New Delhi [India], September 21 : The government has urged employees of public sector banks and regional rural banks to refrain from the proposed strike and resolve the remaining issues through dialogue, warning that the planned three-day strike from September 28 to 30 could disrupt banking services during the half-yearly closing of banks.
The United Forum of Bank Unions and other unions and associations in public sector banks, supported by regional rural banks, had called for a strike primarily seeking implementation of a five-day banking week and withdrawal of the Performance Linked Incentive (PLI) scheme.
The government said it had already decided to keep the PLI scheme in abeyance after discussions with the unions, thereby addressing one of their two principal demands. Despite several rounds of conciliation, a one-day strike was held on September 11, while a three-day strike has been scheduled from September 28 to 30. An indefinite strike has also been proposed from October 26 over the remaining demand for a five-day workweek.
The government said the September 28-30 strike would coincide with the half-yearly closing of banks on September 30, which is significant for reconciliation, provisioning, and treasury and market operations.
It said the strike, together with the preceding weekend, could effectively result in a five-day closure of banking services, affecting customers, businesses, government transactions and international banking operations.
The government also highlighted measures taken for the welfare of bank employees, including salary and allowance increases, expansion of executive posts and recruitment. Public sector banks recruited around 4.82 lakh employees between FY2014-15 and FY2025-26, with recruitment doubling over the last three years, it said. As of July 1, 2026, 95.84 per cent of officer positions and 92 per cent of subordinate/award staff positions were filled.
Other measures include improved transfer and promotion processes, special leave provisions for women employees, revised family pensions, enhanced medical insurance for retirees and higher conveyance allowance for employees with disabilities.
The government has also begun negotiations for the upcoming Bipartite Settlement ahead of the November 2027 deadline, saying the move is aimed at ensuring timely revision of bankers' salaries and allowances.
The government said the remaining demand for a five-day workweek continues to be examined and urged employees to ensure uninterrupted banking services while resolving the issue through constructive engagement.