Banking operations hit as unions go on nationwide strike for five-day work week

Cash transactions and branch services disrupted at public sector banks across India

New Delhi: Banking operations across the country were disrupted on Tuesday as employees and officers of public sector banks (PSBs) observed a nationwide strike called by the United Forum of Bank Unions (UFBU), pressing for the immediate implementation of a five-day work week.

Most PSB branches were either fully closed or operating with limited staff, impacting routine services such as cash deposits, withdrawals, cheque clearances and administrative work. The strike also affected some old-generation private sector banks, though major private lenders remained largely unaffected.

Why the strike was called

The UFBU, an umbrella body representing nine bank employee and officer unions, announced the strike after a conciliation meeting with the Chief Labour Commissioner on January 23 failed to produce a resolution.

“All bank employees and officers are highly aggrieved. We are being discriminated against despite earlier agreements,” said C H Venkatachalam, General Secretary of the All India Bank Employees Association (AIBEA), a constituent of UFBU.

Union leaders reiterated that the demand for declaring all Saturdays as holidays was part of the 12th Bipartite Settlement signed with the Indian Banks’ Association (IBA) in March 2024, but is still awaiting government notification. Currently, banks operate on the first, third and fifth Saturdays of each month.

Services impacted and what remains functional

Due to the strike:

• Cash deposits and withdrawals were affected

• Cheque clearing and branch-level processing slowed

• Administrative and customer service desks remained shut at many PSBs

However, digital banking services, including UPI, mobile banking and internet banking, continued to function normally. ATM services were operational in most locations, though banks cautioned that localised cash shortages could arise due to logistical delays.

Major private sector banks such as HDFC Bank, ICICI Bank and Axis Bank reported minimal impact, as their employees are not part of the striking unions.

Banks issue advisories

Several public sector lenders, including State Bank of India (SBI), informed stock exchanges about the potential disruption.

“While the bank has made arrangements to ensure normal functioning, work may be impacted due to the strike,” SBI said in a regulatory filing.

Broader implications

Industry observers note that such nationwide disruptions underline the dependence of daily economic activity on public sector banking infrastructure. Experts also point out that accurate internal reconciliations and real-time transaction tracking - supported by disciplined practices like Bookkeeping services in India - become especially critical during operational slowdowns, helping businesses maintain financial continuity despite service interruptions.