Tensions Escalate Ahead of Nationwide Bank Strike Tensions between bank employees and the Ministry of Finance have escalated following an official clarification regarding the long-standing demand for a five-day work week. Ahead of a three-day nationwide strike called by the United Forum of Bank Unions (UFBU) from September 28 to 30, a senior Finance Ministry official stated on condition of anonymity that the government never committed to declaring all Saturdays as holidays for bank branches.
The official claimed that union representatives are "twisting the facts," asserting that a five-day work week was never used as an official negotiating tool during previous wage talks. Currently, Indian bank branches remain open on the first, third, and fifth Saturdays of every month, while closing on the second and fourth Saturdays.
What Do the Bank Unions Claim?
Bank unions, under the UFBU umbrella, maintain that a proposal for a 5-day work week was mutually agreed upon in principle with the Indian Banks’ Association (IBA) during the 12th Bipartite Settlement signed in March 2024. According to the settlement document, the IBA agreed to recommend the change to the government, proposing longer daily weekday hours to compensate for working time lost on Saturdays. Unions argue that despite assurances, final notification from the Ministry of Finance and clearance from the Reserve Bank of India (RBI) have been unjustifiably delayed.
Why Is the Dispute Happening Now?
The strike timing is crucial as September 30 marks the half-yearly financial closing for financial institutions. Alongside the 5-day week demand, unions have raised concerns over mounting operational workloads, staff shortages, and pushback against performance-linked incentive schemes. Finance Ministry sources emphasized that while the government granted a 17% wage hike and increased family pensions during recent settlements, formal approval for a complete weekend shutdown was never finalized.
Impact on Bank Customers and Next Steps
To minimize customer hardship during the planned strike, public sector and regional rural banks were instructed to remain open on Sunday, September 27. This temporary arrangement ensures branch services are accessible right before the three-day strike window. While online banking, UPI, and ATM networks are expected to function normally, physical branch services like cheque clearances, cash deposits, and official paperwork may face significant delays. Conciliation talks remain ongoing between government representatives and union leaders.