The Ministry of Finance on Monday urged public sector bank employees to call off their proposed three-day strike from September 28 to 30 over the demand for a five-day workweek, saying the action could disrupt banking services during the half-yearly closing of banks.
The United Forum of Bank Unions and other unions and associations have called a three-day strike from September 28 to 30, followed by an indefinite strike from October 26, over the demand for a five-day workweek. A one-day strike was held on September 11.
The government said it had already addressed one of the unions’ two principal demands by keeping the Performance Linked Incentive (PLI) scheme for public sector bank executives in abeyance. The scheme, issued in November 2024, was kept on hold for 2025-26 following employee representations, with the government saying the issue would be taken up during ongoing bipartite settlement and joint-note discussions.
The ministry said several rounds of conciliation had since been held on the remaining demand for a five-day workweek, but the proposed strike would go ahead.
“The proposed 3-day strike period, from 28th to 30th Sept 2026, also coincides with the half-yearly closing of banks on 30th September, a date of particular significance for reconciliation, provisioning, and treasury and market operations. A disruption of this nature, combined with the preceding weekend, would result in an effective five-day closure of banking services at a particularly sensitive point in the financial calendar — causing considerable inconvenience to customers, businesses, Government transactions, and international banking operations,” the finance ministry said in its statement.
The ministry also cited measures taken for bank employees, including higher salaries and allowances, a 56 per cent increase in the Staff Welfare Fund in August 2024, an increase in executive posts and changes to promotion and transfer processes.
Public sector banks recruited around 4.83 lakh employees between FY15 and FY26, according to the government, with recruitment doubling over the last three years. As of July 1, 2026, 95.84 per cent of officer positions and 92 per cent of subordinate and award staff positions were filled.
It also highlighted special leave provisions for women employees, revisions to family pension, changes in medical insurance for retirees and higher conveyance allowance for employees with disabilities.
The government said negotiations for the next bipartite settlement had begun ahead of the November 2027 deadline, with the aim of completing the process well in advance.
