Indian public sector banks hit by nationwide strike over five-day week demands

Public sector banking operations across India ground to a near-halt on Friday as employees launched a nationwide strike to demand a five-day working week and pension reforms.

The strike, organised by the United Forum of Bank Unions (UFBU), has shut down or severely thinned staffing at major state-run lenders, including the State Bank of India, Punjab National Bank, Union Bank of India, and IDBI Bank. The UFBU is an umbrella group of seven unions representing about 90 per cent of all bank officers and staff in the country.

The industrial action comes at a sensitive time for the government, coinciding with the two-day BRICS summit starting in India on Saturday.

What is disrupted and what is working?

If you need to visit a physical branch of a state-run bank, you will likely find the doors locked or the counters empty.

Branch-level services have taken the hardest hit. Customers cannot deposit or withdraw cash over the counter, cheque clearing processes are delayed, and routine administrative and back-office tasks have stopped.

However, modern banking means everyday transactions are largely unaffected. Digital services—including UPI transfers, mobile apps, and online banking platforms—are running as normal. Most private sector banks are also functioning as usual, so customers who do not rely on state-run institutions will notice little difference.

Why are bank employees on strike?

The core of the dispute is a long-delayed promise to change how banks operate on weekends. Currently, Indian banks are open on the first, third, and fifth Saturdays of every month.

Although the Indian Banks’ Association agreed to transition to a five-day week during bilateral talks in March 2024, the change has been sitting with the central government waiting for final clearance. Union leaders argue the delay is unjustified, pointing out that since roughly 90 per cent of customer transactions now happen digitally, there is no practical reason to keep physical branches open on Saturdays.

"Since there was no positive outcome and the government did not agree to our demand, this strike is forced on us," said CH Venkatachalam, General Secretary of the All India Bank Employees Association.

Beyond the five-day week, protesters are demanding pension reforms. They want retirees' pension calculations overhauled, a standard formula applied to the Dearness Allowance, and an option for current employees to switch from the National Pension System back to the more generous Old Pension Scheme.

What happens next?

This is unlikely to be a one-off disruption. If the government does not move on the demands, the UFBU has warned it will ramp up pressure.

The unions have already scheduled a three-day strike from September 28 to September 30. If those talks fail, the umbrella group says it will call an indefinite, countrywide bank strike starting on October 26.