'Demand still being examined, refrain from strike': Finance Ministry urges bank employees

The Finance Ministry on Monday urged bank unions to withdraw their call for a three-day strike, saying their remaining demand for a five-day workweek was still being examined.

The United Forum of Bank Unions and other unions and associations in public sector banks, supported by Regional Rural Banks, have called a strike from September 28 to 30. They have also proposed an indefinite strike from October 26.

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The unions had raised two main demands - implementation of a five-day banking week and withdrawal of the Performance Linked Incentive (PLI) scheme.

The government has already kept the PLI scheme in abeyance after discussions with the unions, the ministry said.

"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, bank employees are urged to refrain from resorting to strikes, work towards resolving issues through dialogue, and ensure that banking services remain uninterrupted," the ministry said in a detailed statement.

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The finance ministry noted that the proposed three-day strike period, from 28th to 30th Sept, also coincides with the half-yearly closing of banks on 30th September, a date of particular significance for reconciliation, provisioning, and treasury and market operations.

"A disruption of this nature, combined with the preceding weekend, would result in an effective five-day closure of banking services at a particularly sensitive point in the financial calendar - causing considerable inconvenience to customers, businesses, government transactions, and international banking operations," it said.

The ministry also stressed that banking services are relied upon by every citizen and that their continuity directly affects everyday life.

"Banking as a service is relied upon by every citizen, and its continuity directly affects the everyday lives of the general public," it said. "In the interests of bank employees, the Government declared the 2nd and 4th Saturdays of every month as public holidays for Public Sector Banks in 2015. The remaining Saturdays continue to serve as an important opportunity for many citizens to access banking services easily."

Government says it addressed one key demand

The ministry said the government held several rounds of conciliation after keeping the PLI scheme in abeyance, with the remaining issues being discussed through dialogue.

Despite this, a one-day strike was held on September 11, followed by the three-day strike planned for September 28-30.

The ministry said the government had taken several measures for bank employees, including higher salaries and allowances, revised pay scales, increased executive posts and streamlined promotion and transfer processes.

The Staff Welfare Fund of public sector banks was also increased by 56% in August 2024, it said.

Recruitment and employee welfare

The ministry said public sector banks recruited about 4,82,800 employees between FY2014-15 and FY2025-26, with recruitment doubling in the last three years.

As of July 1, 2026, 95.84% of officer positions and 92% of subordinate and award staff positions were filled, according to the ministry.

It also cited measures including special leave for women employees, revised family pensions, ex-gratia payments for pensioners, a revised medical insurance policy for retirees, and higher conveyance allowance for employees with disabilities.

The government has also begun negotiations for the upcoming Bipartite Settlement ahead of the November 2027 deadline, the ministry said.