed to declare all Saturdays as holidays, effectively introducing a five-day work week.
However, the decision has not yet been implemented, leading to growing dissatisfaction among bank employees.
After the UFBU served a formal strike notice, the Chief Labour Commissioner held conciliation meetings on Wednesday and Thursday in an attempt to resolve the issue. The unions, however, said the talks failed to produce any positive outcome.
“Despite detailed discussions, there was no positive outcome from the conciliation proceedings,” the UFBU said in a statement, adding that the strike plan remains unchanged.
Which Banks Are Likely to Be Affected?
Public sector banks expected to be impacted include:
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State Bank of India (SBI)
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Punjab National Bank (PNB)
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Bank of India
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Bank of Baroda
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Other government-owned banks
At present, bank employees receive holidays on second and fourth Saturdays, in addition to Sundays. This results in six-day work weeks for most of the year.
The UFBU has argued that shifting to a five-day work week would not reduce productivity, as employees have already agreed to work an additional 40 minutes per day from Monday to Friday.
Union’s Stand and Customer Impact
The union has expressed disappointment over the government’s response to its demands.
“It is unfortunate that the government is not responding to our genuine demand,” the UFBU said earlier this month.
The UFBU has also pointed out that institutions such as the Reserve Bank of India (RBI), LIC, stock exchanges, and government offices already follow a five-day work schedule, questioning why banks continue with a six-day system.
The UFBU is an umbrella body representing nine major bank unions, covering employees across public sector banks and some old-generation private banks.
Will Private Banks Be Affected?
The strike is not expected to impact major private sector banks, including HDFC Bank, ICICI Bank, and Kotak Mahindra Bank, which are likely to continue normal operations.
Customers are advised to plan transactions in advance and rely on digital banking services where possible.
