Bank Unions Calls for Strike to Force Action on Saturday Holidays

Banking services across India are expected to face significant disruptions as major bank unions have called for a nationwide strike on January 27.

The strike is being organized to demand the long-awaited implementation of a five-day work week, a proposal that has remained in limbo despite previous agreements between unions and the Indian Banks’ Association (IBA).

Bank Unions Core Demand: 100% Five-Day Banking

The United Forum of Bank Unions (UFBU), an umbrella body representing several key employee and officer unions, announced the strike following a lack of progress in formalizing the shift to a five-day week.

Currently, bank employees work on the first and third Saturdays of the month, with the second and fourth Saturdays designated as holidays.

Unions are demanding that all Saturdays be declared holidays, a move they argue will improve work-life balance and bring the banking sector in line with other financial services and central government offices.

Negotiation Stalemate

The IBA and bank unions reached a memorandum of understanding regarding the five-day work week during the 12th Bipartite Settlement.

However, the final notification from the Union Finance Ministry is still pending.

The government has reportedly been evaluating the impact of such a move on public convenience and the economy.

This is particularly true for rural areas where digital banking penetration is lower.

Unions contend that the implementation is overdue. They have already agreed to extend daily working hours by 40 minutes to compensate for the lost Saturday shifts.

Impact on Services

The strike is likely to paralyze physical banking operations if it proceeds. This includes cheque clearing, cash deposits and withdrawals, and loan processing.

Digital channels like UPI, IMPS, and Net Banking are expected to remain operational.

However, ATM services may face cash shortages if the strike extends or leads into a weekend.

Private sector banks may remain partially operational. However, the absence of public sector bank participation could hinder their clearing house functions.

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