PSB strike: Sept 28-30 action could mean 5-day banking disruption, govt warns
ADVERTISEMENT
Public sector bank employees have been urged to refrain from a three-day strike scheduled from September 28 to 30, with the government warning that the action, coupled with the preceding weekend, could effectively disrupt banking services for five days at a particularly sensitive point in the financial calendar.
In a statement issued on Monday, the Ministry of Finance said the United Forum of Bank Unions and other unions and associations representing public sector bank employees, supported by Regional Rural Banks, had called for strikes over two principal demands — five-day banking and withdrawal of the Performance Linked Incentive (PLI) scheme.
The government said it had already kept the PLI scheme in abeyance following discussions with the unions, thereby addressing one of their two main demands.
Why September 28-30 strike matters
The proposed three-day strike coincides with the half-yearly closing of banks on September 30, a key date for reconciliation, provisioning, and treasury and market operations, the Finance Ministry said.
“The proposed 3-day strike period, from 28 to 30 Sept 2026, also coincides with the half-yearly closing of banks on 30 September,” the ministry said.
It added that the strike, combined with the preceding weekend, “would result in an effective five-day closure of banking services”.
According to the government, such a disruption could cause inconvenience to customers and businesses and affect government transactions as well as international banking operations.
The development comes after bank employees staged a one-day strike on September 11. The unions have also proposed an indefinite strike from October 26, with five-day banking now the remaining principal demand.
The Finance Ministry said the government has taken several steps in recent years to improve working conditions and employee welfare in public sector banks.
These include increases in salaries and allowances, higher executive posts and a 56% increase in the Staff Welfare Fund in August 2024. The government also said PSBs recruited around 4.83 lakh employees between FY2014-15 and FY2025-26, with recruitment doubling over the last three years.
Other measures cited include streamlined promotion and transfer processes, special leave provisions for women employees, revised family pensions and medical insurance for retirees. The government has also begun negotiations for the upcoming Bipartite Settlement ahead of the November 2027 deadline.
Govt appeals for dialogue
The ministry said public sector banks play a crucial role in financial inclusion, digital banking, financial literacy and rural outreach, and stressed that uninterrupted banking services directly affect citizens.
“Strikes cause disruption in banking services that inconvenience the public, impact the business of the bank, and ultimately harm the interests of bank employees,” the government said.
The government urged employees to refrain from further strikes and resolve the remaining demand through dialogue.
“Bank employees are urged to refrain from resorting to strikes, work towards resolving issues through dialogue, and ensure that banking services remain uninterrupted,” the Finance Ministry said.