Nationwide bank strike today affects cash withdrawals, cheque clearing, and loans as UFBU demands a five-day work week. Details inside.

New Delhi: On the first working day after Republic Day, bank customers across India are facing major inconvenience as banking services have been disrupted due to a one-day nationwide strike. The strike has been called by the United Forum of Bank Unions (UFBU) to protest the delay in implementing a five-day work week for banks.

Nearly 10 lakh bank employees and officers are participating in the protest, making it one of the largest coordinated actions by bank unions in recent years. As a result, many bank branches are closed, and counter services are unavailable. The strike on January 27, 2026, has also extended the long holiday weekend’s impact, affecting services such as cash withdrawals, cheque clearing, and loan approvals.

Strike Call: UFBU Pushes for Immediate 5-Day Banking Week

The strike has been organised under UFBU, which is an umbrella body of nine major bank unions. These include the All India Bank Employees Association (AIBEA), the All India Bank Officers’ Confederation (AIBOC), and the National Confederation of Bank Employees (NCBE). Their main demand is that all Saturdays should be declared bank holidays.

This decision came after conciliation meetings with the Indian Banks’ Association (IBA) held on January 22 and 23 failed to reach any solution. Bank unions rejected further delays and decided to go ahead with the strike.

Union leaders have said the protest was unavoidable. UFBU stated, “A five-day work week is not a special favour. It is a long-pending reform, and the commitment has already been made. It must now be implemented.” The Canara Bank Officers’ Federation (CBOF) also said that repeated promises, protests, and even postponing an earlier strike had not helped, which led to growing frustration among bank staff.

Background: From 2015 Agreements to the Current Deadlock

The demand for a five-day work week has existed for many years. In 2015, the 10th Bipartite Settlement introduced the concept of alternate Saturdays being holidays. Later, the issue gained momentum when the 12th Joint Note was signed in December 2023.

This was followed by a formal agreement on March 8, 2024, between the IBA and bank unions. Under this agreement, bank employees agreed to work longer hours on weekdays in return for all Saturdays being declared holidays.

However, the change requires an official notification from the government under the Negotiable Instruments Act. This notification has been pending with the Department of Financial Services under the Ministry of Finance for more than 800 days. Bank unions have pointed out that institutions such as the Reserve Bank of India (RBI), Life Insurance Corporation (LIC), and central government offices already follow a Monday-to-Friday work schedule.

Key Demands: More Than Just Weekends

The strike is not only about holidays. Bank unions say it is about fairness, employee well-being, and long-term sustainability of the banking workforce. Bank employees have been handling increasing workloads due to digital banking expansion, financial inclusion schemes like Jan Dhan Yojana, and serious staff shortages.

Retirements are happening much faster than new recruitments, adding to pressure on existing employees. In a press release dated January 25, NCBE described the five-day work week as a “long-pending, justified, and inevitable reform” that is necessary to reduce stress and improve productivity.

The issue has also received international support. UNI Global Union has expressed solidarity with Indian bank employees, calling it part of a global movement to improve working conditions in the banking sector. Importantly, unions have clarified that they are not demanding higher wages or extra benefits. They have agreed to longer weekday hours to ensure customer services are not affected in the long run.

How the Situation Escalated: Key Events Before the Strike

• November 2023: The 12th Bipartite Settlement sets the stage for reforms.
• March 8, 2024: IBA and unions sign an agreement for a five-day work week, pending government approval.
• January 6, 2026: UFBU issues a strike warning due to lack of progress.
• January 14, 2026: Meeting with IBA fails to resolve delays.
• January 22–23, 2026: Conciliation talks collapse, and the strike is confirmed.
• January 25, 2026: Unions intensify awareness through press releases and social media.

Which Banks Are Affected by the Strike?

The strike has impacted a wide range of banks, including public sector banks (PSBs), old private banks under bipartite agreements, foreign banks, regional rural banks (RRBs), and cooperative banks.

Major public sector banks affected include:

• State Bank of India (SBI): Branches closed, transactions delayed
• Punjab National Bank: Loan and deposit services halted
• Canara Bank: Cheque clearing suspended
• Indian Bank: New account openings paused
• Bank of Baroda: Cash services disrupted

Employees at all levels—from clerical staff to senior officers—are participating, leading to an almost complete shutdown of physical branch operations.

Impact on Customers: Services Affected and What Still Works

Customers are facing a “triple impact” due to January 25 being a Sunday, January 26 being Republic Day, and today’s strike. This has effectively created a four-day break for in-branch banking services.

Services affected include:

• Counter Services: Cash deposits and withdrawals, cheque encashment, and passbook updates
• Processing Work: Loan approvals, fixed deposits, and KYC verification
• Rural Banking: RRBs and cooperative banks are severely affected, impacting rural and underserved areas

However, digital banking services continue to operate. UPI transactions, mobile banking apps, internet banking, and ATMs are expected to function normally. That said, some backend processes may be slower due to the absence of staff. Stock markets are functioning as usual and are not impacted by the strike.

Bank unions have requested customers to remain patient, stating that the strike was forced due to government inaction. Customers are advised to use digital options or plan urgent banking needs accordingly.

As of 9:14 AM IST, there has been no new statement from the government or the IBA after the failed talks. However, past experience shows that such large-scale strikes often push authorities back to the negotiating table.

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