Three-day bank strike begins Monday: Cash, cheque and other branch services may be disrupted

New Delhi: Banking services at branches across India are likely to be affected from Monday as bank unions begin a three-day nationwide strike demanding a five-day working week and action on several long-pending employee issues.

The United Forum of Bank Unions (UFBU), an umbrella body of seven major bank unions, has called the strike from September 28 to 30. The action comes just weeks after a nationwide one-day bank strike on September 11.

Branch-level services, including cash deposits and withdrawals, cheque processing and other routine transactions, are expected to be affected. Public sector banks and regional rural banks are likely to face the biggest impact.

As the strike begins after the weekend, customers may face disruptions to physical banking services for five consecutive days. September 30 is also the half-yearly closing day for banks, when lenders undertake reconciliation, settlements and other financial operations, potentially adding to pressure on branch services.

Digital banking services, including UPI, internet and mobile banking and ATM transactions, are expected to remain available. New-generation private banks are also likely to see relatively limited disruption as the strike is primarily backed by unions representing employees of public sector and regional rural banks.

State Bank of India has advised customers to complete essential branch-related transactions before the strike and use ATMs, internet and mobile banking, UPI and other digital channels. The bank has also said that some services may be affected despite efforts to maintain essential operations.

Five-day banking week

The unions' key demand is the implementation of a five-day banking week, with all Saturdays declared holidays.

The Indian Banks' Association had agreed to the proposal as part of the 2024 wage settlement. However, its implementation requires approval from the government.

The unions are also demanding changes to pension benefits, including the updating of pension benefits and a uniform dearness allowance formula for pensioners. They have also sought an option for employees covered under the National Pension System to switch to the Old Pension Scheme.

The government has urged bank employees to withdraw the strike and resolve the pending issues through discussions.

The Finance Ministry said the Performance Linked Incentive (PLI) scheme, one of the unions' major concerns, had already been kept in abeyance following discussions. It added that the demand for a five-day banking week was still under consideration.

Union leaders, however, have said that the lack of a firm commitment on the five-day banking week has left them with little option but to continue the agitation.

The UFBU has also warned of an indefinite nationwide strike from October 26 if the issue remains unresolved.