Bank customers across the country are unlikely to face the disruption that had been anticipated this week, as the United Forum of Bank Unions (UFBU) has deferred its proposed three-day nationwide strike scheduled from September 28 to September 30, 2026.
The decision came after representatives of the UFBU and the Indian Banks’ Association (IBA) held discussions late on Sunday night, September 27. The meeting, which began at around 9:30 pm, focused on several long-pending demands raised by banking unions, particularly the proposal for a five-day working week and changes to the Performance Linked Incentive (PLI) system for senior bank officers.
Following the discussions, both sides agreed to set up a joint committee to examine the demand for making all Saturdays holidays for bank employees. The committee will study different possibilities, consult the relevant stakeholders and attempt to arrive at a solution that takes into consideration the interests of banks as well as their customers.
The five-day banking week has been a long-standing demand of banking unions. Under the existing arrangement, bank branches generally remain closed on the second and fourth Saturdays of each month, along with Sundays.
The Performance Linked Incentive scheme for officers in Scale IV and above was another important issue discussed during the meeting. The IBA and UFBU will continue discussions on possible changes to the scheme before taking the matter forward with the government.
The two sides have also agreed to revisit other pending matters mentioned in the minutes of their meeting held on March 8, 2024. The objective will be to examine the unresolved issues and work towards finding solutions through further discussions.
The UFBU’s decision to defer the strike follows the understanding reached during the Sunday night meeting. The proposed three-day action had raised concerns about possible disruption to banking services across the country, as a large number of employees and officers were expected to participate.
With the strike now deferred, bank branches are expected to continue their normal operations from September 28. Customers who had been preparing for possible service interruptions during the three-day period can therefore expect regular banking services, subject to the normal working schedules of individual banks.
The latest development also shifts attention towards the proposed joint committee and the upcoming discussions between the banking unions and the IBA. The outcome of those discussions will determine the next steps on the five-day workweek demand, the PLI issue and other outstanding matters.
