Banking operations likely to be hit on January 27 as unions go on strike seeking 5-day work week

New Delhi: Banking operations of public sector banks across the country are likely to be impacted on Tuesday with the United Forum of Bank Unions (UFBU) deciding to go ahead with a nationwide strike on January 27 to press for the immediate implementation of a five-day work week.

The strike call by the UFBU, an umbrella body of nine unions representing officers and employees, comes after a conciliation meeting on January 23 with the chief labour commissioner failed to yield a positive outcome.

With banks remaining closed on January 25 (Sun) and January 26 (Republic Day), the strike on Tuesday will result in a disruption of branch-level services for three consecutive days.

"Despite detailed discussions during the conciliation proceedings, there was no assurance on our demand. Hence, we have been compelled to proceed with the strike action," All India Bank Employees Association (AIBEA), a constituent of UFBU, General Secretary C H Venkatachalam told PTI.

All India Bank Officers' Confederation (AIBOC) General Secretary Rupam Roy said the decision to declare all Saturdays as holidays was agreed between the Indian Banks' Association and UFBU during the wage revision settlement in March 2024.

"It is unfortunate that the government is not responding to our genuine demand. There would be no loss of man-hours as we have agreed to work an extra 40 minutes daily from Monday to Friday," he said.

According to another UFBU constituent National Confederation of Bank Employees (NCBE) General Secretary L Chandrasekhar said, "This movement is not against customers, but for a sustainable, humane, and efficient banking system. A rested banker serves the nation better. A balanced workforce strengthens financial stability. 5-Day banking is not a luxury; it is an economic and human necessity." Services such as cash deposits, withdrawals, cheque clearances, and administrative work are expected to be hit at branches of public sector banks (PSBs), including State Bank of India (SBI), Punjab National Bank (PNB), and Bank of Baroda.

However, operations at major private sector lenders like HDFC Bank, ICICI Bank, and Axis Bank are expected to remain largely unaffected as their employees are not part of the unions that will be going on strike.

Digital banking services, including UPI and internet banking, will continue to function, though ATM cash availability could face localised issues due to logistical delays.

Several public sector lenders, including banking giant SBI have informed stock exchanges about the potential impact.

"We advise that while the bank has made necessary arrangements to ensure normal functioning in its branches and offices on the day of strike, it is likely that work in the bank may be impacted by the strike," SBI said in a regulatory filing on Friday.

The unions are demanding the declaration of all Saturdays as holidays, a key point that was reportedly agreed upon during the 12th Bipartite Settlement signed with the Indian Banks' Association (IBA) in March 2024 but is awaiting government notification.

Currently, banks remain open on the first, third, and fifth Saturdays of every month.