Why was the 3-day bank strike deferred? What bank customers need to know now

The nationwide bank strike planned for September 28 to 30 was deferred after the IBA and UFBU reached an understanding. The move shifts the dispute to fresh talks on Saturday holidays, the PLI scheme and other pending issues.Strike deferred but core demands still under negotiation. New Delhi,Sep 28, 2026 10:26 ISTThe three-day nationwide bank strike scheduled from September 28 to 30 has been deferred after the Indian Banks' Association (IBA) and the United Forum of Bank Unions (UFBU) reached an understanding late on Sunday, September 27.The key reason for the deferment was the decision to immediately set up a high-level committee of the IBA and UFBU to discuss the demand for declaring all remaining Saturdays as holidays.The UFBU, an umbrella body of nine bank employee and officer unions, announced the decision in a circular issued on September 27 after a meeting with the IBA at 9.30 pm.The circular, titled “UNDERSTANDING REACHED WITH IBA – OUR STRIKE ACTION AND AGITATION DEFERRED”, said the two sides had reached an understanding on the key issues that had led to the proposed strike. The union body said the high-level committee would look at the issue of declaring the remaining Saturdays as holidays, explore possible alternatives and consult all stakeholders, including customers.The circular said, “A high-level committee of IBA and UFBU will be formed immediately to deliberate on the issue of declaring the remaining Saturdays as holidays. This committee will explore, all possible alternatives; discuss with all stakeholders, and work out a solution acceptable to all stakeholders and, more importantly, the customers.” This was the main development that led the unions to defer the strike.FIVE-DAY BANKING WEEK DEMAND TO BE DISCUSSEDThe demand for a five-day banking week has been at the centre of the unions' agitation.At present, bank branches are generally closed on Sundays and the second and fourth Saturdays of every month. The unions have been demanding that all Saturdays be declared holidays.The latest understanding does not mean that the five-day banking week has been approved. Instead, the issue will now be taken up by the newly formed IBA-UFBU committee.The committee will also examine possible alternatives and discuss the matter with stakeholders before working out a solution.This means the immediate strike has been deferred, while discussions on the core demand will continue.PLI ISSUE ALSO TO BE DISCUSSED WITH GOVERNMENTThe performance-linked incentive (PLI) scheme for Scale IV and above officers was another issue behind the agitation.The UFBU circular said discussions on this issue can now begin with the participation of the government.The circular said, “As regards the PLI Scheme for Scale IV and above officers, the discussions can start with the participation of the Government in the scheme to address the observations of the Unions/Associations.”This allows the unions and the banking industry to resume discussions on the concerns raised over the PLI scheme, with the government also participating.The understanding between the IBA and UFBU also covers other unresolved matters.The union circular said, “The residual issues as listed in the minutes dated 8.3.2024 will be discussed between the parties for expeditious resolution.”The reference is to the residual issues recorded in the minutes dated March 8, 2024.The bank unions had also raised issues related to pension, dearness allowance and the demand for changes concerning the National Pension System and restoration of the old pension system as part of their wider agitation.WHY DID THE UNIONS DEFER THE STRIKE?The immediate trigger for the deferment was the willingness of the IBA to enter into structured discussions on the remaining Saturday holidays, along with discussions on the PLI scheme and other pending issues.The UFBU said the understanding reached during the late-night meeting provided enough basis to defer the planned agitation.The final point of the circular states, “In view of the above, it was agreed by the UFBU that the proposed agitational programmes and strike actions will be deferred.”The wording is important. The strike has been “deferred”, rather than the underlying demands being settled or withdrawn.The five-day banking week has not yet been implemented, and the new committee will now examine the issue.The immediate three-day strike will not go ahead as originally planned from September 28 to September 30.The next step will be the formation of the high-level IBA-UFBU committee and discussions on declaring the remaining Saturdays as holidays.The committee is expected to examine different options and consult stakeholders, with the UFBU circular specifically mentioning customers.At the same time, discussions on the PLI scheme for Scale IV and above officers will begin with government participation, while the residual issues listed in the March 8, 2024 minutes will also be taken up.For bank customers, the immediate takeaway is that the planned three-day strike has been deferred. However, the issues that led to the strike remain under discussion and have not all been resolved.SEO/AEO keywords:- Ends