‘This strike is forced on us’: Bank services hit as unions demand 5-day workweek

Nationwide Bank Strike Disrupts Branch Services as Unions Press for Five-Day Week

Theindiapostdaily.com – Customers of public sector banks faced disruptions on Friday after bank employees and officers joined a nationwide strike called by the United Forum of Bank Unions (UFBU). The protest focused on the immediate introduction of a five-day workweek, along with action on unresolved wage and pension-related matters.

While digital channels remained operational, many physical branches either shut entirely or functioned with reduced staff. The impact was concentrated in public sector banks, with private sector banks generally continuing normal operations.

Branch Transactions Affected

Routine counter-based work was among the services most affected during the strike. Customers seeking to deposit or withdraw cash, submit cheques for clearing, or complete branch-level administrative tasks encountered delays or closures at many public sector bank locations. Some older private banks also saw an impact.

Online and mobile banking, including UPI transactions and internet banking, continued to be available. This meant customers could still make many payments, transfer funds and access account services digitally, even where a local branch was not fully functioning.

Several public sector lenders had alerted customers in advance that branch operations could be affected. State Bank of India said it had arranged for branches and offices to function as normally as possible, while cautioning that strike participation could still affect banking work.

Union Body Represents Most Bank Staff

The UFBU brings together seven bank unions and represents roughly 90 per cent of officers and employees in the banking sector. Its strike call followed the unions’ dissatisfaction with the lack of progress on their demands.

“Since there was no positive outcome and the government did not agree to our demand, this strike is forced on us. Bank employees and officers are highly aggrieved that they alone are being discriminated against,” All India Bank Employees Association general secretary C H Venkatachalam said.

The unions argue that bank employees should receive the same benefit of a five-day working schedule already available in several other parts of the financial system. Under the current arrangement, banks operate on the first, third and fifth Saturdays of each month, while the second and fourth Saturdays are holidays.

Why the Saturday Holiday Demand Matters

The central issue is a proposal to make every Saturday a bank holiday. The unions say this was accepted as part of the 12th Bipartite Settlement signed with the Indian Banks’ Association in March 2024. However, the arrangement has not yet been put into effect because the required government notification is still pending.

A full five-day week would alter branch availability for customers, but it would not necessarily mean a reduction in total working hours. The proposal has been linked to changes in daily banking hours, with the aim of restructuring the work schedule rather than simply reducing work time. Until an official notification is issued, the existing Saturday schedule remains in place.

For customers, the issue highlights the growing importance of digital access. Physical branches remain essential for many services, particularly cash transactions, document submissions, account-related requests and assistance for people who do not regularly use online banking. At the same time, UPI, mobile applications, internet banking and ATMs provide alternatives for a large share of everyday transactions when branch operations are disrupted.

Pension and Wage Issues Also Remain Pending

Alongside the demand for Saturdays to be declared holidays, unions have sought improvements to pension provisions. Their demands include updating pension benefits and introducing a common dearness allowance formula for all pensioners.

They have also called for employees covered by the National Pension System to be given the option of moving to the Old Pension Scheme. The distinction is significant for affected employees because the two systems operate under different benefit structures and funding arrangements.

The strike therefore reflected a wider set of concerns than working days alone. Union representatives have maintained that the unresolved matters involve service conditions, retirement security and compensation-related issues that require a decision from the government.

What Customers Could Do During the Disruption

Customers with urgent banking needs could use UPI, internet banking, mobile banking and ATMs where available. Digital transfers and bill payments were not affected by the branch closures. However, tasks requiring physical verification, paper instruments or in-person support could be delayed until normal operations resumed.

Cheque-related work was particularly vulnerable to disruption because clearing and related branch processes depend on staff availability. Customers with time-sensitive deposits, withdrawals or document-based requests were likely to need to check directly with their bank branch once services returned to normal.

The strike underscored the continuing role of branch employees in India’s banking system even as digital transactions expand. For the unions, the action was intended to draw attention to the pending five-day-week notification and other demands that have yet to receive a final resolution.