Banking services across India are set to face significant disruptions as the United Forum of Bank Unions (UFBU) has announced a nationwide strike on March 24 and 25, 2025. The escalation follows unsuccessful negotiations with the Indian Banks’ Association (IBA), where unions representing over eight lakh bank employees expressed concerns over various long-standing issues.
The strike is expected to cause banking operations to be unavailable for four consecutive days, largely due to the serendipitous fall of the strike days on a Monday and Tuesday following a weekend of scheduled holidays, with March 22 being the fourth Saturday and March 23 a Sunday. Thus, the banks will remain closed from March 22 to March 25, 2025, amplifying the potential impact on various banking services.
This decision to strike comes amid a backdrop of frustration, as the UFBU—the umbrella organization comprised of nine major bank unions such as the All India Bank Employees Association (AIBEA) and the National Confederation of Bank Employees (NCBE)—has emphasized their needs through a list of critical demands. Key among these are adequate recruitment to fill staffing shortages, the regularization of temporary workers, and the institution of a five-day work week across banks and government institutions.
In addition to workweek reforms, the unions are pushing for stronger safeguards for bank employees against misconduct or violence from customers, as well as the abolition of the controversial Performance-Based Incentive (PLI) scheme that they argue jeopardizes job security. Other essential requests include raising the gratuity ceiling to ₹25 lakh, aligning it with government employee standards, and halting the outsourcing of permanent jobs within the banking sector.
Pankaj Kapoor, Vice President of the All India Bank Officers’ Confederation (AIBOC), stated, “Banking services like clearing house, cash transactions, remittances, and advances will be affected for four days starting from March 22.” He further emphasized that even though digital banking facilities such as internet banking and ATM withdrawals would remain active during the strike, they might still face delays, especially concerning higher-value transactions.
The unions convened in a conciliation meeting at the Chief Labour Commissioner’s office on March 18, 2025, where discussions with the IBA were held, but tensions escalated when no agreement was reached. With ongoing dissatisfaction over personnel safety and low job security, the unions felt compelled to take a stand.
UFBU General Secretary Rupam Roy conveyed, “We have been left with no choice but to strike. We urge the public to support us and bear with any inconvenience.” As the dates draw closer, customers are being advised to prepare accordingly, ensuring that all necessary transactions are completed by March 22.
Given the reach of the UFBU—which represents public, private, foreign, cooperative, and regional rural banks—the impact is anticipated across the board. Reports suggest that major banks like State Bank of India (SBI), Punjab National Bank (PNB), and others, although currently silent on the implications of the strike, are expected to face substantial interruptions.
In a context where bank workers have increasingly raised alarms about labour practices, this strike emerges as a culmination of ongoing frustrations. Stakeholders have been calling for increased recruitment across all job levels, improved working conditions, and protection from violence—a sentiment that resonates strongly among employees in a sector that has witnessed increasing instances of customer aggression.
The unions have underscored their criticism of the government's interference in managing public sector banks, arguing that recent policy directives have undermined the autonomy of bank boards. This ‘micromanagement’ by the government has been cited as further justification for the impending strike.
Alongside calls for institutional change, bank unions are also demanding the withdrawal of the recent directives concerning performance reviews and the PLI scheme, which they assert are destabilizing and threaten the security and rights of the workers. The situation has now reached a critical juncture where unions believe that only through striking can they garner the necessary attention to their plight.
As preparations for the strike unfold, bank customers are encouraged to explore alternative banking solutions ahead of the scheduled holiday weekend. Understanding the full breadth of implications, both for retail consumers and corporate banking clients, will help ensure financial needs can be met while avoiding the disturbances expected from the strike.
The next scheduled discussions on these matters are set for March 21, and further developments should be closely monitored as both sides navigate their positions. Whether the impending strike will prompt the IBA to reconsider its stance remains to be seen, but the UFBU's resolve is evidently firm.
This strike not only signals the pressing need for dialogue and understanding in the labor landscape of banking but is also a pivotal moment for the rights and welfare of bank employees strategically situated at the frontlines of India's financial framework.
