28 September 2026 Punjab Khabarnama Bureau : Bank unions have deferred their proposed three-day nationwide strike scheduled for September 28 to 30 after the United Forum of Bank Unions (UFBU) reached an understanding with the Indian Banks’ Association (IBA) following late-night talks on Sunday.
The development means the planned nationwide banking disruption will not take place for now. The decision came after an IBA-UFBU meeting that began at around 9:30 pm on September 27, just hours before the strike was due to start.
High-Level Committee on Five-Day Banking
A key point in the understanding is the formation of a high-level committee comprising representatives of the IBA and UFBU to examine the long-pending demand for a five-day banking week.
The committee will consider the demand to declare the remaining Saturdays as holidays, explore possible alternatives and consult stakeholders, including customers, before working towards a solution.
Bank unions have been seeking a system under which banks would operate from Monday to Friday, with all Saturdays declared holidays. At present, bank holidays generally include the second and fourth Saturdays along with Sundays.
Strike Was Planned From September 28 to 30
The UFBU had announced the three-day strike after a one-day nationwide strike earlier in September failed to resolve the unions’ outstanding demands.
The proposed September 28-30 action was particularly significant because September 30 marks the half-yearly closing of banks, involving important activities such as reconciliation, provisioning, treasury operations and market-related work.
The government had earlier warned that the combination of the strike with the preceding weekend could have caused several days of disruption to banking services.
PLI Scheme Also Comes Under Discussion
The understanding between the two sides also covers the Performance Linked Incentive (PLI) scheme for Scale IV and above officers.
According to the UFBU, discussions can begin with the IBA proposing modifications to the government to address observations and concerns raised by unions and associations.
The two sides also agreed to discuss other pending issues listed in the minutes of their March 8, 2024 meeting, with the aim of resolving them as soon as possible.
Government Had Already Kept PLI Scheme in Abeyance
The proposed strike came after the government had already taken action on one of the unions’ major concerns.
The Finance Ministry said it had decided to keep the revised PLI scheme in abeyance after considering concerns raised by bank unions. The government said the five-day banking week remained under examination and that discussions were continuing on outstanding issues.
What Were Bank Unions Demanding?
The principal demand behind the agitation was the implementation of a five-day banking week.
Other demands raised by the unions have included issues related to pension benefits, a uniform dearness allowance formula for pensioners and an option for employees covered under the National Pension System (NPS) to shift to the Old Pension Scheme.
The UFBU has been pressing for progress on these issues through negotiations with the IBA and government authorities.
Banks Expected to Operate Normally
With the strike deferred, bank branches are expected to operate normally during the period that had been earmarked for the strike.
Customers therefore do not face the planned nationwide closure of branches from September 28 to 30. Digital banking services, ATMs and other banking channels are also expected to continue operating under normal arrangements, subject to individual bank notifications.
Private-sector banks such as HDFC Bank, ICICI Bank, Axis Bank and IndusInd Bank were not participating in the proposed UFBU strike in the first place.
Government Had Made Special Arrangements
Before the strike was deferred, the government had taken steps to reduce the impact of a possible banking shutdown.
The Finance Ministry had directed public sector banks and regional rural banks to function normally on Sunday, September 27, while the Reserve Bank of India approved the operation of bank branches, offices, ATM-linked branches and currency chests on that day.
These arrangements were intended to prevent an extended interruption because September 26 and 27 were the preceding weekend holidays.
Strike Deferred, Not Permanently Cancelled
The latest development represents a deferment rather than a final settlement of the unions’ demands.
The UFBU statement said the proposed agitation and strike actions would be deferred following the understanding with the IBA. However, the underlying issues remain subject to further discussions.
The formation of the committee means negotiations over five-day banking will continue rather than the demand being immediately approved.
Possible Future Agitation Remains
Before the latest understanding, the UFBU had also warned of further industrial action if its demands remained unresolved.
The union forum had proposed an indefinite nationwide strike from October 26 as part of its earlier agitation programme. The latest deferment could therefore provide additional time for negotiations, although the possibility of future action would depend on the outcome of discussions between the unions, IBA and government.
What Customers Need to Know
For bank customers, the immediate impact is straightforward: the proposed three-day strike from September 28 to 30 has been deferred, so the anticipated disruption to branch services will not occur as planned.
However, the five-day banking week has not yet been approved. The new committee will examine the demand and work towards a possible solution after consulting relevant stakeholders.
The next phase will therefore focus on negotiations rather than industrial action, with the outcome of the committee’s discussions likely to determine the unions’ future course.