Finance Ministry Urges Banks to Avoid UFBU’s 28‑30 September Strike

Finance Minister Nirmala Sitharaman told reporters that bank employees should not strike during the UFBU‑called 28‑30 September walkout, adding that the majority of the unions’ demands have been addressed. The unions, led by the United Forum of Bank Unions, are pressing for a five‑day banking week and the removal of the Performance‑Linked Incentive (PLI) scheme. Earlier this month, the government announced it would keep the PLI scheme on hold while it continued to discuss the week‑long work schedule.

The upcoming strike follows a one‑day walkout on September 11 that saw a handful of banks shut for a day. The 28‑30 September strike would overlap with the banks’ half‑yearly closing on the 30th, a period when reconciliation, provisioning and treasury activities intensify. Because the strike would begin on a Friday, branch‑based services could effectively be closed for five days, potentially disrupting customer and business transactions, as well as international banking operations.

To placate the workforce, the finance ministry highlighted several welfare measures. It has lifted salaries, finalized new pay scales for all cadres, increased the Staff Welfare Fund and expanded executive posts from assistant general manager to chief general manager. According to the ministry, 4.82 lakh employees were recruited between FY2014‑15 and FY2025‑26, with 95.84% of officer positions and 92% of subordinate and award staff positions filled as of July 1.

State Bank of India and Union Bank of India have advised customers to complete branch‑related transactions before the strike and to use ATMs, internet and mobile banking, UPI and other digital channels. The banks also warned that some branch operations would be affected during the three‑day period. The government reminded that public sector banks play a key role in financial inclusion and rural outreach, and stressed the need to keep services running while negotiations continue.

The finance ministry has begun talks for a Bipartite Settlement, with a deadline set for November 2027, aimed at revising bankers’ salaries and allowances on time. It also intends to finalize the remaining demand for a five‑day workweek before the strike commences. The ministry will convene a committee next week to assess the feasibility of the unions’ requests and will update the public on its position.