The Finance Ministry on Monday, 21 September 2026 urged employees of public sector banks and regional rural banks (RRBs) to withdraw a proposed three-day strike scheduled from 28 to 30 September, arguing that the government has already met one of their two core demands by placing the Performance Linked Incentive (PLI) scheme in abeyance. The appeal comes amid an escalating standoff with the United Forum of Bank Unions and allied union groups.

What the Government Said

In a formal statement, the Finance Ministry said that 'most concerns of the Unions have been substantially addressed' and that the remaining demand 'continues to be examined.' The ministry called on bank employees to 'refrain from resorting to strikes, work towards resolving issues through dialogue, and ensure that banking services remain uninterrupted.'

The government noted that it had held several rounds of conciliation talks with the unions, in keeping with the established practice of bilateral dispute resolution. Despite this engagement and the partial concession on PLI, a one-day strike was held on 11 September, a further three-day stoppage is now set for 28–30 September, and an indefinite strike has been proposed from 26 October on the single outstanding demand of a five-day banking week.

Why the Timing Is Particularly Sensitive

The Finance Ministry highlighted that the 30 September date coincides with the half-yearly closing of banks — a period of critical importance for reconciliation, provisioning, and treasury and market operations. Combined with the preceding weekend, a three-day walkout would effectively result in a five-day closure of banking services at one of the most sensitive points in the financial calendar.

This disruption, the ministry cautioned, would cause 'considerable inconvenience to customers, businesses, government transactions, and international banking operations.' The statement pointedly noted that banking continuity 'directly affects the everyday lives of the general public.'

The Unions' Demands

The United Forum of Bank Unions and certain other unions representing employees of public sector banks and RRBs have been agitating on two main planks: implementation of a five-day banking week, and withdrawal of the PLI scheme. The government's decision to hold the PLI in abeyance addressed the second demand. The five-day workweek, however, remains unresolved.

The government pointed out that it had already designated the 2nd and 4th Saturdays of every month as public holidays for public sector banks — a step taken in 2015. The remaining Saturdays, it argued, continue to serve as an important access window for citizens who rely on in-branch banking.

State of Public Sector Banks

The Finance Ministry sought to frame any strike action as counterproductive, noting that public sector banks 'today stand on a healthy and robust footing — a position achieved through the sustained efforts of the government and active contribution of bankers and bank management over the years.' It urged all stakeholders to preserve this financial stability rather than risk disrupting it.

Critics, however, argue that bank unions have a legitimate right to collective bargaining and that the five-day workweek demand reflects broader concerns about employee workload and work-life balance — issues that have persisted for years in the sector.

What Happens Next

Should the unions proceed with the 28–30 September strike, customers, businesses, and government entities face the prospect of a near-week-long gap in public banking services at a critical financial juncture. The government said it 'remains committed to the welfare and well-being of bank employees' and to resolving genuine concerns through 'constructive engagement.' Whether that commitment translates into a fresh round of meaningful talks before 28 September will determine whether the disruption can be averted.