Proposed work boycott from Monday to Wednesday (September 28–30) postponed; bank branches to function normally from today
Late-night settlement reached between IBA and UFBU; committee to examine 5-day working and PLI issues
All government banks were opened on Sunday after 10 years in anticipation of the strike
New Delhi: The three-day nationwide bank strike scheduled from Monday, September 28, 2026, over the demand for a five-day working week and changes in Performance Linked Incentive (PLI) rules has been postponed. During a marathon meeting held late Sunday night between the Indian Banks’ Association (IBA) and the United Forum of Bank Unions (UFBU), an agreement was reached to constitute a high-level committee to examine the employees’ demands. Following the agreement, the unions decided to defer the proposed strike scheduled for September 28, 29 and 30.
The postponement of the strike has brought major relief to millions of bank customers and businesses across the country. From Monday, cheque clearing, cash transactions, drafts and other counter services at public and private sector banks are expected to operate normally.
Late-Night Settlement: Why Was the Strike Postponed and What Was Decided?
Agreement reached during the meeting: A meeting was held at around 9:30 p.m. on Sunday between senior representatives of the IBA, the organisation representing bank management, and the UFBU, the joint platform of bank employees’ unions.
Formation of a committee: Employee organisations had demanded a definite timeline for declaring all Saturdays as holidays under the five-day working system. During the talks, both sides agreed to constitute a special committee to work out a framework for resolving the issue.
Proposal on PLI: Unions had opposed the incentive provision for senior officers (Scale IV and above), under which the incentive is linked to an amount equivalent to 365 days of basic pay. The IBA assured the unions that it would take their concerns into consideration and place a revised proposal before the government.
6 Key Questions and Answers About the Strike and Its Impact
1. Why was the strike called?
Bank unions were demanding a Monday-to-Friday working system, with Saturdays and Sundays as weekly holidays, along with removal of discrepancies in PLI bonuses and resolution of pending issues related to service conditions.
2. Which organisations were involved in the talks?
The negotiations took place between the Indian Banks’ Association (IBA), representing bank management, and the United Forum of Bank Unions (UFBU), a joint platform of seven major bank unions.
3. Was the government directly involved in the talks?
According to the circular, the Central government was not directly involved in the negotiations. However, the committee’s recommendations and the final proposal on PLI modifications will be forwarded by the IBA to the Ministry of Finance.
4. Has five-day banking been implemented?
No. For now, the two sides have only agreed to constitute a committee to work towards resolving the demand. A permanent decision on Saturday holidays will be taken only after the committee submits its report and the government grants formal approval.
5. What relief do customers get from the postponement?
Banking operations at branches will continue normally. Had the strike gone ahead, cheque clearing, RTGS/NEFT branch services, cash transactions and business credit-related activities could have been disrupted for three consecutive days.
6. How many employees were expected to participate in the strike?
Around 7.5 lakh employees associated with 12 public sector banks and seven major unions — AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBEF and INBOC — were expected to participate in the nationwide agitation. This represented more than 90 per cent of the workforce, according to the information provided.
Banks Opened on Sunday After 10 Years Amid Strike Threat
In view of the advance notice of the strike, public sector banks across the country were opened for normal operations on Sunday, September 27, following directions from the Ministry of Finance, to minimise inconvenience to the public.
The move to open bank branches on a Sunday was described as a rare step taken after a gap of 10 years. The last such instance was in November 2016, during the demonetisation exercise, when banks remained open on Sundays to facilitate the deposit of old Rs 500 and Rs 1,000 notes and manage the rush.
Although the postponement of the strike was announced late Sunday night, banks had already conducted their operations normally throughout the day.
