The United Forum of Bank Unions (UFBU) has announced a major nationwide strike starting on September 11, 2026. This move comes after long-standing demands for a five-day work week and a fair bonus system remained unresolved. The UFBU represents about 90 per cent of the banking workforce, including staff from public, private, foreign, regional rural, and cooperative banks.

The protest will happen in stages. After the one-day strike on September 11, the unions plan a three-day strike from September 28 to September 30. If the government and the Indian Banks’ Association (IBA) do not agree to their terms, the unions have warned of an indefinite strike (stopping work forever until demands are met) starting from October 26.

The first major demand is the implementation of a five-day banking week. Currently, bankers only get the second and fourth Saturdays off. While the IBA agreed to a five-day week in principle during the wage settlement signed in March 2024, the Finance Ministry has not yet given the final green light. Under the agreed plan, bank employees would work an extra 40 minutes every day from Monday to Friday to make up for the lost Saturdays. Unions argue that other big offices like RBI, LIC, and NABARD already follow a five-day schedule.

The second major issue is the Performance Linked Incentive (PLI) scheme (a bonus paid based on how well the bank performs). Earlier, the PLI was the same for everyone, from cleaners to General Managers, with a maximum payout of 15 days' wages. However, the Department of Financial Services (DFS) recently changed the rules for senior officers in Scale IV to VII.

Under these new rules, high-level officers could get a bonus equal to 365 days of salary, while the rest of the 95 per cent of the workforce is still capped at just 15 days. The unions say this creates a huge gap between staff and is unfair. They claim this new formula was forced upon banks despite the matter being pending in the Delhi High Court and before the Labor Commissioner.

For bank officers and aspirants, this news is critical. A five-day week would mean a better work-life balance and a standardized holiday calendar like other government sectors. However, the strike could lead to massive disruptions in banking services across India, affecting cash withdrawals, cheque clearances, and loan processing for customers.

Bankers should keep a close watch on the Ministry of Finance and the IBA for any last-minute meetings to stop the strike. If no agreement is reached by early September, branches across the country are likely to remain closed, putting pressure on the government to finally settle the five-day week issue.