Nagpur: Banking operations at public sector banks across the country were impacted on Tuesday, January 27, 2026, as the United Forum of Bank Unions (UFBU) went on nationwide strike demanding the immediate implementation of a five-day work week.
The strike call by the UFBU, an umbrella body of nine unions representing officers and employees, comes after a conciliation meeting with the Chief Labour Commissioner on January 23, 2026, failed to yield a positive outcome. “Since there was no positive outcome and the government did not agree to our demand, hence this strike is forced on us. Bank employees and officers are highly aggrieved that they alone are being discriminated against,” All India Bank Employees Association (AIBEA), a constituent of UFBU, General Secretary C.H. Venkatachalam told a news agency.
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Most branches of public sector banks across the country were either completely closed or partially closed as both employees and officers were observing Tuesday’s strike.
The industrial action comes at a sensitive time for customers, as January 25 was Sunday and January 26 were already non-working days for most banks due to the Republic Day. Many customers could face interruptions in branch-level banking services for three consecutive days.
While banks are technically scheduled to be open today, services at many public sector bank branches are expected to be affected due to the strike. Several state-owned banks have cautioned customers in advance that normal operations may be disrupted if a large number of employees participate in the protest.
Services such as cash deposits, withdrawals, cheque clearances, and administrative work are hit at branches of all public sector banks (PSBs) and some old generation private sector banks. However, operations at major private sector lenders such as HDFC Bank, ICICI Bank, and Axis Bank are expected to remain largely unaffected as their employees are not part of the striking unions.
Digital banking services, including UPI and internet banking, will continue to function, though ATM cash availability could face localised issues owing to logistical delays. Several public sector lenders, including the banking giant SBI have informed stock exchanges about the potential impact.
“We advise that while the bank has made necessary arrangements to ensure normal functioning in its branches and offices on the day of strike, it is likely that work in the Bank may be impacted by the strike,” SBI said in a regulatory filing on Friday (January 23, 2026).
The unions are demanding the declaration of all Saturdays as holidays, a key point that was reportedly agreed upon during the 12th Bipartite Settlement signed with the Indian Banks’ Association (IBA) in March 2024 but is awaiting government notification. Currently, banks remain open on the first, third, and fifth Saturdays of the month.
UFBU has also pointed out that during the wage revision settlement signed in March 2024, it was agreed with the Indian Banks’ Association that all Saturdays would eventually be treated as holidays. The unions claim the government has since not taken concrete steps to implement the understanding. Union leaders have maintained that a five-day banking system would not reduce productivity.
Earlier, UFBU stated that employees are willing to work an additional 40 minutes each day from Monday to Friday to ensure there is no loss of working hours or customer service. “It is unfortunate that the government is not responding to our genuine demand,” UFBU had said, stressing that the proposal balances employee welfare with operational efficiency.
