Bank Unions Set September Strikes Over 5-Day Banking Week, PLI

• Bank unions will strike nationwide over five-day banking week and PLI.

• Phased strikes begin September 11, followed by three-day and indefinite action.

• Prolonged strikes could disrupt branches, while digital banking may continue normally.

Banking operations across India could face disruptions in the coming months after the United Forum of Bank Unions (UFBU), an umbrella body representing major bank employee and officer unions, announced a nationwide strike over two specific demands: a five-day banking week and the withdrawal of the revised performance-linked incentive (PLI) framework. The unions have announced three phases of the action, according to a Livemint report.

The union has announced that the first phase will be a one-day nationwide strike on September 11, 2026, followed by a three-day strike from September 28th to September 30th, 2026. If the demands are not met, the unions will pursue an indefinite strike that will start on October 26th, 2026.

Why These Demands Are Significant?

The demand for a five-day banking week has been pending for more than two years now. Banking unions have cited the 12th Bipartite Settlement and the 9th Joint Note, which was signed in March 2024. The Indian Banks’ Association (IBA) had agreed back then to introduce a five-day banking system. The proposal envisages that it compensates for the additional weekly holiday by extending the working hours through the five-day work week.

As per the unions, the proposal was subsequently recommended to the government but has yet to receive final approval. The five-day work week has been a long-standing demand by the bankers.

The second major issue is relevant to the revised PLI framework, which was introduced by the Finance Ministry’s Department of Financial Services (DFS). Bank unions have criticised the structure for creating a significant disparity in the incentives between the senior officers and other employees.

The framework introduced by the ministry states that officers in Scale IV and above could receive PLI, which is linked to individual performance. These incentives can extend up to 36 days of basic pay. On the other hand, employees up to Scale III can receive incentives only up to 15 days of basic pay along with Dearness Allowance (DA).

UFBU has argued that the incentive system should be linked to the overall performance of the bank, with a more uniform structure for employees. The PLI dispute is already under review before the Chief Labour Commissioner and is also contested before the Delhi High Court.

What Does This Mean For Customers?

For customers, a prolonged strike could affect branch services and other in-person banking operations. Digital banking services are still expected to function normally.