Full Breakdown
UFBU Calls Three-Day Nationwide Bank Strike; Government Moves to Advance Salaries and Keep Select Branches Open
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UFBU Announces Three-Day Nationwide Bank Strike
The United Forum of Bank Unions (UFBU) says it represents around 90 % of the banking workforce and has scheduled a three-day strike for September 28–30, 2026. The action follows a one-day strike on September 11, 2026 and coincides with the sector’s half-yearly closing on September 30. UFBU’s demands include a five-day banking week, changes to the performance-linked incentive, a uniform dearness-allowance formula for retirees, restoration of the Old Pension Scheme for NPS participants, and broader pension and service improvements.
Government’s Preemptive Measures
The Ministry of Finance issued an office memorandum on September 23, 2026 directing all ministries and departments to disburse September salaries, wages and pensions on September 25, 2026. The advance will be treated as a loan, with adjustments made in the October payment. The Finance Ministry also instructed the RBI to convey these directions to all paying bank branches and ordered all banks, including Regional Rural Banks, to remain open on Sunday, September 27, 2026 to provide essential services ahead of the strike. Public-sector banks have advised customers to use digital channels—mobile banking, ATMs, internet banking, Business Correspondent points and UPI—if the strike proceeds.
Background & Context
The strike falls in the final days of the fiscal quarter, a period critical for reconciliation and treasury operations. UFBU’s demand for a five-day workweek has been pending since the 2024 wage settlement, and unions allege recent changes to the performance-linked incentive were unilateral. The government says most concerns have been addressed through negotiations and a 56 % increase in the Staff Welfare Fund in August 2024, but UFBU maintains its plan, noting the timing could exacerbate disruptions.
Data & Statistics
- Representation: UFBU claims ? 90 % coverage of bank officers and employees.
- Recruitment: Public-sector banks added about 4.83 lakh employees between FY 2015 and FY 2026.
- Staff Welfare Fund: Increased by 56 % in August 2024.
- Sept 23, 2026 – memorandum issued.
- Sept 25, 2026 – advance salary/pension disbursement.
- Sept 27, 2026 – banks to remain open.
- Sept 28–30, 2026 – strike dates.
- Sept 30, 2026 – half-yearly closing.
Impact on Banking Services
The advance payment aims to avoid salary and pension delays for central government employees during the strike. Keeping branches open on Sept 27 should maintain cash withdrawals, ATM services and digital banking. The strike is expected to halt most branch operations for three days, extending reduced service to five consecutive days when combined with the weekend holidays on Sept 26–27. Customers have been advised to complete time-sensitive transactions before Sept 26 and rely on digital platforms during the strike.
Conflicting Reports & Gaps
Some outlets report banking services will be unavailable for five consecutive days from Sept 26–30, citing the weekend plus the strike. Others state only the three strike days (Sept 28–30) will see closures, with Sept 27 remaining operational. No definitive data are available on how many branches will stay open on Sept 27 or the extent of digital-only service.
What’s Next
- Sept 25, 2026: Advance salaries, wages and pensions credited.
- Sept 27, 2026: All banks, including Regional Rural Banks, to operate under RBI approval.
- Sept 28–30, 2026: UFBU-led strike expected to halt most branch activities.
- Oct 26, 2026: Unions have announced an indefinite strike to follow the three-day action.
The government and banks continue to monitor the situation and have urged UFBU to postpone the strike, emphasizing the impact on quarter-end financial processes.