Bank Unions Hold Firm on Three-Day Strike From September 28

Public sector bank branches across India face three days of disruption from Monday, with the United Forum of Bank Unions (UFBU) showing no sign of calling off its nationwide strike scheduled for 28 to 30 September. As of Sunday morning, no settlement had been reported, and conciliation efforts earlier in the week had ended without agreement.

The Reserve Bank of India has tried to soften the blow by permitting public sector banks and regional rural banks, including their branches and currency chests, to operate on Sunday, 27 September. But that concession has itself become contested. The All India Bank Officers’ Association has reportedly advised its members not to report for work on Sunday, describing the day as a holiday under the Industrial Disputes Act, according to a report in The Economic Times. How many branches actually open their shutters today may therefore vary sharply from one bank and region to another.

What the unions want

The UFBU is an umbrella platform of bank employee and officer unions, including AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBEF and INBOC. Its central demand is a five-day working week, with all Saturdays declared holidays. Unions say this was agreed in principle in March 2024 but has never been notified.

The second major demand was the withdrawal of a performance-linked incentive scheme. The government has put that scheme in abeyance, but has not conceded the five-day week. Reports also list pension-related demands, including improvements for retirees and an option to move from the National Pension System to the old pension scheme.

The government’s position, as conveyed during the appeal for deferment on 21 September, was that the five-day banking proposal remains “under consideration” but requires consultation with many other stakeholders. Conciliation talks before the Deputy Chief Labour Commissioner on 22 September failed to break the deadlock.

C H Venkatachalam, general secretary of the All India Bank Employees’ Association, acknowledged the scale of the action last week. “In a country like India, three days’ banking strike is a big issue,” he told Business Standard, while arguing that the unions had been left with little choice.

Who is affected, and how

The strike is concentrated in public sector lenders. State Bank of India, Punjab National Bank, Bank of Baroda, Union Bank of India, Bank of India, Indian Bank and others have issued customer advisories. SBI has urged customers to complete essential transactions in advance and to use YONO, mobile banking and UPI during the stoppage.

Branch-dependent services are the most exposed: cash deposits and withdrawals over the counter, cheque clearing, demand drafts and loan processing. Digital channels and ATMs are expected to keep running. Several public sector banks have said they will waive ATM transaction charges, normally up to about ₹23 per transaction plus GST, during the strike period. Reports differ on the scope of the waiver, so customers should check with their own bank.

Large private lenders such as ICICI Bank, HDFC Bank and Axis Bank are not part of the UFBU and are expected to function normally on strike days.

The calendar makes the disruption worse. Saturday, 26 September was the fourth Saturday of the month, already a bank holiday. Without the Sunday opening, branches would effectively have been shut for five straight days, from 26 September to 30 September. Gandhi Jayanti on 2 October brings yet another closure in the same week. The government paid central salaries and pensions early, on 25 September, to cushion employees and pensioners.

Why it matters for business and investors

The timing is awkward for corporate India. Wednesday, 30 September marks the end of the first half of the financial year, when companies push through collections, vendor payments and tax-related transfers. A stoppage at public sector branches, which dominate cash handling and government business, will slow cheque clearance and physical transactions just as books are being closed.

Large corporates that rely on digital payment rails will feel less pain. Small traders, government departments and rural customers, who depend more on branch banking, will feel more. Currency chest operations that feed cash into ATMs are another pressure point if the stoppage stretches on.

For investors in public sector bank stocks, the strike is less about three lost days and more about what it signals. A five-day week, if eventually granted, would require changes to branch staffing and working hours. It would also sharpen the contrast in service availability between public and private lenders. Union demands on pensions also carry long-term cost implications that analysts will watch closely.

The broader question is one of productivity. Public sector banks have spent several years repairing balance sheets and improving profitability. Recurring industrial action, following a one-day strike on 11 September, risks denting customer confidence at a time when private banks and fintech platforms are competing hard for deposits.

What happens next

The immediate test is the strike itself from Monday to Wednesday. Watch for any last-minute intervention by the Department of Financial Services or the Indian Banks’ Association, and for clarity on whether branches that open on Sunday are adequately staffed.

Beyond this week, the unions have threatened an indefinite strike from 26 October if their demands remain unresolved. That would be a far more serious escalation, and would force the government to decide whether to notify the five-day week or hold its ground. For now, customers of public sector banks would be wise to plan their transactions around a disrupted week and rely on digital channels wherever possible.