The proposed three-day nationwide bank strike scheduled for September 28 to 30 has been deferred after discussions between the Indian Banks’ Association (IBA) and the United Forum of Bank Unions (UFBU). The decision was announced by the UFBU following a meeting with the IBA on September 27 at 9:30 PM.
The development means the planned strike will not go ahead as scheduled, providing relief to customers who could otherwise have faced disruption in branch banking services.
The key issue discussed during the meeting was the long-standing demand for a five-day banking week. The two sides agreed to immediately constitute a high-level committee to examine the demand. The UFBU has also deferred its other proposed agitation activities for the time being.
Will Banks Be Closed Every Saturday?
The deferment of the strike does not mean that banks will immediately shift to a five-day working week.
At present, bank branches remain closed on the second and fourth Saturdays of each month, while they generally operate on the other Saturdays. The newly proposed committee will examine the demand to declare the remaining Saturdays as holidays.
According to the UFBU circular, the committee comprising representatives of the IBA and UFBU will discuss the demand and explore a solution acceptable to all stakeholders and customers.
Has the Government Approved a Five-Day Banking Week?
A five-day banking week has not been implemented yet. Government sources have also said that the Ministry of Finance has not made a commitment on the proposal.
The government had earlier stated that the five-day banking demand remained under consideration. The Finance Ministry has separately said that the Performance Linked Incentive (PLI) scheme, another issue raised by unions, was being kept in abeyance.
Therefore, the latest agreement between the IBA and UFBU should be viewed as a move to continue discussions rather than an immediate approval of five-day banking.
Other Issues to Be Discussed
The UFBU circular also mentions other matters that will be taken up during further discussions.
The IBA is expected to propose amendments to the government concerning the PLI scheme for Scale IV officers and above in response to concerns raised by the unions. The remaining issues referred to in the minutes dated March 8, 2024, will also be discussed with the aim of resolving them at the earliest.
For now, the proposed September 28–30 bank strike has been deferred, while discussions on the five-day banking week and other pending issues are set to continue.
Disclaimer: This article is based on information available from the IBA, UFBU and government-related sources regarding the proposed bank strike and five-day banking week discussions. The final status of any policy change will depend on subsequent discussions and official decisions.