New Delhi: The Finance Ministry on Monday urged bank employees to refrain from resorting to strikes and resolve their remaining demands through dialogue, saying most concerns of the unions have been substantially addressed.
The appeal from the government comes ahead of a three-day nationwide strike called by the United Forum of Bank Unions beginning September 28 to press for 5-day banking and other demands.
“The proposed 3-day strike period, from 28th to 30th Sept 2026, also coincides with the half-yearly closing of banks on 30th September,” the ministry said in a statement on Monday.
The half-yearly closing is significant for reconciliation, provisioning, and treasury and market operations, the ministry said, adding that disruption during the period could affect customers, businesses, government transactions and international banking operations.
The ministry said the United Forum of Bank Unions and certain other unions and associations in PSBs and RRBs had called the strikes over two principal demands: implementation of a five-day banking week and withdrwal of the performance-linked incentive (PLI) scheme.
The government said it had already decided to keep the PLI scheme in abeyance after detailed discussions, describing the move as fulfilment of one of the two principal demands.
“Following this, the government held several rounds of conciliation to address the outstanding issues through dialogue, in keeping with the established practice of resolving differences bilaterally,” the ministry said.
Despite the government’s decision on PLI and continued discussions, a one-day strike was held on 11 September, while a three-day strike has now been scheduled from 28-30 September. An indefinite strike has also been proposed from 26 October, with the five-day workweek now the unions’ sole outstanding demand, the ministry said.
The government said it had taken several measures in recent years to improve the working conditions and welfare of bank employees, including higher salaries and allowances, revised pay scales for all cadres, an enhanced Staff Welfare Fund and an increase in executive posts, the ministry said.
The Staff Welfare Fund, which supports health expenses, canteen subsidies, sports and cultural activities, and education-related assistance, was enhanced by 56% in August 2024, the ministry said.
Recruitment in PSBs has also increased between FY2014-15 and FY2025-26, with recruitment around 482,800, the ministry said, adding that recruitment has doubled over the last three years. As of 1 July, 95.84% of officer positions and 92% of subordinate/award staff positions were filled, it said.
The government also highlighted changes to recruitment and promotion processes, including Aadhaar authentication, streamlined declaration of recruitment results, and online systems for transfers and promotions, it said.
The ministry also cited several employee-welfare measures, including special leave for women employees, changes to pension benefits for retirees and family pensioners, a revised medical insurance policy for retirees and higher conveyance allowance for employees with disabilities.
The ministry said PSBs play a critical role in the country’s economic and social development through financial inclusion, digital banking, financial literacy and rural outreach.
“Banking as a service is relied upon by every citizen, and its continuity directly affects the everyday lives of the general public,” the ministry said.
The government also pointed to the decision in 2015 to declare the second and fourth Saturdays of every month as public holidays for PSBs, while the remaining Saturdays continue to provide an opportunity for customers to access banking services.
The ministry said a disruption around the September-end closing could affect the functioning of banks at a crucial point in the financial year.
“Strikes cause disruption in banking services that inconvenience the public, impact the business of the bank, and ultimately harm the interests of bank employees,” it said.
The government said it remained committed to addressing employee concerns through dialogue and constructive engagement.
“Given that most concerns of the Unions have been substantially addressed, that the remaining demand continues to be examined, and that the Government continues to proactively introduce welfare measures for the banking workforce,” the ministry said, adding employees should refrain from striking and resolve outstanding issues through dialogue.
The ministry urged employees to ensure that banking services remain uninterrupted during the proposed strike period.
