Bank Strike Deferred After IBA-UFBU Talks; Five-Day Week Demand Pending

India’s United Forum of Bank Unions (UFBU) deferred a three-day nationwide strike on September 27 after late-night talks with the Indian Banks’ Association (IBA). The unions had planned to strike September 28 to 30 over demands for a five-day banking week, withdrawal of the Performance Linked Incentive (PLI) scheme, and resolution of pending issues. The strike was not cancelled, only postponed, leaving the threat of an indefinite strike from October 26 if demands remain unmet.

Why the strike was deferred

The UFBU announced the deferral after a 9:30 pm meeting with the IBA on September 27. Both sides agreed to form a high-level joint committee to examine the unions’ key demands. The IBA also committed to initiating discussions on modifying the PLI scheme for Scale IV and above officers and to resolve pending issues recorded in March 8, 2024 meeting minutes. The unions agreed to postpone agitational programs based on this progress, though the strike threat remains active.

The five-day work week demand

Bank employees currently work six days a week. The unions have sought to implement a five-day banking week with all Saturdays declared bank holidays. In 2024, employees proposed increasing daily working hours by 40 minutes to keep total weekly hours unchanged. The unions argue that several government and financial institutions already follow a five-day week. The joint committee will now examine this demand and explore alternatives acceptable to stakeholders and customers.

The PLI scheme dispute

The Performance Linked Incentive scheme was implemented unilaterally by the Department of Financial Services, according to union leaders. The UFBU demanded the scheme be kept in abeyance and sought bilateral modification of the framework. The IBA has agreed to propose modifications to the government to address observations raised by unions. Discussions will focus specifically on changes for Scale IV and above officers.

The October 26 deadline looms

The UFBU has threatened to launch an indefinite strike from October 26, 2026, if its demands are not met. The deferral gives both sides time to negotiate through the joint committee. Bank employees and officers have been seeking implementation of commitments made in their agreement for more than two and a half years, according to UFBU leaders. The next phase of talks will determine whether the October strike proceeds.

Final Thoughts

India’s bank unions have bought time through negotiation but retained the strike threat. Investors and depositors should monitor the October 26 deadline closely, as an indefinite strike would disrupt banking services nationwide. The joint committee’s progress in the coming weeks will signal whether a resolution is likely.

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