Banking operations at public sector banks across the country are likely to be disrupted on Tuesday as bank unions go ahead with a nationwide strike to press for the immediate implementation of a five-day work week. The strike has been called by the United Forum of Bank Unions (UFBU), an umbrella body of nine unions representing bank officers and employees, after conciliation meetings with the chief labour commissioner on January 22 and 23 failed to yield any assurance on their demand, union leaders said.With banks already closed on January 23 (Basant Panchami), January 24 (fourth Saturday), January 25 (Sunday) and January 26 (Republic Day), the strike on January 27 is expected to disrupt branch-level services for five consecutive days.“Despite detailed discussions during the conciliation proceedings, there was no assurance on our demand. Hence, we have been compelled to proceed with the strike action,” C H Venkatachalam, general secretary of the All India Bank Employees Association (AIBEA), a UFBU constituent, told PTI.
What services will be affected
Branch-level services such as cash deposits, withdrawals, cheque clearances and administrative work are expected to be hit at public sector lenders, including State Bank of India (SBI), Punjab National Bank (PNB) and Bank of Baroda.However, operations at major private sector banks such as HDFC Bank, ICICI Bank and Axis Bank are expected to remain largely unaffected, as their employees are not part of the unions participating in the strike.Digital banking services, including UPI, mobile and internet banking, will continue to function, though ATM cash availability could face localised issues due to logistical delays.
Why unions are striking
The unions are demanding that all Saturdays be declared holidays, a proposal they say was agreed upon during the 12th Bipartite Settlement signed with the Indian Banks’ Association (IBA) in March 2024 but is yet to be notified by the government. “It is unfortunate that the government is not responding to our genuine demand. There would be no loss of man-hours as we have agreed to work an extra 40 minutes daily from Monday to Friday,” Rupam Roy, general secretary of the All India Bank Officers’ Confederation (AIBOC), said.At present, banks remain open on the first, third and fifth Saturdays of every month.Union leaders said the strike was not aimed at inconveniencing customers. “This movement is not against customers, but for a sustainable, humane, and efficient banking system. A rested banker serves the nation better. A balanced workforce strengthens financial stability. 5-Day banking is not a luxury; it is an economic and human necessity,” L Chandrasekhar, general secretary of the National Confederation of Bank Employees (NCBE), said.
Government banks step in to limit disruption
An urgent meeting was held on Monday under the chairmanship of the secretary, department of financial services, with the chairman of SBI, managing directors and CEOs of nationalised banks, and the chief executive of the IBA, sources told ANI.Banks were advised to take all necessary steps to ensure smooth functioning of customer services, digital channels, clearing and settlement systems, government business and services delivered through business correspondents.Sources said banks have conveyed that ATMs are being adequately loaded with sufficient cash and arrangements made for timely replenishment. While branch operations may be impacted, digital banking services are expected to remain available seamlessly.Several public sector banks, including SBI, have also informed stock exchanges about the possible impact.“We advise that while the bank has made necessary arrangements to ensure normal functioning in its branches and offices on the day of strike, it is likely that work in the bank may be impacted by the strike,” SBI said in a regulatory filing on Friday.
