The clarification comes as bank employee unions prepare to go on strike over several pending demands, with the implementation of a five-day banking week remaining one of their key issues. The United Forum of Bank Unions (UFBU) has maintained its strike call despite appeals from the government and bank managements to resolve the remaining issues through dialogue.

The proposed strike also coincides with the half-yearly closing of banks on September 30, raising concerns about disruption to branch operations and customer services.

Finance Ministry rejects five-day banking commitment

According to government sources cited by PTI, the Finance Ministry has made it clear that it has not committed to implementing a five-day work week in the banking sector.

The UFBU, which represents a large section of bank employees and officers, has argued that the Indian Banks' Association (IBA) agreed to the five-day banking arrangement as part of the 12th Bipartite Settlement and 9th Joint Note signed on March 8, 2024.

Under the proposal, banks would remain closed on Saturdays, while working hours from Monday to Friday would be increased by 40 minutes to compensate for the additional working day being removed.

The proposal was subsequently forwarded to the government and remains under consideration. The Finance Ministry's position, however, is that no commitment has been made to implement the arrangement.

The issue remains the principal unresolved demand behind the latest strike call. The Indian Express has reported that bank branches currently remain closed on the second and fourth Saturdays, while unions are seeking holidays on all Saturdays.

Strike scheduled from September 28 to 30

The UFBU has called a three-day nationwide strike from September 28 to 30. The unions have maintained that the action will go ahead unless there is concrete progress on their demand for five-day banking.

The Finance Ministry had earlier appealed to bank employees to refrain from the strike and resolve the remaining issues through discussions. The government said several concerns raised by the unions had already been addressed, while the five-day banking proposal continued to be examined.

The timing of the strike is particularly important because September 30 marks the half-yearly closing of banks. The government and bank managements have consequently been preparing contingency measures to limit the impact on customers.

Several union demands addressed

Government sources said some of the issues raised by bank unions have already been resolved.

These include an increase in family pension for bank retirees and the introduction of a pension option for employees who resigned.

The Performance Linked Incentive (PLI) scheme, another major issue raised by the unions, has also been kept in abeyance, according to government sources.

The Finance Ministry has pointed to these measures while urging employees to reconsider the strike and continue negotiations on the remaining demands.

The Department of Financial Services has also maintained a crisis management framework for industry-wide banking strikes, including measures aimed at protecting critical infrastructure and ensuring the continuity of essential banking operations.

Government plans Sunday banking to reduce disruption

In view of the proposed strike, the government has taken steps to reduce the impact on customers.

Public sector banks (PSBs) and Regional Rural Banks (RRBs) will remain open on Sunday, September 27, a day before the strike begins. The Department of Financial Services said the move was intended to ensure that customers' banking requirements were not affected for an extended period.

The Reserve Bank of India has approved the operation of bank branches, offices, ATM-linked branches and currency chests on September 27.

The decision is particularly relevant because September 26 is a Saturday followed by Sunday, September 27. Without the additional working day, customers could otherwise face a prolonged interruption in branch-based services.

Banks have also advised customers to complete important branch-related transactions ahead of the strike and use digital banking facilities and self-service channels where possible.

Government salaries and pensions to be paid early

The Finance Ministry has also taken steps to ensure that salary and pension payments are not affected by the strike.

According to an office memorandum issued by the Controller General of Accounts, September 2026 salaries and wages of Central Government employees may be drawn and disbursed on September 25.

The measure covers employees working in Central Government offices, including those in Defence, Posts and Telecommunications.

September pensions for Central Government pensioners may also be disbursed on September 25. Wages of industrial employees of the Central Government may similarly be paid in advance.

The advance payment is intended to prevent the proposed strike from affecting routine salary and pension disbursements.

Unions have several other demands

While five-day banking is currently the most prominent unresolved issue, the UFBU has raised several other demands concerning employees and pensioners.

These include measures for updating and improving pension benefits, a uniform dearness allowance formula for all pensioners and an option for employees covered under the National Pension System to shift to the old pension scheme.

The unions have also sought changes concerning working conditions and other service-related matters.

The government, meanwhile, has said that most of the concerns have already been substantially addressed and has called for the remaining issues to be settled through dialogue.

What the five-day banking proposal means

The proposed five-day banking arrangement would make Monday to Friday the regular working days for bank employees, with Saturdays becoming holidays.

To compensate for the additional weekly holiday, employees would work for an additional 40 minutes each day from Monday to Friday under the proposal cited by the unions.

The proposal was part of the wage revision settlement involving the IBA and bank unions in 2024, but its implementation requires government approval. The latest Finance Ministry position makes clear that the proposal remains under consideration rather than being an agreed policy.

With the September 28-30 strike approaching, the issue remains unresolved between the government, the IBA and bank unions.

The immediate concern for customers is therefore possible disruption to branch-based banking services during the three-day strike, even as digital and self-service channels are expected to remain available subject to individual bank operations.