Bank unions across India have put a hold on their anticipated two-day nationwide strike that was scheduled for March 24 and 25, 2025. The decision to postpone the strike came after positive reassurances from the Indian Banks’ Association (IBA) and the Finance Ministry regarding the unions' demands. As a result, banks in the country remained operational today.
This strike was initially called by the United Forum of Bank Unions (UFBU), which represents nine bank employees’ associations. The UFBU highlighted the need for urgent operational changes, citing unresolved issues despite numerous discussions with the IBA. Among their key demands was the immediate withdrawal of recent directives from the Department of Financial Services (DFS) concerning performance reviews and performance-linked incentives (PLI), which they argue are detrimental to the spirit of their work.
“The IBA has proposed further discussions on recruitment, PLI, and other key issues,” stated CH Venkatachalam, the General Secretary of the All India Bank Employees Association (AIBEA). He further mentioned that during the conciliation meeting led by the Chief Labour Commissioner, a commitment was made to actively monitor the implementation of a five-day banking week—a key demand raised by bank employees.
The call for the strike emerged from broader frustrations within the banking sector regarding working hours and workloads. One of the major requests was instituting a five-day work week, which many argue is essential for improving employees' work-life balance and overall productivity. According to employees, a shortened work week would allow them more family time and serve to enhance their productivity. Comparatively, other sectors—like the central government, Reserve Bank of India (RBI), Life Insurance Corporation (LIC), courts, and many private entities—have adopted a five-day work week, setting a precedent that banking should similarly follow.
In a recent statement, the UFBU underscored that the bank employees are prepared to adjust their schedules to accommodate a potentially shorter week—they have expressed readiness to work an additional 40 minutes each day, which they believe would make the transition smoother for both employees and customers.
Interestingly, the negotiations have not only highlighted issues concerning working hours but also the broader call for systematic change in recruitment strategies within the banking sector. Many banking institutions have struggled with staffing shortages, which has led to increased pressure on existing employees to manage workloads. As the demand for responsive banking services grows, there is a pressing need for banks to recruit more staff while improving working conditions, emphasizing the urgency of these negotiations.
The Chief Labour Commissioner has assured that the discussions will be monitored closely, with the UFBU formally expecting a follow-up meeting to take place on April 22, 2025. The outcome of this meeting could prove to be consequential for the future of banking operations and employee welfare.
Although banks will remain open during the postponement period, it is important to note that digital banking facilities—including online banking, ATMs, and mobile banking—will continue to be operational even during holidays. However, physical branch services will not be available during those times, which further underscores the shift towards digital services amidst evolving consumer expectations.
The IBA will provide a progress report on UFBU's demands, but the direction in which these negotiations will lead remains to be seen. While both sides express readiness to engage and address concerns, the urgency of these issues can not be overstated. With expectations on the rise for reliable banking services paired with employee welfare, the outcomes of these discussions will shape the future framework of banking in India.
This pause to the strike is a significant moment, indicating a willingness from both sides to work towards common ground. The hope is that through continued dialogue and cooperation, the banking community in India can better serve its employees and customers alike, fostering a more productive environment.
