Banking services were disrupted across India on Friday as bank employees and officers observed a nationwide one-day strike called by the United Forum of Bank Unions (UFBU), with the implementation of a five-day working week remaining the central demand.

In Madhya Pradesh, the strike affected operations at around 7,000 bank branches and disrupted business estimated at nearly ₹5,500 crore in a single day, according to the Madhya Pradesh Bank Employees Association. Around 42,000 employees and officers from participating banks joined the protest. 

The strike has particularly affected branch-based services such as cash deposits and withdrawals, cheque clearance, fixed-deposit related work, treasury operations and other financial transactions. Digital services such as UPI, internet banking, mobile banking and ATMs are expected to remain available, although some branch-linked requests may face delays. 

Why Are Bank Employees on Strike?

The main issue behind the nationwide protest is the long-pending demand to introduce a five-day banking week.

Bank unions have argued that the proposal was agreed upon as part of the 12th Bipartite Settlement signed with the Indian Banks’ Association (IBA) in March 2024. Under the proposal, banks would remain closed on all Saturdays, while working hours from Monday to Friday would be increased by around 40 minutes each day.

Despite the agreement and subsequent recommendation to the government, the final implementation has remained pending. The All India Bank Employees Association said recent discussions with the government did not provide a definite timeline, leading UFBU to proceed with the September 11 strike. 

What Does Five-Day Banking Mean?

At present, bank branches generally remain closed on the second and fourth Saturdays, apart from Sundays and other notified holidays.

Under the proposed five-day system, every Saturday would become a holiday. The additional weekly holiday would be offset by longer working hours on weekdays.

The proposal is aimed at bringing bank working arrangements closer to the five-day schedule followed in several other sectors.

PLI Dispute Also Featured in Union Protest

Performance-linked incentives have also been a major point of disagreement between unions and the banking establishment.

However, the latest developments have changed the status of this issue. According to an AIBEA circular, the Performance Linked Incentive scheme for Scale IV to VIII officers for 2025-26 has been kept in abeyance and the matter is to be discussed bilaterally. 

Bank unions had earlier criticised the revised PLI structure, arguing that it created differences between senior officers and other employees. The issue has also been part of the broader industrial dispute involving the unions, management and the government.

Pension and Other Demands

The unions are also pressing for several long-standing pension-related demands.

These include pension updation, a uniform dearness allowance calculation formula for pensioners and an option for employees covered under the National Pension System to move to the Old Pension Scheme.

Other demands raised by unions include improvements in recruitment and service conditions and resolution of pending issues affecting retired bank employees. 

More Strikes Planned in September and October

The September 11 strike is the first stage of UFBU's planned escalation.

Bank unions have announced another nationwide three-day strike from September 28 to September 30, 2026. They have also warned of an indefinite nationwide strike from October 26 if their demands remain unresolved. 

For customers, the immediate impact is expected to be concentrated on physical branch services. Customers requiring cash deposits or withdrawals, cheque-related work, KYC updates, loan-related documentation and other branch-dependent services may need to wait until normal operations resume.

In Madhya Pradesh, branches are expected to reopen on Monday after the Friday strike and the scheduled second Saturday and Sunday holidays. 

Banking operations were disrupted across Madhya Pradesh on Friday as around 42,000 bank employees from nearly 7,000 branches joined the nationwide strike called by the United Forum of Bank Unions (UFBU), demanding implementation of a five-day banking week.

Bank branches remained closed across the state, while employees held demonstrations, including protests in Bhopal. The strike affected routine branch-level services such as cash transactions, cheque handling and other physical banking work. A bank employees' organisation estimated that business worth nearly ₹5,500 crore was affected in Madhya Pradesh during the one-day strike.

The nationwide action has primarily been called over the demand to introduce a five-day work week, along with objections to the current Performance Linked Incentive (PLI) framework and several long-pending employee and pension-related issues.

Why Are Bank Employees on Strike?

The main demand of the unions is that all Saturdays should be declared holidays for bank employees, replacing the existing arrangement under which banks generally remain closed only on the second and fourth Saturdays.

The unions have argued that the five-day banking week should be implemented by adjusting working hours on weekdays. Under the proposal discussed by the unions, working time from Monday to Friday would increase by around 40 minutes each day to compensate for the additional Saturday holiday.

The demand has remained pending despite earlier discussions between employee unions and banking authorities. 

PLI Scheme Also a Major Point of Dispute

The UFBU has also raised objections to the Performance Linked Incentive scheme applicable to senior bank officers.

Bank unions have argued that the present arrangement could create differences between employees and disproportionately benefit a relatively small group of senior officials.

The unions are seeking changes to the scheme and have linked the issue to their broader concerns over service conditions and the direction of banking-sector reforms. 

Pension, Recruitment Issues Also Pending

The five-day week is not the only issue raised by bank unions.

Employee organisations have also been pressing for resolution of various pension-related demands, including pension updation and issues concerning benefits for pensioners.

