Banking services across public sector banks in India are expected to face significant disruptions on Tuesday, January 27, as bank unions have called for a nationwide strike. The strike is organized by the Union Forum of Bank Unions (UBFU), an umbrella body representing nine unions of bank employees, demanding the immediate implementation of a five-day workweek policy.
The strike follows a meeting with the Chief Labour Commissioner on January 23, during which the unions sought assurances on their demands. The meeting ended without a concrete commitment, prompting the unions to proceed with the strike.
This marks the third consecutive day of banking service disruptions, following closures on January 25 (Sunday) and January 26 (Republic Day). The ongoing strike is expected to cause further inconvenience to customers and may lead to substantial operational challenges.
The unrest stems from an agreement reached in March 2024 between the Indian Banks’ Association (IBA) and the United Forum of Bank Unions (UFBU) to declare all Saturdays as holidays. However, the policy has not yet been implemented, causing dissatisfaction among bank employees. Currently, employees enjoy holidays on the second and fourth Saturdays of each month, but the majority of the year still operates on a six-day schedule.
Bank employees argue that shifting to a five-day workweek will not impact productivity, as they have already extended their daily shifts by 40 minutes from Monday to Friday to compensate for the additional day off.
In response to the strike, an urgent meeting was convened under the chairmanship of the Secretary of the Department of Financial Services, attended by the Chairman of the State Bank of India, managing directors, CEOs of nationalized banks, and representatives from the Indian Banks’ Association. Banks were advised to ensure the smooth functioning of essential services, including customer support, digital banking channels, clearing and settlement operations, government transactions, and service delivery through business correspondents.
Major public sector banks such as State Bank of India, Punjab National Bank, Bank of India, and Bank of Baroda are expected to be heavily impacted by the strike.