The Finance Ministry has directed all public sector banks and Regional Rural Banks (RRBs) to remain fully operational on Sunday, 27 September 2026, a pre-emptive move to cushion the public from a three-day nationwide bank strike called by the United Forum of Bank Unions (UFBU) from 28 to 30 September. The Reserve Bank of India (RBI) has granted the necessary approval for all bank branches, offices, ATM-link branches, and Currency Chests to stay open that day.

Why Sunday Banking Was Ordered

The strike's timing was particularly disruptive because it fell immediately after a weekend — both Saturday, 26 September and Sunday, 27 September are regular bank holidays. Without government intervention, customers would have faced a near-continuous five-day banking blackout from Saturday through Wednesday. By directing banks to open on Sunday, the Centre has effectively broken that stretch and ensured customers can complete essential transactions before the work stoppage begins.

'In view of the proposed three-day nationwide bank strike called by the United Forum of Bank Unions (UFBU) from September 28 to 30, coinciding with the preceding weekend holidays of September 26 and 27, the government has taken proactive steps to safeguard the banking needs of citizens,' the Finance Ministry said in a statement.

What the Unions Are Demanding

The UFBU and several other unions representing public sector bank staff and RRB employees have called the strike in support of two core demands: the implementation of a five-day banking week and the withdrawal of the Performance Linked Incentive (PLI) scheme. Currently, bank staff are granted two Saturdays off per month; unions are demanding that the remaining two Saturdays also be declared non-working days.

The movement for a five-day week has gathered momentum over the past few years as bank unions argue that employees are overworked and that the extended schedule hampers productivity and staff welfare.

Government's Concession and Appeal to Unions

In a significant concession ahead of the strike, the government confirmed that it has already placed the PLI scheme in abeyance following detailed discussions — addressing one of the two primary union demands. The Finance Ministry noted that the remaining demand — the five-day week — 'continues to be examined.'

'Given that most concerns of the unions have been substantially addressed, that the remaining demand continues to be examined, and that the government continues to proactively introduce welfare measures for the banking workforce, bank employees are urged to refrain from resorting to strikes, work towards resolving issues through dialogue, and ensure that banking services remain uninterrupted,' the ministry said.

Both the government and bank managements have formally appealed to unions to defer the proposed strike, though as of 24 September 2026 no such deferral has been announced.

Impact on Citizens and the Economy

A three-day strike by bank unions can have cascading effects on retail transactions, salary credits, loan disbursements, and government welfare transfers — particularly for citizens in semi-urban and rural areas who remain dependent on branch banking. The Sunday opening is intended to allow customers to pre-emptively withdraw cash, complete pending transfers, and access currency via ATM-linked branches.

The government has stated that the welfare and convenience of bank customers remains its 'foremost priority,' and that measures are in place to ensure essential banking services continue uninterrupted during the strike period.

With the PLI scheme now in abeyance and the five-day week demand reportedly still under examination, how the unions respond in the coming days will determine whether the strike proceeds as scheduled or is called off before 28 September.