The Ministry of Finance has issued an appeal to employees of Public Sector Banks and Regional Rural Banks to ensure uninterrupted banking services amid planned strikes. The United Forum of Bank Unions and other unions have called for strikes supporting two principal demands: implementation of five-day banking and withdrawal of the Performance Linked Incentive (PLI) scheme. The government has already kept the PLI scheme in abeyance, fulfilling one of the two main demands.
Despite this resolution, a one-day strike was held on September 11, 2026, with a further three-day strike scheduled from September 28-30, 2026, and an indefinite strike proposed from October 26, 2026, solely on the five-day workweek demand. The government emphasizes that Public Sector Banks play a vital role in economic and social development, particularly in financial inclusion, digital banking, and rural outreach.
The document details extensive government measures to improve working conditions and welfare of bank employees, including: increase in salary and allowances with new pay scales for all cadres; 56% enhancement of Staff Welfare Fund in August 2024 for health expenses, canteen subsidies, sports activities, and education assistance; increase in executive posts at AGM, DGM, GM, and CGM levels; recruitment of approximately 482,800 employees from FY2014-15 to FY2025-26, with recruitment doubling in the last three years; 95.84% of Officer positions and 92% of Subordinate/Award staff positions filled as of July 1, 2026; streamlined promotion processes and improved transfer policies with online platforms; special leave provisions for women employees including menstrual leave, infertility treatment, adoption, and stillbirth; revised Family Pension for retirees and pension option for resignees; monthly Ex-gratia for pensioners during current bipartite period; increased Ex-gratia for pre-1986 retirees; revised medical insurance policy with Base policy concept; increased Conveyance Allowance for PwBD employees; and reduced time for wage settlement completion.
The government has begun negotiations for the upcoming Bipartite Settlement well in advance of the November 2027 deadline to ensure prompt implementation. The proposed three-day strike from September 28-30, 2026, coincides with the critical half-yearly bank closing on September 30, which is significant for reconciliation, provisioning, and treasury operations. Combined with the preceding weekend, this would result in an effective five-day closure of banking services, causing considerable inconvenience to customers, businesses, government transactions, and international banking operations.
The government argues that strikes disrupt banking services, inconvenience the public, impact bank business, and ultimately harm employee interests. Given that most union concerns have been substantially addressed and the remaining demand continues to be examined, the government urges bank employees to refrain from strikes and resolve issues through dialogue to ensure uninterrupted banking services.