India’s public sector banks are bracing for a fresh round of disruption today, with the United Forum of Bank Unions (UFBU) confirming a nationwide strike on January 27 to press for the immediate implementation of a five-day work week.
Coming after a weekend and the Republic Day holiday, the strike is set to affect branch-level services for three consecutive days, raising concerns for millions of customers who rely on physical banking.
The UFBU, an umbrella body of nine unions representing officers and employees, took the decision after a conciliation meeting with the chief labour commissioner on January 23 failed to produce a breakthrough.
With January 25 being a Sunday and January 26 a public holiday, the industrial action on Tuesday effectively creates a long interruption in routine banking operations.
Why Bank Unions Are Striking Now
At the heart of the agitation is a long-pending demand: the declaration of all Saturdays as holidays. According to the unions, this was a key element agreed upon during the 12th Bipartite Settlement signed with the Indian Banks’ Association (IBA) in March 2024, but the proposal is still awaiting government notification.
Despite what union leaders describe as detailed discussions during conciliation, there was no firm assurance from the authorities. “Despite detailed discussions during the conciliation proceedings, there was no assurance on our demand. Hence, we have been compelled to proceed with the strike action,” said C H Venkatachalam, General Secretary of the All India Bank Employees Association (AIBEA), a constituent of UFBU.
The All India Bank Officers’ Confederation (AIBOC) has reiterated that the move to a five-day week would not reduce productivity. Rupam Roy, General Secretary of AIBOC, said the decision to declare all Saturdays as holidays had already been agreed between the IBA and UFBU during the wage revision settlement in March 2024.
“It is unfortunate that the government is not responding to our genuine demand. There would be no loss of man-hours as we have agreed to work an extra 40 minutes daily from Monday to Friday,” Roy said.
‘Not Against Customers, But for Sustainable Banking’
Union leaders have sought to underline that the strike is not aimed at inconveniencing customers, but at improving the long-term health of the banking system.
The unions argue that shorter work weeks, already common in several sectors, help reduce burnout in an industry that has seen rising workloads due to digitisation, compliance requirements and staff shortages.
Which Banks Will Be Hit
The strike is expected to affect branches of public sector banks across the country, including major lenders such as State Bank of India (SBI), Punjab National Bank (PNB) and Bank of Baroda. Services that depend on physical branch presence are likely to be disrupted.
These include cash deposits and withdrawals, cheque clearances, account opening and documentation, and routine administrative work.
Several public sector banks have already alerted investors to the potential impact. In a regulatory filing, SBI said, “We advise that while the bank has made necessary arrangements to ensure normal functioning in its branches and offices on the day of strike, it is likely that work in the bank may be impacted by the strike.”
Private Banks, Digital Channels Largely Unaffected
Customers of large private sector banks may face fewer disruptions. Employees of lenders such as HDFC Bank, ICICI Bank and Axis Bank are not part of the unions participating in the strike, and branch operations at these banks are expected to remain largely normal.
Digital banking services will also continue to function. Platforms such as UPI, mobile banking and internet banking are not expected to be affected. However, unions and bank officials have cautioned that ATM cash availability could face localised issues due to logistical delays in cash replenishment.
Why Three Days Matter for Customers
The timing of the strike has amplified its impact. With banks already closed on January 25 (Sunday) and January 26 (Republic Day), the January 27 strike means customers face three days without normal branch access.
For pensioners, small businesses and rural customers who depend heavily on over-the-counter services, this could translate into delayed payments, postponed cheque clearances and difficulties in accessing cash.
The Five-Day Week Debate
Currently, banks operate on the first, third and fifth Saturdays of every month, remaining closed on the second and fourth Saturdays. The unions want this to change to a uniform five-day work week, aligning banks with most government offices and corporate workplaces.
Supporters of the move say it will improve efficiency, reduce errors caused by fatigue and help banks attract younger talent. Critics, however, worry that fewer working days could affect service delivery in a country where many still depend on physical banking.
