Bank strike deferred as committee agrees to examine five-day working week for lenders

29 September, 2026
Bank strike deferred as committee agrees to examine five-day working week for lenders

Winning Bizness Desk

Mumbai.Bank strike deferred as committee agrees to examine five-day working week for lenders

Banks across India will remain open as usual this week after the United Forum of Bank Unions (UFBU) deferred its three-day nationwide strike scheduled from September 28 to 30.

The decision followed a meeting between bank unions and the Indian Banks’ Association (IBA) late Sunday night. The IBA agreed to form a committee to examine the demand for a five-day working week and assured unions that other pending issues would also be discussed.

With the strike deferred, banks will remain open for five days this week and will be closed only on October 2 for Gandhi Jayanti.

Committee to examine two-day weekly holidays

A special committee will be formed to consider the demand for holidays on the first and third Saturdays, effectively giving bank employees two days off every week.

The committee will include representatives of bank management and unions. It will hold discussions with all stakeholders and examine a framework that provides employees greater convenience without disrupting banking services for customers.

As part of the proposal, employees have offered to work an additional 40 minutes every day from Monday to Friday in return for a five-day working week.

Sunday banking followed government directions

Banks had remained open for customers on Sunday following directions from the Finance Ministry amid the proposed strike.

This was the first time in 10 years that banks had opened on a Sunday for such a purpose. The previous instance was in November 2016, when banks operated on a Sunday following the demonetisation of old Rs 500 and Rs 1,000 notes.

At that time, customers had queued outside branches to exchange, deposit and withdraw cash after the withdrawal of the two denominations.

ATM withdrawals will follow regular charges

With the strike deferred, the earlier decision by public sector banks to waive charges after customers crossed their monthly free ATM withdrawal limit from September 28 to 30 is also set to lapse.

No official statement on the matter has been issued so far. Under Reserve Bank of India rules, customers can make five free cash withdrawals each month from their own bank's ATM. The free transaction limit at other banks' ATMs is three transactions a month in metro cities and five in non-metro locations.

Customers face Rs 23 charge beyond limits

Customers exceeding their monthly free ATM transaction limit are charged Rs 23 plus GST for each additional transaction. Banks also pay interchange fees to one another when customers use another bank's ATM. The fee is Rs 19 for cash withdrawals and Rs 7 for balance enquiries. These charges are separate from the customer's applicable ATM transaction charges.

Senior officers’ incentive issues also discussed

The meeting also covered concerns related to the performance-linked incentive (PLI) scheme for senior bank officers. The IBA has agreed to address complaints and shortcomings linked to the incentive system. The discussions are part of the broader effort to resolve issues raised by employees and officers along with the five-day working demand.

Pending demands from 2024 return to talks

The two sides also agreed to reopen discussions on pending demands and commitments arising from the settlement reached in March 2024. The unions have sought early resolution of the remaining issues. The fresh discussions are expected to cover matters that were not settled earlier. Key points agreed during the latest discussions include:

  • A committee on five-day banking will be formed.
  • Bank management and union representatives will be part of it.
  • The proposed arrangement includes longer working hours from Monday to Friday.
  • Pending issues from the March 2024 settlement will be discussed again.
  • Concerns over performance-linked incentives for senior officers will be addressed.

Seven major unions backed nationwide strike call

The proposed three-day strike had the support of seven major bank unions, representing more than 90% of bank employees.

The unions involved were 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).

The deferment means regular banking services will continue across the country this week, with the next scheduled nationwide holiday for banks being October 2 on account of Gandhi Jayanti.