They have additionally called for adequate recruitment of clerical staff, subordinate employees and security personnel, arguing that staff shortages are increasing the workload on existing employees.

Other demands reportedly include changes relating to dearness allowance and pension arrangements.

How Has the Strike Affected Customers?

The biggest immediate impact has been on branch-based banking services.

Customers requiring services such as cheque deposits, cheque processing, document submission, KYC-related work and other transactions that require physical interaction with a branch may face delays.

However, digital banking channels such as UPI, internet banking, mobile banking and ATMs generally remain available, although the availability of cash at individual ATMs can depend on local replenishment arrangements. 

Customers with urgent branch-related work have therefore been advised to plan transactions around the strike and subsequent holidays.

Bhopal Sees Employee Protests

In Bhopal, bank employees affiliated with the UFBU held demonstrations as part of the nationwide action.

Employees raised slogans in support of the five-day banking week and other pending demands. The protests added a visible local dimension to an industrial action taking place across the country.

The nationwide strike represents a coordinated effort by several bank employee and officer unions under the UFBU umbrella, which represents a large share of India's banking workforce. 

Another Bank Strike Planned in September

Friday's strike is not expected to be the last disruption this month.

Bank unions have announced another three-day nationwide strike from September 28 to September 30 over the unresolved demands. 

The timing could make the next round particularly significant for banks because the period coincides with half-yearly closing-related work.

Unions have also warned of further industrial action if their demands remain unresolved.

What Happens Next?

The latest strike puts renewed pressure on the government and banking authorities to address the five-day work week demand and other issues raised by employees.

For bank customers, the immediate disruption is largely concentrated on physical branch services, while digital channels continue to provide alternatives for many routine transactions.

The larger dispute, however, is about how banking work should be organised as India's financial system becomes increasingly digital while branch employees continue to handle a substantial volume of customer-facing and regulatory work.

A major banking fraud has surfaced in Madhya Pradesh's Ratlam, where an outsourced employee of UCO Bank allegedly duped around 40 customers of more than ₹85 lakh by fraudulently breaking their fixed deposits (FDs) and transferring the money into his own account and those of his relatives and associates. Police have arrested seven people, including the outsourced employee and a former branch manager, in connection with the alleged conspiracy.

The fraud came to light after multiple customers reported discrepancies in their bank accounts and fixed deposits. Investigators believe the scam involved unauthorized transactions carried out through the bank's mobile application and internal access to customer accounts.

Complaint Exposes the Fraud

The case began after Ratlam resident Dinesh Banjara lodged a complaint at Manak Chowk Police Station on June 30 against Rahul Rathore, an outsourced employee at UCO Bank's Lakkadpeetha branch.

According to the complaint, Banjara had visited the branch on May 14 to open an account and handed over ₹72,500 to Rahul, who accepted the money, issued a bank-stamped receipt, and asked him to collect his passbook and ATM card a few days later.

However, when Banjara later attempted to withdraw the deposited amount, he was informed that only ₹2,500 was available in his account. The discrepancy prompted him to approach the police, leading to a wider investigation.

Fixed Deposits Allegedly Broken Through Mobile App

During the investigation, police found that Rahul Rathore had allegedly used the bank's mobile application to prematurely break customers' fixed deposits without their knowledge. The funds were initially transferred to his own account before being distributed among the accounts of his relatives and acquaintances.

Police said that as the investigation progressed, more victims came forward with similar complaints. So far, authorities have identified nearly 40 customers whose fixed deposits, ranging from ₹20,000 to ₹5 lakh, were allegedly misappropriated.

The total amount involved in the fraud has been estimated at more than ₹85 lakh.

Former Bank Manager Among Accused

Investigators also found alleged involvement of former UCO Bank branch manager Trilok Jha, who was previously posted at the Ratlam branch and is currently serving in Vadodara, Gujarat.

Police allege that the fraud was carried out as part of a planned conspiracy involving both the outsourced employee and the former manager. The investigation is examining the extent of each accused person's role in facilitating the fraudulent transactions.

Money Routed Through Relatives and Associates

According to police, Rahul Rathore transferred the fraudulently obtained money from his account to the bank accounts of his brother-in-law and several acquaintances. Investigators believe these individuals were allegedly persuaded to allow their accounts to be used in exchange for financial benefits.

Authorities are tracing the money trail and examining all linked bank accounts to determine the complete flow of funds.

Seven Arrested, Investigation Continues

Police have arrested Rahul Rathore, former manager Trilok Jha, Rahul's brother-in-law Mukesh Rathore, and four other accused identified as Ravi Kumawat, Dinesh Dhirajshah, Arun Jain and Jitendra Kumawat.

Rahul Rathore has been remanded to police custody until July 9 for further interrogation, while the remaining accused have been sent to judicial custody.

Investigators said they are verifying additional complaints and have not ruled out the possibility of more victims or further arrests as the probe continues.

The case has raised serious concerns about internal banking controls, customer account security and oversight of outsourced personnel handling sensitive financial transactions.