Three-day strike from September 28–30 coincides with half-yearly bank closing; Government says dialogue remains the preferred route
New Delhi : The Government has urged bank employees and unions to resolve outstanding issues through dialogue and bilateral engagement, as the United Forum of Bank Unions and certain other unions and associations in Public Sector Banks, supported by Regional Rural Banks, have announced further strike action over the demand for a five-day banking workweek.
The unions had initially raised two principal demands—implementation of five-day banking and withdrawal of the Performance Linked Incentive (PLI) scheme. Following discussions with the Government, the PLI scheme was kept in abeyance, thereby addressing one of the two major demands.
The Government said several rounds of conciliation have subsequently been held to discuss the remaining issue. Despite these efforts, a one-day strike was observed on September 11, 2026, while unions have announced a three-day strike from September 28 to 30, followed by a proposed indefinite strike from October 26, centred on the five-day workweek demand.
Government lists measures for bank employees
The Government has highlighted a series of measures undertaken in recent years to improve the working conditions, welfare and career prospects of employees in Public Sector Banks.
These include revised salaries and allowances and new pay scales across cadres, along with a 56% enhancement in the Staff Welfare Fund in August 2024. The fund supports activities such as healthcare expenses, canteen subsidies, sports and cultural programmes and educational assistance for serving and retired employees.
The number of executive positions at the levels of Assistant General Manager, Deputy General Manager, General Manager and Chief General Manager has also been increased.
According to the Government, recruitment in PSBs has expanded substantially, with approximately 4,82,800 employees recruited between FY 2014-15 and FY 2025-26. Recruitment doubled during the last three years. As of July 1, 2026, around 95.84% of officer positions and 92% of subordinate/award staff positions were reported to be filled.
Other measures include Aadhaar authentication in recruitment, streamlined declaration of recruitment results, improved promotion processes and online transfer systems that enable timely transfers and allow employees to provide location preferences during transfers and promotions.
Additional welfare measures
The Government has also listed several employee and retiree welfare initiatives, including special leave provisions for women employees covering areas such as menstrual leave, infertility treatment, adoption of a second child and stillbirth.
Other measures include:
- Revision of family pension for bank retirees and pension options for eligible resignees.
- Introduction of monthly ex-gratia payments for pensioners and family pensioners during the current bipartite settlement period.
- Enhancement of ex-gratia for pre-1986 retirees and their families.
- A revised medical insurance policy for retirees with a base-policy framework.
- Higher conveyance allowance for employees with benchmark disabilities (PwBD).
- Reduction in the time required to complete wage settlements.
Early negotiations for next wage settlement
The Government has also said that, for the first time, negotiations for the upcoming Bipartite Settlement have begun well ahead of the November 2027 deadline, with the objective of completing the process in advance and ensuring timely revision of bankers’ salaries and allowances.
The Government said these measures demonstrate its continuing efforts to address employee welfare while maintaining the efficiency and stability of the banking system.
September 28–30 strike period coincides with half-yearly closing
The Government has particularly highlighted the timing of the proposed September 28–30 strike, as September 30 marks the half-yearly closing of banks.
According to the Government, the date is important for activities including reconciliation, provisioning, treasury operations and market-related transactions. A three-day strike, preceded by the weekend, could therefore result in an extended disruption of banking services, potentially affecting customers, businesses, Government transactions and international banking operations.
The Government also recalled that the second and fourth Saturdays of every month were declared public holidays for Public Sector Banks in 2015, while the remaining Saturdays continue to provide an opportunity for customers to access banking services.
Public Sector Banks have a significant role in financial inclusion, digital banking, financial literacy and rural outreach, particularly in extending formal financial services to underserved sections of society.
The Government has said that continued functioning of banking services is important for citizens, businesses and the wider economy and has urged employees and unions to refrain from strike action and pursue the remaining issues through constructive dialogue.
The Government maintains that while several employee concerns have already been addressed, the outstanding demand for a five-day banking week continues to be examined through the established process of engagement.