Bank Strike Deferred: IBA and UFBU Agree to Committee on 5-Day Banking Week; Check Details

The proposed three-day nationwide bank strike from September 28 to September 30, 2026, has been deferred after the Indian Banks’ Association (IBA) and the United Forum of Bank Unions (UFBU) reached an understanding following a late-night meeting on Sunday.

The meeting between the IBA and UFBU was held at 9:30 PM on September 27, just hours before the proposed strike was due to begin. Following the discussions, the UFBU decided to defer the planned strike and other agitation programmes.

What Was Decided in the IBA-UFBU Meeting?

One of the key decisions was to establish a high-level committee comprising representatives of the IBA and UFBU.

The committee will examine the long-pending demand to declare the remaining Saturdays as holidays for bank employees, effectively taking forward discussions around a five-day banking week.

According to the UFBU, the committee will consider possible alternatives, consult relevant stakeholders and work towards a solution acceptable to all stakeholders, including bank customers.

However, the decision does not mean that all Saturdays have been declared bank holidays. The demand will now be examined by the committee.

At present, banks observe holidays on the second and fourth Saturdays of each month, apart from Sundays and other notified holidays.

What Happened to the September 28-30 Bank Strike?

The UFBU had called the three-day nationwide strike beginning September 28 over several pending demands, with the five-day banking week being one of the major issues.

Following the IBA's assurances and the late-night discussions, the UFBU agreed to defer the proposed strike and other agitation programmes.

As a result, banking operations are expected to continue normally during the September 28-30 period, subject to individual bank and branch arrangements.

What Was Decided on the PLI Scheme?

The meeting also addressed the Performance Linked Incentive (PLI) scheme for officers in Scale IV and above.

According to the UFBU, discussions can begin with the IBA regarding possible modifications to the PLI scheme. The objective is to address concerns raised by the unions and associations before a modified proposal is taken up with the government.

This means the PLI scheme has not been finally changed. Instead, the two sides have agreed to start discussions on modifications.

What About Other Pending Bank Employees' Demands?

The IBA and UFBU will also discuss the residual issues listed in the minutes of their March 8, 2024 discussions.

The union body said the parties would take up these matters with the aim of reaching an early resolution.

Bank unions have been raising several issues in addition to the five-day banking week, including pension-related matters and other pending service and wage-related concerns.

Is the 5-Day Banking Week Confirmed?

No.

The latest agreement only provides for a high-level committee to examine the demand for declaring the remaining Saturdays as holidays.

Therefore, headlines claiming that the government or IBA has already approved a five-day banking week would be premature. The issue will now move into further discussions between the IBA, UFBU and other stakeholders.

What Happens Next?

The immediate focus will be on the newly proposed IBA-UFBU high-level committee and its discussions on Saturday holidays.

The two sides will also begin talks on the PLI scheme for senior officers and work through the remaining issues identified in their earlier proceedings.

For bank customers, the immediate outcome is that the proposed three-day nationwide strike from September 28 to 30 has been deferred, avoiding the disruption that had been expected from the planned industrial action.