Bank Strike Dispute
Bank unions plan a three-day nationwide strike after the Finance Ministry disputes five-day workweek claims.
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Key Points
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The government said it had agreed to several other demands in the previous wage round, including a 17% wage hike, after the IBA had sought to limit the increase to 11%, according to a Finance Ministry official.
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The unions have also pointed to the Reserve Bank of India and the Department of Financial Services, both of which follow a five-day working week, as examples supporting their demand.
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Beyond the September 28–30 stoppage, the Finance Ministry said an indefinite strike over the five-day-week demand had been proposed for October 26.
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The revised performance-linked incentive scheme, now on hold, was notified in November 2024 for FY26 and applies to officers at Scale IV and above, with incentives of up to 365 days’ basic pay tied to performance.
India's bank unions are planning a three-day nationwide strike from September 28 to 30, 2026, to push for a five-day workweek. The United Forum of Bank Unions, representing roughly 90% of bank staff, says the demand was part of the March 2024 wage settlement but remains unresolved. Finance Ministry officials say the government never agreed to this change and that it was never discussed in negotiations.
Banks currently open on select Saturdays—the first, third, and fifth of each month. To reduce disruption, the government has ordered public-sector banks to open on Sunday, September 27, and asked departments to pay September salaries early. The Times Now News reported that an indefinite strike over the same issue has been proposed to begin October 26 if demands are not met.
Government Disputes Five-Day Week Agreement
Finance Ministry sources have firmly denied that the government committed to a five-day workweek for banks. Officials state the demand was pushed by unions alone and never appeared in formal wage negotiations. According to a Finance Ministry official, the government approved other major benefits in the March 2024 round, including a 17% wage hike after the Indian Banks' Association initially sought only 11%.
Union leaders have claimed the Indian Banks' Association recommended the five-day week in the settlement, but only pending government approval. Finance Ministry sources say this claim is false and that no such discussion took place. The disagreement over who promised what has become the core dispute fueling the strike call.
Unions Point to RBI and Financial Services as Models
Bank unions argue their demand is reasonable by pointing to precedent. The Reserve Bank of India and the Department of Financial Services—both government bodies—already operate on five-day workweeks. Union leaders say banks should follow the same standard to give employees equal treatment and better work-life balance.
The United Forum of Bank Unions says the five-day week proposal includes longer weekday hours to keep banking services running smoothly. If banks stayed open Monday through Friday with extended hours, total customer service time would remain similar or increase, the unions argue.
Strike Timeline and Government's Precautions
The planned three-day strike runs September 28 to 30, 2026. Times Now News reported that if demands go unmet, unions have announced an indefinite strike beginning October 26. The government wants to prevent chaos around banking half-year closing dates, so it directed public-sector banks to open on Sunday, September 27, and told departments to pay salaries early.
Bank branches normally open on the first, third, and fifth Saturdays of each month. A full three-day strike would halt these weekend operations and weekday services, hitting customers and businesses hard. The early salary directive aims to let people withdraw cash before the stoppage begins.
Other Unresolved Demands Still in Limbo
Beyond the workweek issue, unions achieved wins on improved family pensions in the 2024 settlement. However, a revised performance-linked incentive scheme remains frozen. This scheme, notified in November 2024 for the fiscal year 2026, offers officers at Scale IV and higher ranks incentives of up to 365 days' basic pay based on job performance.
The incentive scheme's suspension signals deeper tension between management and unions over pay and working conditions. Union leaders view the scheme suspension as evidence that the wage round remains incomplete, strengthening their argument that the five-day week should have been locked in as a binding commitment.
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