Bank branches across India, particularly those of public-sector lenders, are facing disruption today, September 11, as the United Forum of Bank Unions (UFBU) goes ahead with a nationwide strike demanding implementation of a five-day banking week and changes to the Performance Linked Incentive (PLI) system.
The strike is not the same as a nationwide bank holiday: September 11 is not a pan-India holiday under the RBI’s regular calendar, although some centres may have separate local holidays.
The UFBU, which represents seven major bank employee and officer organisations, said it decided to proceed after talks with the Indian Banks’ Association (IBA) and government authorities failed to produce a concrete timeline for five-day banking.
SBI, Bank of Baroda, Canara Bank and other lenders have warned that branch operations could be affected, while urging customers to use ATMs, UPI, internet and mobile banking. Most private-sector banks are expected to remain operational, although customers should check individual branches.
The action could also create an extended interruption for branch banking in some regions because September 12 is the second Saturday, September 13 is Sunday, and September 14 is a bank holiday in several centres.
Branch Services Face Disruption
For customers, the immediate concern is whether they can walk into a branch and complete routine banking work. The answer varies by bank and location, but physical services are likely to be affected, particularly at public-sector banks where union participation is expected to be significant.
SBI has said it has made arrangements for normal functioning of branches and offices, while cautioning that operations may nevertheless be affected because of the strike. The country’s largest lender has advised customers to complete important transactions in advance and use ATMs, Automated Deposit Cum Withdrawal Machines, Customer Service Points, internet banking, YONO, mobile banking and UPI.
Bank of Baroda has similarly warned that the functioning of its branches and offices could be affected. In a regulatory disclosure, the lender said it had received strike notices from the UFBU and the Akhil Bhartiya Bank of Baroda Officer’s Sangathan.
Canara Bank has also warned of possible disruption to branch and office operations. The wider action covers major lenders including Punjab National Bank, Union Bank of India, Indian Bank and Bank of Maharashtra.
The scale of the disruption is already evident in states such as Madhya Pradesh, where reports said around 42,000 employees across nearly 7,000 branches participated, affecting banking transactions estimated at about ₹5,500 crore in one day.
For customers, however, the distinction between a strike and a holiday remains crucial. Digital banking services such as UPI, internet banking, mobile banking and ATM transactions are expected to remain available, although individual technical or cash-availability issues can still occur.
Branch-dependent work such as cash-counter transactions, cheque processing, KYC updates, document submission, locker access and some loan-related services may face delays. Meanwhile, most private banks are expected to continue operations, meaning customers of lenders such as HDFC Bank and ICICI Bank should not automatically assume their branches are closed.
Why Unions Are Holding Firm
At the centre of the dispute is the long-pending demand for a five-day banking week. Bank unions argue that the proposal was included in the 12th Bipartite Settlement and 9th Joint Note signed on March 8, 2024.
Under the proposed arrangement, Saturdays other than the existing second and fourth Saturdays would become holidays, with working hours adjusted on weekdays. More than two years later, the unions say the proposal has not been implemented, despite earlier assurances.
The UFBU comprises seven major employee and officer organisations: AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBEF and INBOC. According to the AIBEA’s latest circular, discussions were held with the IBA on September 4, followed by conciliation involving the Deputy Chief Labour Commissioner and the Department of Financial Services. The union said no concrete timeline or positive assurance on five-day banking emerged from these discussions. As a result, it rejected appeals to defer the strike and called for the September 11 action to proceed.
The Performance Linked Incentive (PLI) system has also become a point of contention, particularly for senior public-sector bank officers. While the government has put the revised PLI scheme for FY 2025-26 in abeyance following discussions, the unions have maintained that this does not resolve the larger issue of five-day banking. The failed UFBU-IBA discussions on September 4 further hardened the unions’ position, with reports saying the deadlock over the five-day week remained unresolved.
The strike is also part of a wider escalation rather than an isolated one-day action. The UFBU has announced another three-day strike from September 28 to 30, followed by a proposed continuous strike from October 26. SBI and Bank of Baroda have both disclosed these strike notices and cautioned that their operations could be affected.
The Logical Indian’s Perspective
A disagreement over working conditions, employee rights and banking reforms should not have to translate into prolonged uncertainty for ordinary customers. Bank employees are entitled to raise legitimate workplace concerns, and the unions’ demand for clarity on a proposal that they say was agreed to in 2024 deserves a meaningful response from the authorities.
At the same time, banking is an essential public service, and repeated or prolonged disruptions can disproportionately affect elderly customers, small businesses, daily-wage workers and people who depend on physical branches for essential transactions. The government’s decision to engage with the unions, the unions’ willingness to participate in negotiations, and the banks’ efforts to maintain essential services are all important parts of finding a constructive way forward.
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