Indian Banks Face Five-Day Freeze as Unions Dig In for National Strike

India's banking sector is bracing for a potential five-day disruption starting September 26, as the United Forum of Bank Unions (UFBU) pushes ahead with a three-day nationwide strike from September 28 to 30. This critical action, following a weekend closure, is fueled by long-standing demands for a five-day banking week and the withdrawal of a revised Performance Linked Incentive (PLI) scheme, despite the Finance Ministry appeals for dialogue. The unions, representing nearly 90% of the banking workforce, claim the five-day work week was agreed upon in a March 2024 settlement, yet remains unimplemented. Furthermore, they argue the government's revised PLI scheme, issued in August, is 'unilateral and discriminatory,' prompting a pending legal challenge in the Delhi High Court. Conciliation talks on September 22 with the Deputy Chief Labour Commissioner failed to yield a breakthrough, with UFBU general secretary C.H. Venkatachalam reiterating 'no backing down' without firm commitments. With the strike coinciding with banks' half-yearly closing, customers are urged to complete urgent transactions early. Public sector banks and Regional Rural Banks will notably operate on Sunday, September 27, in a government-backed effort to mitigate disruption. While digital banking channels like UPI and ATMs are expected to function, the broader economic impact and the threat of an indefinite strike from October 26 loom large if the impasse continues.