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Nationwide 3-Day Bank Strike Deferred After Late-Night Talks

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The UFBU called off its three-day nationwide bank strike after a late-night meeting with the IBA agreed to a committee on five-day banking.

India's banks avoided a major shutdown after the United Forum of Bank Unions (UFBU) called off a three-day nationwide strike that had been set to begin on Monday. The decision came after a late-night meeting with the Indian Banks' Association (IBA), which UFBU said began at 9.30 pm on Sunday.

Around 8 lakh bank officers and employees had been expected to join the walkout, which threatened to disrupt services at more than 1.81 lakh branches across the country. Customers had braced for three days of stalled branch work before the two sides reached an agreement hours before the strike was due to start.

Under the understanding announced by the UFBU, the IBA agreed to set up a joint committee immediately to examine the demand to make all Saturdays bank holidays. The committee is to study every option available, consult affected parties and search for a solution that works for all sides, with particular attention to customers.

R Sekaran, President of the All India Bank Officers' Confederation, confirmed the arrangement. "The IBA has agreed to constitute a high-level committee to review our demand for 'five-day banking,'" he said. "Representatives from the 'United Forum of Bank Unions' will also be part of this high-level committee. The committee will deliberate on this demand after consulting all stakeholders."

The two sides also agreed that talks would open with the IBA on changing the performance-linked incentive (PLI) scheme for officers at Scale IV and above, so their concerns could be carried to the government. In addition, other pending matters listed in the minutes from March 8, 2024, would be taken up so they could be settled soon. On the strength of these commitments, the UFBU said it would call off its planned protests and strikes for now.

Two demands behind the strike

The strike would have been the biggest step so far in a year-long campaign by bank unions built around two central demands: a five-day working week for banks, and revisions to a new incentive scheme for senior officers. Employees had planned to press hardest for the first, the introduction of "five-day banking" across all banks.

The five-day proposal is not new. In March 2024, the IBA agreed in principle to close banks on all Saturdays, with staff working about 40 minutes more each day from Monday to Friday in return. Unions say the plan was forwarded to the government for approval more than two years ago but has still not been cleared, leaving the change stalled despite the in-principle agreement.

The second flashpoint was the PLI scheme. Under it, officers at Scale IV and above can earn bonuses worth up to 365 days' basic pay, tied to performance. Other staff and officers up to Scale III are capped at a maximum of 15 days' basic pay plus dearness allowance. Unions have called the structure unfair, arguing it breaks an earlier understanding that bonuses should be linked to the performance of the whole bank and should apply equally to everyone.

Banks stayed open on Sunday

With the strike looming, banks and customers had already started preparing for the disruption. All public sector and regional rural banks remained open on Sunday, September 27, allowing customers to complete essential branch work before the planned stoppage.

The deferral removes the immediate threat to services, but it does not resolve the underlying issues. The joint committee on Saturday holidays has yet to be formed and to report, the talks on the PLI scheme have yet to begin, and the older matters from the March 2024 minutes remain to be settled. The UFBU framed its decision as calling off the action "for now," leaving open the option of returning to protest if the promised steps do not deliver.

bank strike deferred, UFBU, Indian Banks Association, five-day banking, PLI scheme banks, bank unions India, five-day working week banks, R Sekaran

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