Bank Strike Alert: Banks to remain closed on September 11! Employees adamant on demand for a 5-day work week..
A major administrative and operational crisis has once again emerged in the Indian banking sector. Responding to a call by the United Forum of Bank Unions (UFBU), approximately one million officers and employees from public sector, private sector, and regional rural banks (RRBs) have formally announced a one-day nationwide strike on September 11, 2026. According to reports, the primary reason for this nationwide protest is the failure to implement the long-pending notification declaring all Saturdays as official holidays (a 5-day work week).
Although an agreement was reached between the Indian Banks' Association (IBA) and bank unions under the 12th Bipartite Wage Settlement to declare all Saturdays as holidays—with employees agreeing to work an extra 40 minutes daily—there is immense resentment among the staff due to the delay by the Ministry of Finance and the Reserve Bank of India (RBI) in issuing the gazette notification. The strike scheduled for September 11 could severely disrupt traditional banking services across the country, including cheque clearing, branch cash deposits and withdrawals, trade finance, and loan disbursements.
Who is part of the UFBU?
The UFBU—which represents major bank unions such as the All India Bank Employees Association (AIBEA), All India Bank Officers Confederation (AIBOC), National Confederation of Bank Employees (NCBE), All India Bank Officers Association (AIBOA), Bank Employees Federation of India (BEFI), Indian National Bank Employees Federation (INBEF), and Indian National Bank Officers Congress (INBOC)—has urged the government to implement a five-day banking week.
In a statement issued in late August, the UFBU noted, "We are aware that, at the request of bank management, suggestions were made to redistribute the extra working hours across the remaining days of the week." This proposal, submitted in 2024, is still awaiting a decision from the government. The government has failed to honor the 2020 agreement, which stipulated a uniform incentive based on the bank's overall performance—ranging from 5 to 15 days' salary depending on profitability. Instead, the government has introduced a modified and discriminatory scheme based on individual employee performance, creating a divide among the staff.
**UFBU Posts on X**
In a letter posted on its X account, the UFBU stated that the September 11 strike is the first in a series of nationwide strikes. Bank unions have also announced a three-day strike for September 28, 29, and 30, warning that if their demands are not met, they will launch an indefinite nationwide strike starting October 26. Amidst these proposed strikes, reports indicate that the central government has halted Performance-Linked Incentive (PLI) payments for public sector bank officers for the 2025-26 financial year.
According to a Livemint report, the Department of Financial Services (DFS) stated in a letter that PLI payments for public sector bank officers in Scales IV through VIII would be suspended until further notice. The report further notes that this issue will be discussed during the ongoing negotiations for the 13th Bipartite Settlement/10th Joint Note. These discussions cover future wage revisions and service conditions for public sector bank employees and officers.
**Why is the 5-Day Work Week Stalled?**
**Approval from IBA:** In the 12th Bipartite Wage Settlement signed in March 2024, the IBA and nine major unions—including the All India Bank Officers' Confederation (AIBOC)—had agreed to a five-day work week. Awaiting Notification: As per the agreement, the official gazette notification is yet to be issued by the government and the RBI. Unions allege that the file remains buried in administrative red tape despite more than two years having passed.
Adjustment in Working Hours: Employees are demanding a 40-minute increase in daily working hours from Monday to Friday (9:45 AM to 5:30 PM) to compensate for the Saturday off within a five-day work week.
No Impact on Productivity: Unions argue that since total weekly working hours will remain unchanged, there will be no adverse effect on customer services or banking productivity.
Digital Platforms to Remain Operational: UPI, net banking, mobile apps, and ATMs will continue to function smoothly during the September 11 strike.
Impact on Physical Operations: The closure of cheque clearing houses, the stalling of government treasury operations, and the non-processing of commercial loan documents will directly impact the working capital of the MSME and corporate sectors.
Mental Stress and Burnout: Employees in both public and private sector banks face immense pressure regarding the implementation of government schemes (such as PM Mudra and Jan Dhan) and stringent sales targets.
Comparison with IT and Corporate Sectors: A five-day work week is already in place in the IT sector, multinational companies, and other financial institutions. Bank employees view this as a fundamental right and essential for maintaining a healthy work-life balance.
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