The Finance Ministry has asked public-sector banks to make adequate preparations ahead of a three-day nationwide bank strike scheduled from September 28 to 30, as employee unions continue to press for a five-day banking week.
Finance Ministry officials met chief executives of public-sector banks on September 21 to review contingency measures and minimise disruption to banking services during the strike. Banks have been asked to ensure the availability of cash and maintain essential services during the period.
The proposed strike by the United Forum of Bank Unions (UFBU) comes at the end of the month and coincides with the half-yearly closing of bank accounts on September 30. The government has warned that the timing could create additional pressure on branch operations, reconciliation, provisioning, treasury and market-related activities.
SBI, Union Bank and Other PSBs Issue Advisories
Several public-sector lenders, including State Bank of India (SBI), Union Bank of India, Indian Bank and Punjab National Bank, have issued advisories to customers ahead of the proposed strike.
The banks have asked customers to complete important transactions before September 28 and make use of digital banking channels during the strike period. Customers have also been advised to use ATMs for their cash requirements.
SBI has asked customers to use ATMs, automated deposit and withdrawal machines, customer service points, internet banking, mobile banking, Unified Payments Interface (UPI) and other digital channels for routine banking requirements.
Union Bank of India has similarly said that its mobile and internet banking services, ATMs, business correspondent points, UPI and other digital channels would remain available for routine transactions, although branch-level operations could be affected.
Banks are also taking steps such as stocking ATMs with sufficient cash and deploying additional manpower at branches to support continuity of services.
Branch Operations May Face Disruptions
The extent of disruption at physical branches could vary depending on location and staff availability.
A branch manager of a large public-sector bank said branches could remain non-functional in some locations if employees participate in the strike. He also pointed to the limited impact of the September 11 strike, when some branch operations were affected.
Loan processing and other activities requiring physical processing could face greater disruption. Bankers have also indicated that cash withdrawals could increase from September 29, although ATM operations are increasingly supported through third-party cash-loading arrangements.
Digital banking services such as internet banking, UPI and ATMs are expected to remain important alternatives for customers during the strike.
UFBU’s Demands
The UFBU, an umbrella body representing bank employee and officer unions, has called the strike over pending demands, with implementation of a five-day banking week being the key issue.
The unions had earlier raised two major demands: implementation of a five-day banking week and withdrawal of the Performance Linked Incentive (PLI) scheme.
The government has said the PLI scheme has already been kept in abeyance following discussions with employee representatives. Conciliation meetings have also been held on the remaining demand for a five-day workweek.
Despite these discussions, a one-day strike was held on September 11, followed by the proposed three-day strike from September 28 to 30.
The unions have also announced an indefinite strike from October 26 if the outstanding issues remain unresolved.
Half-Yearly Closing Adds to Concern
The September 28 to 30 strike is particularly significant because September 30 marks the half-yearly closing of banks.
The Finance Ministry has said that a disruption during this period could affect customers, businesses, government transactions and international banking operations. The three-day strike, combined with the preceding weekend, could also result in an effective five-day interruption to physical banking services.
For customers, banks have advised completing time-sensitive branch transactions before the strike and using digital channels, ATMs and other available banking facilities during the strike period.
-By Shivani Solanki
