Banking Services Face Potential Three-Day Disruption as Unions Announce Strike
Banking operations across India may face significant disruption as employee unions have declared a nationwide strike scheduled for January 27, 2026. This industrial action comes as unions intensify their long-standing demand for implementation of a five-day work week in the banking sector.
Three Consecutive Days of Potential Bank Closures
If the strike proceeds as planned, public sector banking services could be affected for three consecutive days. This disruption would begin with the regular Sunday closure on January 25, followed by the Republic Day national holiday on January 26, and culminate with the strike day on January 27.
Most public sector banks have reportedly begun informing customers about potential service disruptions, according to PTI reports. The current banking schedule provides employees with second and fourth Saturdays off each month, while first and third Saturdays remain working days, in addition to Sundays and RBI-listed holidays.
Conciliation Talks Fail to Yield Positive Outcome
The United Forum of Bank Unions (UFBU), an umbrella organization representing nine major bank unions, confirmed that conciliation proceedings held on Wednesday and Thursday failed to produce a positive resolution. The meetings, chaired by the Chief Labour Commissioner, included representatives from:
- Indian Banks' Association (IBA)
- Various banks
- Department of Financial Services, Ministry of Finance
- All nine UFBU member unions
"Despite detailed discussions, finally there was no positive outcome out of the conciliation proceedings," stated the UFBU in an official communication, confirming their decision to proceed with the January 27 strike.
Historical Context and Union Arguments
The demand for a five-day work week dates back to the wage revision settlement of March 2024, when the Indian Banks' Association and UFBU agreed in principle to declare all Saturdays as holidays. Union representatives argue that their demand is reasonable, noting that employees have agreed to work an extra 40 minutes daily from Monday to Friday to compensate for the reduced work days.
"It is unfortunate that the government is not responding to our genuine demand," UFBU representatives stated earlier this month. They further emphasized that RBI, LIC, GIC, stock exchanges and government offices already follow a five-day work week, questioning why banks should lag behind in adopting similar working conditions.
Impact on Private Sector Banks
While the strike primarily targets public sector banks, its impact on private sector institutions appears limited. Major private banks including HDFC Bank, ICICI Bank and Kotak Mahindra Bank are expected to maintain normal operations at their branches, according to industry reports.
The UFBU represents employees and officers across public sector banks and some older generation private banks, making their strike action particularly significant for the public banking infrastructure that serves millions of Indian customers daily.
