Banking operations across India are expected to face disruption on September 11 after bank employee unions called a nationwide strike over issues including the long pending demand for a five day banking week and concerns surrounding the revised Performance Linked Incentive scheme.
The strike has been announced by the United Forum of Bank Unions, an umbrella organisation representing major bank employee and officer unions. The unions have been pressing for changes in working conditions and compensation related matters while also raising concerns over the implementation of the PLI system.
One of the main demands is the implementation of a five day working week for banks. Bank employees have been seeking a system under which branches and offices would operate from Monday to Friday, with Saturdays and Sundays treated as weekly holidays. The demand has been under discussion for several years, but its implementation has remained pending.
Bank unions argue that a five day working system would bring banking employees closer to working arrangements followed in several other sectors. They have also linked the demand to improved work life balance and working conditions for employees.
Another major issue behind the planned strike is the Performance Linked Incentive scheme for public sector banks. The PLI system is designed to link employee incentives with the performance of individual banks and other specified parameters.
Employee organisations have raised objections to the revised structure and have sought a review of the changes. According to reports, concerns raised by employees contributed to the Centre's decision to defer implementation of the PLI scheme for public sector banks for the 2025 to 26 financial year.
The decision to defer the scheme has not ended the disagreement. Bank unions continue to seek further discussions on the structure and implementation of performance linked incentives.
The September 11 strike could affect customers who depend on physical branches for banking transactions. Services such as cash deposits and withdrawals, cheque related work, account related requests and other branch based services could face delays depending on the level of participation in the strike.
Several major banks have already advised customers to plan important transactions in advance. State Bank of India, for example, has advised customers to complete important banking activities before the strike and make use of digital channels for routine transactions where possible.
Digital banking services such as internet banking, mobile banking, UPI and ATMs are generally expected to continue operating. However, customers could still experience occasional difficulties depending on technical availability, cash replenishment and other operational factors.
The impact of the strike may also vary between banks and regions because participation depends on employee unions and their members. Reports from different parts of the country have indicated the possibility of significant disruption at branches and offices.
In Gujarat, for example, reports have indicated that around 5,400 bank branches could remain closed during a three day strike beginning September 11, with a substantial volume of transactions potentially affected.
For customers, the strike means that transactions requiring physical interaction with bank employees may need to be completed before the strike or postponed until normal operations resume. Businesses that regularly depend on branch services for cash management, cheque processing and other activities may also need to make advance arrangements.
The proposed five day banking week is not the only issue being raised by the unions. Bank employee organisations have also raised broader concerns about staffing, working conditions, public sector banking and employee rights. The unions have argued that adequate staffing is important for maintaining customer service, particularly at branches handling large numbers of customers.
The PLI issue has added another dimension to the dispute. While performance based incentives are intended to encourage efficiency and stronger financial performance, employee organisations have questioned aspects of the revised structure and its implementation.
The government's decision to defer the PLI scheme provides an opportunity for further discussions between the authorities, banks and employee representatives. However, the unions have continued with their planned industrial action while seeking a resolution to their demands.
The strike comes at a time when India's banking sector is undergoing significant changes. Public sector banks are increasingly focusing on digital services, operational efficiency, technology adoption and improved financial performance. At the same time, employee organisations continue to highlight the importance of adequate staffing and sustainable working conditions.
The planned strike therefore reflects a wider debate about how India's banking industry should balance productivity, employee welfare and customer service.
For ordinary customers, the immediate concern is likely to be the availability of branch services on September 11. Those with urgent banking requirements may benefit from completing them before the strike date or using digital alternatives wherever possible.
Customers should also remember that a bank strike is different from a regular bank holiday. The extent of disruption depends on participation by employees and the operational arrangements of individual banks.
The September 11 action is therefore expected to be closely watched by customers, businesses, bank managements and policymakers. The outcome could also influence future discussions over the five day working week and the structure of performance linked incentives in public sector banking.