Government sources have refuted claims made by bank employee unions that the Finance Ministry pledged to introduce a five‑day work week for banks. The denial comes as the United Forum of Bank Unions (UFBU) announced a three‑day strike slated for September 28‑30, 2026, to press for that and other demands.
Union demands and strike schedule
The UFBU, which says it represents roughly 90 % of the banking workforce, outlined a set of demands in a statement released ahead of the planned industrial action. Central to the list is the adoption of a five‑day banking week, replacing the current six‑day schedule. Unions also seek a revision of family pensions for bank retirees, a uniform dearness allowance formula for all pensioners, and an option for employees covered under the National Pension System (NPS) to switch back to the older pension scheme (OPS). Additional demands include updating and improving pension benefits and addressing the withdrawal of the Performance Linked Incentive (PLI) scheme, which the government has reportedly kept in abeyance.
The strike, if it proceeds, will coincide with the banking sector’s half‑yearly close, a period traditionally marked by heightened transaction volumes and settlement activity. To mitigate disruption, the government has already instructed public sector banks to remain open on Sunday, September 27, the day before the strike is set to begin.
Government response and preparatory measures
In a separate memorandum issued by the Controller General of Accounts under the Finance Ministry, the central government announced that salaries, wages and pensions for all central government employees for September 2026 would be disbursed early, on Friday, September 25. The advance payment applies to industrial employees of the central government as well as pensioners, with the aim of ensuring that financial obligations are met before the strike period.
Specifically, the memorandum states that September salaries for central government employees may be drawn and disbursed on September 25, and that the same date applies to pension payments by banks and Public Accounts Offices (PAOs). The advance disbursement measure reflects the government’s effort to cushion the impact of the strike on both employees and beneficiaries.
Earlier in the week, the Finance Ministry appealed directly to bank employees, urging them to refrain from resorting to strikes and to resolve outstanding issues through dialogue. The ministry asserted that most concerns raised by the unions have been “substantially addressed,” though it stopped short of confirming any commitment to a five‑day work week.
Background on the five‑day work week proposal
Union representatives have claimed that the Indian Banks’ Association (IBA) agreed to the five‑day work week proposal as part of the 12th Bipartite Settlement/9th Joint Note signed on March 8, 2024. That agreement reportedly included an increase of 40 minutes to working hours from Monday to Friday, with the proposal subsequently recommended to the government for consideration. However, government sources have indicated that no formal commitment has been made by the Finance Ministry on the matter.
In addition to the five‑day work week, unions say that several pending issues have been resolved, including a revision in family pensions for bank retirees and the introduction of a pension option for employees who resign. Conversely, the demand to withdraw the Performance Linked Incentive (PLI) scheme remains pending, with the government keeping the issue “in abeyance.”
The combination of these demands, the timing of the strike during a critical financial closing period, and the government’s pre‑emptive steps to keep banks open on a Sunday and to advance salary payments underscore the high stakes for both the banking sector and the broader economy.
Stakeholders, including bank customers, employees, and the wider public sector, will be watching closely to see whether the strike materialises and how the government and unions navigate the unresolved issues. The outcome could set precedents for labor‑management relations in the Indian banking industry and influence future policy decisions regarding work‑hour structures and employee benefits.
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