1 week ago
Indian Bank Unions Announce Strikes Over Five-Day Banking
Indian bank unions have announced several strikes in 2026.
They want banks to close on every Saturday and operate for longer hours on the other five weekdays.
The unions say this five-day plan was agreed with the Indian Banks’ Association but still needs government approval.
They also oppose a new bonus system for senior bank officers.
The unions say the new system rewards some senior officers much more than other bank workers.
The Department of Financial Services says the revised system is intended to reward senior executives and improve bank performance.
The unions want the bonus to depend more on how the whole bank performs.
They are also asking for better pensions and another retirement-plan choice for some employees.
The United Forum of Bank Unions announced nationwide strikes on September 11 and September 28-30, 2026.
UFBU plans an indefinite strike from October 26 if the government and bank management do not resolve its demands.
The unions say five-day banking was included in a March 8, 2024, settlement, with 40 additional working minutes from Monday through Friday.
UFBU opposes the Department of Financial Services’ revised PLI framework, seeking bank-wide performance measures and uniform incentives across cadres.
The unions also seek pension updates, a uniform dearness-allowance formula and an option for National Pension System employees to join the Old Pension Scheme.
- Who
- The United Forum of Bank Unions, an umbrella body representing nine bank employees’ and officers’ unions.
- What
- A phased series of nationwide strikes over five-day banking, the revised performance-linked incentive scheme and unresolved pension and service-related demands.
- Where
- Across India, with banking services expected to be particularly affected in public sector banks.
- When
- September 11; September 28-30; and indefinitely from October 26, 2026, if the demands remain unresolved.
- Why
- UFBU says the five-day banking proposal remains pending, the revised PLI framework differs from earlier union-IBA arrangements, and pension-related demands remain unresolved.
Bank Unions’ Position
Government and Bank-Management Position
Five-day banking
Bank Unions’ Position
UFBU says the Indian Banks’ Association agreed to five-day banking and recommended it to the government, but approval has remained pending for more than two years.
Government and Bank-Management Position
The articles say government approval and required clearances are still awaited, but do not provide a detailed government response on the proposal.
Performance-linked incentives
Bank Unions’ Position
UFBU wants PLI to reflect the overall performance of each bank and remain uniform across employees and officers up to Scale VII. It calls the revised framework discriminatory because it offers substantially higher potential rewards to senior officers.
Government and Bank-Management Position
The Department of Financial Services introduced a revised framework for senior executives and officers from Scale IV upward. The government says the changes are intended to reward senior executives and improve productivity and competitiveness in public sector banks.
PLI implementation during proceedings
Bank Unions’ Position
UFBU says implementation while conciliation is pending breaches the status quo obligation. It has offered bilateral discussions with the Indian Banks’ Association and challenged the framework in the Delhi High Court.
Government and Bank-Management Position
The Department of Financial Services advised banks to implement the revised framework, and UFBU says payments under it have begun. The articles do not include a detailed response from the department to the unions’ legal allegations.
Key facts
- Organising body
- United Forum of Bank Unions, representing nine bank employees’ and officers’ unions.
- Strike schedule
- One-day strike on September 11; three-day strike from September 28-30; indefinite strike from October 26, 2026.
- Expected impact
- Banking services, particularly in public sector banks, could be disrupted for several days in parts of India.
- Five-day banking proposal
- Banks would close on all Saturdays, while working hours would increase by about 40 minutes per day from Monday through Friday.
- Agreement cited
- The proposal was recorded in the 12th Bipartite Settlement and 9th Joint Note signed on March 8, 2024, subject to government approval and clearances.
- PLI dispute
- UFBU says its earlier understanding linked incentives to overall bank performance and provided uniform incentives for employees and officers up to Scale VII.
- Other demands
- The unions seek pension updation and improvement, a uniform dearness-allowance formula for pensioners, and an NPS-to-OPS option.
Quotes
United Forum of Bank Unions (UFBU)
Umbrella body representing major bank employee and officer unions
“DFS/Finance Ministry has directed Banks to implement a different PLI scheme for Scale IV officers and above. Under this Scheme, the officers from Scale IV and above would be paid PLI upto 365 days of Basic Pay based on their individual performance while workmen employees and officers upto Scale IlI would be paid a maximum of 15 days Basic Pay+DA.”
livemint.com
“The IBA has agreed in the 12" BPS/9" Joint Note signed on 8" March, 2024 to introduce 5 days banking (by increasing 40 minutes of working hours daily from Monday to Friday) and the same has been duly recommended to the Government.”
livemint.com
Sources
Bank unions threaten nationwide strike on September 11 over five-day banking, pension demands
Bank Unions To Strike On September 11 Over Five-Day Banking, PLI Scheme And Other Demands
Bank Unions Threaten Nationwide Strike on Sep 11, Press For 5-Day Week
Bank unions to strike on Sept 11 over five-day banking, PLI scheme, other demands
Bank unions announce strikes over 5-day banking, PLI scheme and pension demands
Bank strike: Unions call nationwide shutdown over 2 key demands — 5-day work week, PLI scheme rollback; check dates here
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