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.
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