Banking services at public sector banks (PSBs) were hit hard today as employees went on a nationwide strike. The United Forum of Bank Unions (UFBU), which is a group of seven different unions, called for this protest. The unions represent about 90% of all bank officers and staff in India. While government-owned banks saw a huge impact, most new private sector banks continued their work normally.

In many cities, PSB branches were either fully closed or working with very few staff. This meant that regular services like depositing cash, withdrawing money, and clearing cheques were stopped. Many customers found it difficult to finish their branch-related work. However, the strike did not affect digital banking. Tools like UPI (mobile payments) and net banking worked fine because these systems are automated.

The main reason for this strike is the demand for a 5-day workweek. Currently, bank staff work on the first, third, and fifth Saturdays of every month. The unions want all Saturdays to be declared as holidays. This demand was part of the 12th Bipartite Settlement (a wage agreement between unions and bank owners) signed with the Indian Banks' Association (IBA) in March 2024. However, the central government has not yet issued the official notification to start this new holiday schedule.

Union leaders expressed their frustration over the delay. C H Venkatachalam, the General Secretary of the All India Bank Employees Association (AIBEA), said the strike was forced because the government did not agree to their demands. He mentioned that bank employees feel they are being treated unfairly compared to other sectors. The unions believe that a five-day week will help staff maintain a better work-life balance.

Apart from the 5-day week, there are several other pending issues. The unions are asking for pension updates and improvements. They also want a uniform formula for Dearness Allowance (extra money given to cover inflation) for all pensioners. Another big demand is allowing staff under the National Pension System (NPS) to switch back to the Old Pension Scheme (OPS), which offers a guaranteed monthly payment after retirement.

Before the strike began, major banks like State Bank of India (SBI) warned their customers. In an official notice, SBI said that while they tried to keep branches running, work would likely be affected. Other public sector banks gave similar warnings to ensure customers could plan their visits in advance. This shows the significant influence the unions have over daily banking operations in India.

For bank officers and aspirants, this event highlights the ongoing struggle for better working conditions in the industry. The 12th Bipartite Settlement brought some good news regarding salaries, but the delay in Saturday holidays remains a major pain point. Bankers are now waiting for the government to take the next step. If the government does not issue the notification soon, more protests could follow.

The impact on customers was mostly limited to physical branch work. Because India has moved heavily toward digital payments, the economy did not come to a full stop. However, small businesses and people who rely on cash or cheques faced delays. Everyone is now watching the Ministry of Finance to see when they will finally approve the five-day workweek for the banking sector.