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.