Public sector banks across India are bracing for service disruptions on January 27 as the United Forum of Bank Unions (UFBU) proceeds with its nationwide strike. The strike affects major banking institutions including State Bank of India (SBI), Punjab National Bank (PNB), Union Bank, Canara Bank, and Bank of Baroda, marking the fourth consecutive day of banking disruptions following holidays on January 24, 25, and 26 for fourth Saturday, Sunday, and Republic Day respectively.

Banks Affected by the Strike

The nationwide strike primarily impacts public sector banks, as UFBU represents nine unions of officers and employees from these institutions. SBI has already informed stock exchanges about potential disruptions through a regulatory filing on Friday, stating: "We advise that while the bank has made necessary arrangements to ensure normal functioning in its branches and offices on the day of strike, it is likely that work in the bank may be impacted by the strike."

Private sector banks are expected to function normally as their employees are largely not part of the unions participating in the strike.

Service Impact Assessment

The strike will create a mixed impact on banking services, with physical operations bearing the brunt while digital services remain unaffected.

Services Expected to be Disrupted:

• Cash deposits and withdrawals at branches
• Cheque clearances and processing
• Administrative work requiring physical presence
• ATM cash availability may face localized issues due to logistical delays

Services Continuing Normal Operations:

• Digital banking services
• UPI transactions
• Internet banking
• Mobile banking applications

Strike Background and Demands

The nationwide strike follows a failed conciliation meeting on January 23 with the chief labour commissioner. UFBU's primary demand centers on the immediate implementation of a five-day work week, specifically seeking declaration of all Saturdays as holidays. This demand stems from an agreement reportedly made during the 12th Bipartite Settlement signed with the Indian Banks' Association (IBA) in March 2024, which is still awaiting government notification.

Currently, banks operate on the first, third, and fifth Saturdays of every month, while remaining closed on the second and fourth Saturdays.

Customer Advisory

Customers planning banking activities are advised to contact their nearest branch to confirm operational status. Given the extended period of banking disruptions, customers are encouraged to utilize digital banking platforms for essential transactions. The strike adds to customer inconvenience following the three-day holiday period, creating challenges for those requiring immediate banking services.

The banking sector's response to union demands will likely influence future operational patterns and employee working conditions across public sector financial institutions.

Bank unions across India have announced a nationwide strike on January 27, 2025, escalating their demand for implementation of a five-day work week that was reportedly agreed upon during wage negotiations in March 2024. The United Forum of Bank Unions (UFBU), representing nine prominent bank unions across public sector banks and select private banks, issued the strike call after alleging government inaction on their demands.

Strike Details and Union Demands

In a circular dated January 4, 2025, the All India Bank Officers' Confederation (AIBOC) and UFBU stated that the strike has been called following the government's failure to respond to demands agreed upon during the March 2024 wage revision settlement with the Indian Banks' Association. The unions specifically want the second and fourth Saturdays designated as holidays, which they claim was part of the original settlement agreement.

Union's Position and Justification

UFBU emphasized that their proposal would not result in loss of working hours, as they have agreed to extend daily working time by 40 minutes from Monday to Friday. The union expressed frustration in their statement, saying "It is unfortunate that the government is not responding to our genuine demand. There would be no loss of man hours because we have agreed to an extra 40 minutes working per day from Monday to Friday."

The unions point to precedent set by other financial institutions, highlighting that the Reserve Bank of India (RBI), Life Insurance Corporation (LIC), and General Insurance Corporation of India (GIC) have already adopted five-day working weeks. They also noted that foreign exchange markets, money markets, stock exchanges, and government offices do not operate on Saturdays.

Expected Impact on Banking Services

While banks will remain open on January 27, 2025, customer services are expected to face significant disruptions due to staff participation in the protest. The strike is likely to impact multiple banking operations across the country.

Industry Context

The UFBU serves as an umbrella organization representing staff and officers across India's public sector banks and select older private banks. This coordinated approach demonstrates the widespread nature of the demand across the banking sector. The strike represents an escalation in the ongoing dispute over work-week arrangements that has been pending since the March 2024 wage revision discussions.

The timing of the strike and the unions' emphasis on existing precedents in other financial institutions suggests they view the five-day work week as an industry standard that should be uniformly applied across all banking institutions in India.