Bank unions call strike on Sept 11 over five-day banking, PLI scheme
Synopsis
India's largest bank union coalition has drawn a battle line: a one-day strike on 11 September, a three-day walkout from 28 September, and an indefinite stoppage from 26 October — unless the government acts on five-day banking, a disputed PLI structure that could pay senior officers up to 365 days' basic pay versus just 15 days for junior staff, and long-pending pension reforms.
Key Takeaways
The United Forum of Bank Unions (UFBU) has called a nationwide strike on 11 September over five-day banking delays, PLI disputes, and pension demands.
A three-day strike from 28 September and an indefinite strike from 26 October have also been threatened if demands go unmet.
The five-day banking proposal, agreed under the 12th Bipartite Settlement signed on 8 March 2024 , has been pending government approval for more than two years .
Under the government's PLI scheme, officers in Scale IV and above can earn up to 365 days' basic pay , while workmen and officers up to Scale III are capped at 15 days' basic pay plus DA .
Other demands include pension updation , a uniform DA formula for pensioners, and an NPS-to-old pension scheme switchover option.
The 11 September strike falls on a Friday before two bank holidays, potentially extending disruption through the Ganesh Chaturthi weekend.
The United Forum of Bank Unions (UFBU) on Monday, 24 August announced a nationwide strike on 11 September, citing the government's prolonged delay in implementing five-day banking, disagreements over the performance-linked incentive (PLI) scheme, and a clutch of unresolved demands including pension-related issues. The decision, taken at a meeting on Sunday, signals a sharp escalation in the standoff between bank employees and the government.
Strike Dates and Escalation Plan
The UFBU — an umbrella body representing nine bank employees' and officers' unions — has laid out a phased protest strategy. Beyond the 11 September walkout, it has threatened a three-day nationwide strike from 28 September, timed to coincide with the banking sector's half-yearly closure. If demands remain unaddressed, the forum has further resolved to launch an indefinite strike from 26 October.
The timing of the 11 September strike adds to its potential impact: the day falls on a Friday, followed by two bank holidays, and 14 September is also a holiday in several states on account of Ganesh Chaturthi — effectively stretching the disruption across a long weekend for many customers.
The Five-Day Banking Dispute
At the heart of the unions' grievance is the five-day banking proposal, which the Indian Banks' Association (IBA) had agreed to as part of the 12th Bipartite Settlement / 9th Joint Note signed on 8 March 2024. Under the proposal, working hours on Monday to Friday would increase by 40 minutes to compensate for the removal of Saturday working. The IBA subsequently forwarded the recommendation to the government, but the proposal has reportedly remained pending for more than two years with no formal approval.
Disagreement Over PLI Scheme
The unions have also taken strong exception to the government's PLI structure for bank officers. Under the government's scheme, officers in Scale IV and above would be eligible for PLI of up to 365 days of basic pay, linked to individual performance. In contrast, workmen employees and officers up to Scale III would receive a maximum of 15 days' basic pay plus dearness allowance.
The UFBU argues this structure deviates from the understanding reached with the IBA, which envisaged linking incentives to the overall performance of individual banks and maintaining uniformity across cadres. Critics within the unions contend the current design creates a two-tier system that disproportionately benefits senior officers.
Pension and Other Pending Demands
Several long-standing demands remain unresolved, according to the UFBU. These include pension updation for retired employees, a uniform dearness allowance formula for pensioners, and an option for employees covered under the National Pension System (NPS) to switch to the old pension scheme. The forum characterised the government's stance on these issues as reflecting a 'negative attitude' toward major demands.
Impact on Banking Services
If the strike proceeds as planned, banking services — particularly at public sector banks — are expected to face disruption across parts of the country. Customers are advised to plan transactions ahead of the affected dates. The escalating protest timeline, stretching potentially to an indefinite strike from 26 October, raises the prospect of sustained service disruptions heading into the festive season.
Point of View
Three days, indefinite — is a calibrated pressure campaign, not a spontaneous outburst. The five-day banking proposal has sat with the government for over two years after the IBA itself signed off on it, which makes the delay harder to defend on procedural grounds. The PLI dispute is structurally more revealing: a 365-day cap for Scale IV officers versus 15 days for junior staff is not a minor calibration — it is a design that concentrates gains at the top, and the unions are right to flag it as a departure from the uniformity principle agreed with the IBA. With the festive season approaching and an indefinite strike on the table from 26 October, the government faces a narrowing window to negotiate before public inconvenience becomes a political liability.
NationPress
24 Aug 2026
Frequently Asked Questions
Why are bank unions going on strike on 11 September?
The United Forum of Bank Unions (UFBU) has called the strike primarily over three issues: the government's failure to approve the five-day banking proposal despite IBA agreement in March 2024, disagreements over the structure of the PLI scheme for bank officers, and several unresolved pension-related demands.
Which banks will be affected by the bank strike?
The strike is expected to primarily affect public sector banks across parts of the country. Private sector banks may see limited impact depending on union membership, but customers are advised to complete critical transactions before 11 September.
What is the five-day banking proposal and why is it pending?
The five-day banking proposal would eliminate Saturday working in exchange for a 40-minute extension of working hours Monday to Friday. It was agreed upon as part of the 12th Bipartite Settlement signed on 8 March 2024, but has reportedly remained pending with the government for more than two years without formal approval.
What is the dispute over the PLI scheme for bank officers?
The government's PLI scheme offers officers in Scale IV and above up to 365 days of basic pay based on individual performance, while workmen and officers up to Scale III are capped at 15 days' basic pay plus dearness allowance. The UFBU argues this contradicts the IBA-agreed principle of linking incentives to overall bank performance and maintaining uniformity across cadres.
What happens if the government does not address bank union demands?
The UFBU has announced a three-day nationwide strike from 28 September, coinciding with the banking sector's half-yearly closure, followed by an indefinite strike from 26 October if demands remain unresolved.
