The proposed three-day nationwide bank strike from 28th September to 30 September 2026 has been deferred after the Indian Banks' Association (IBA) and the United Forum of Bank Unions (UFBU), an umbrella body representing seven bank employee and officer unions, reached an understanding on key demands, including the long-pending call for a five-day banking week.
The decision came after a late Sunday night meeting between the IBA negotiating committee and UFBU leadership, just hours before the strike was scheduled to begin. The two sides agreed to establish a high-level committee to examine the demand to declare all remaining Saturdays as holidays for bank employees.
The development means public sector bank (PSB) branches are expected to function normally from Monday, removing the immediate threat of a three-day disruption that had coincided with the month-end and half-yearly closing period. The proposed strike was scheduled from 28th September to 30 September 2026.
Five-day Banking at the Centre of Talks
The demand for a five-day banking week has been the key issue behind the latest round of industrial action by bank unions. At the meeting, UFBU leaders pressed the IBA to take up their demands on priority, with the implementation of five-day banking specifically highlighted.
The agreement to create a joint high-level committee marks a shift from the position earlier in September, when the unions had said the three-day strike would proceed after talks failed to produce sufficient progress on the issue.
The new committee will comprise representatives of the IBA and UFBU. Its mandate is not simply to discuss the demand but to examine different options for declaring the remaining Saturdays as holidays and to consult all stakeholders before arriving at a proposal.
For customers, the issue is significant because banks currently observe holidays on the second and fourth Saturdays of the month, while other Saturdays are working days. The union demand seeks to extend the holiday arrangement to all Saturdays.
PLI Scheme for Senior Officers Also on Agenda
The two sides also agreed to open discussions on the performance linked incentive (PLI) scheme applicable to Scale IV and above officers.
Under the understanding reached on Sunday, the IBA will hold discussions with the unions on possible modifications to the scheme and, based on those discussions, take up the proposed changes with the government.
The PLI issue has been among the concerns raised by bank officers' unions as part of the wider agitation.
The IBA-UFBU meeting will also take up other unresolved matters listed in the minutes of discussions held on 8 March 024, with both sides agreeing to work towards their early resolution.
The agreement came after several rounds of discussions as the three-day strike from 28th September to 30 September 2026 approached. On 23rd September, IBA met UFBU leaders and acknowledged the contribution of bank employees and officers to the growth of PSBs. The sides had agreed at that stage to continue negotiations rather than immediately settle the strike issue.
With the deadline approaching, the two sides met again on 27th September. The latest meeting resulted in the decision to defer the planned agitation and strike action.
The UFBU comprises All-India Bank Employees' Association (AIBEA), All India Bank Officers' Confederation (AIBOC), National Confederation of Bank Employees (NCBE), All India Bank Officers' Association (AIBOA), Bank Employees Federation of India (BEFI), Indian National Bank Employees' Federation (INBEF) and Indian National Bank Officers' Congress (INBOC).
Banks Remain Open on Sunday Ahead of Proposed Strike
The last-minute agreement came a day after PSBs and regional rural banks (RRBs) opened branches on Sunday, 27 September 2026, to help customers complete essential banking work ahead of the proposed strike.
The special Sunday opening was arranged after the government asked banks to ensure that customers did not face an extended disruption, given that 26th September and 27th September were already weekend holidays and the proposed strike was to begin on 28 September 2026.
The Union ministry of finance (MoF) said earlier that all PSBs and RRBs would function normally on 27th September, with Reserve Bank of India (RBI) permitting bank branches, offices, ATM-linked branches and currency chests to remain operational.
Several major public sector banks, including State Bank of India, Punjab National Bank and Bank of Baroda, had therefore made branches available to customers on Sunday.
The Sunday opening was also aimed at reducing the potential impact of the proposed strike on banking services, particularly as 30th September marks the end of the half-year for banks. The government had urged banks and unions to take steps to minimise inconvenience to customers.
Strike Deferred, Not Demands Settled
The latest development does not amount to a final settlement of the unions' demands. Instead, the immediate strike has been deferred while the IBA and UFBU move the contentious issues into a fresh negotiation process.
The most closely watched issue will be the committee's work on all-Saturday holidays and whether it can produce a proposal acceptable to the banking industry, employees and customers.
For now, however, the immediate disruption planned for 28th September to 30 September 2026 has been averted, with the focus shifting from strike action to negotiations on five-day banking, the PLI scheme for senior officers and the remaining issues pending between the two sides.
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