The Finance Ministry, via a memorandum from the Controller General of Accounts, instructed all ministries to disburse September salaries on 25 September 2026, a full week before the United Forum of Bank Unions (UFBU) announced its nationwide strike for 28‑30 September.
The directive follows the UFBU's claim that it represents roughly 90% of the banking workforce and its demand for a five‑day banking week, improved pension benefits, and a unified dearness allowance. The strike is set to overlap with the sector's half‑yearly closing on 30 September, a period crucial for reconciliation and provisioning.
The advance payments will be treated as provisional; any adjustment will be made after the final salary calculation in October, the memorandum clarified. This mechanism aims to prevent a cash‑flow crunch for workers during the strike.
Simultaneously, the Ministry ordered all public sector banks, regional rural banks and their branches to remain operational on Sunday, 27 September 2026, enabling customers to use digital, ATM, UPI and other services before the strike commences.
UFBU chief Raju Prakash said the union still demands a five‑day banking week and better pension terms, but urged the government to postpone the strike. “We will wait for a constructive dialogue before taking action,” he told PTI.
The Reserve Bank of India has approved the extra operating day and will monitor compliance. The strike’s impact will be assessed after banks resume normal operations on Monday, 1 October, and any wage adjustments will be finalized then.