Ministry Appeals to Unions Amid Strike Threat
The Finance Ministry of India on Monday, September 21, 2026, issued a direct appeal to bank unions, urging them to call off a planned three-day strike. The United Forum of Bank Unions, along with other associations representing public sector and Regional Rural Banks, has scheduled a strike from September 28 to 30, with a further threat of an indefinite strike from October 26.
The Ministry emphasized that while most concerns raised by the unions have been addressed, the primary remaining demand for a five-day workweek is actively under examination. It called for continued dialogue to resolve outstanding issues and ensure uninterrupted banking services nationwide.
Key Demands and Government Response
Bank unions had put forth two main demands: the implementation of a five-day banking week and the withdrawal of the Performance Linked Incentive (PLI) scheme. The Finance Ministry confirmed that the PLI scheme has already been kept in abeyance following discussions with union representatives.
Despite several rounds of conciliation meetings held after the PLI decision, the unions proceeded with a one-day strike on September 11, leading to the current call for a more extensive three-day action. The Ministry reiterated its commitment to proactive welfare measures for the banking workforce.
Welfare Measures and Recruitment Efforts
The government highlighted numerous initiatives undertaken for bank employees, including higher salaries and allowances, revised pay scales, an increase in executive posts, and streamlined promotion and transfer processes. In August 2024, the Staff Welfare Fund for public sector banks saw a significant 56% increase.
Regarding staffing, the Ministry reported that approximately 4,82,800 employees were recruited across public sector banks between fiscal years 2014-15 and 2025-26, with recruitment doubling in the last three years. As of July 1, 2026, 95.84% of officer positions and 92% of subordinate and award staff positions were filled.
Additional welfare measures cited include special leave provisions for women employees, revised family pensions, ex-gratia payments for pensioners, an updated medical insurance policy for retirees, and enhanced conveyance allowances for employees with disabilities. Furthermore, negotiations for the upcoming Bipartite Settlement have commenced ahead of the November 2027 deadline.
Potential Disruption and Ministry's Warning
The Finance Ministry expressed serious concerns about the timing of the proposed three-day strike. It noted that the strike coincides with the half-yearly closing of banks on September 30, a critical period for reconciliation, provisioning, treasury, and market operations.
Coupled with the preceding weekend, the strike could effectively result in a five-day closure of banking services, causing significant inconvenience to the public, impacting bank operations, and ultimately harming the interests of bank employees themselves. The Ministry reaffirmed its commitment to addressing employee concerns through constructive engagement and urged unions to pursue dialogue over disruptive industrial action.