Banking services across India could face repeated disruptions from September as the United Forum of Bank Unions (UFBU), an umbrella body representing nine bank employees’ and officers’ unions, has announced a phased nationwide strike over two key demands — implementation of a five-day banking week and withdrawal of the revised performance-linked incentive (PLI) scheme.
The unions have announced three rounds of industrial action, including an indefinite strike if the government and bank management fail to address their demands.
The UFBU has announced the following schedule:
September 11: One-day nationwide strike
September 28–30: Three-day nationwide strike
From October 26: Indefinite nationwide strike
The first strike falls on a Friday. With the following weekend and additional state-specific holidays, banking operations could remain disrupted for several days in some parts of the country.
The three-day strike from September 28 is also significant as it coincides with the half-yearly closing period for banks, potentially affecting branch operations and transaction-related services.
The demand for a five-day banking week is not new. The Indian Banks’ Association (IBA) had agreed to the proposal as part of the 12th Bipartite Settlement and 9th Joint Note signed on March 8, 2024.
Under the arrangement, banks would operate from Monday to Friday, with daily working hours increased by 40 minutes to compensate for the additional holidays.
The proposal was subsequently recommended to the government for approval. However, according to the UFBU, a final decision has remained pending for more than two years.
The unions argue that implementation of the five-day week would bring bank employees in line with practices followed in several other sectors while retaining the required working hours.
The second major flashpoint is the revised performance-linked incentive scheme directed by the Department of Financial Services under the Finance Ministry.
The UFBU has termed the framework discriminatory, particularly because it provides significantly higher potential incentives to senior officers compared with lower-ranked employees and officers.
According to the unions, officers in Scale IV and above could receive PLI of up to 365 days of basic pay based on individual performance. In contrast, workmen employees and officers up to Scale III would be eligible for a maximum of 15 days of basic pay plus dearness allowance.
The unions contend that this structure goes against the understanding reached with the IBA under the Bipartite Settlement.
Their position is that PLI should primarily reflect the overall performance of the bank and should be structured equitably across employees, rather than disproportionately rewarding senior officers.
Although the five-day week and PLI scheme are the immediate triggers for the latest agitation, the unions have also raised several pending issues, including pension-related matters.
The UFBU said its decision to intensify the agitation followed what it described as a negative response from the government and bank management to its demands.
If the strikes go ahead as announced, customers of public sector banks are likely to experience the most visible impact, particularly during the three-day action in September and the proposed indefinite strike from October 26.
Digital banking, ATMs and other automated services may continue to function, but branch-based services such as cash transactions, cheque processing and other counter operations could be affected depending on participation levels.
The unions have indicated that the strike programme is intended to press the government and bank management to resolve the issues through negotiations before the proposed indefinite action begins.