Appeal to Employees of Public Sector Banks and Regional Rural Banks for Ensuring Uninterrupted Banking Services

Ministry of Finance Appeal to Employees of Public Sector Banks and Regional Rural Banks for Ensuring Uninterrupted Banking Services

Posted On: 21 SEP 2026 7:50PM by PIB Delhi The United Forum of Bank Unions and certain other Unions/Associations in the Public Sector Banks (supported by Regional Rural Banks) have called for a series of strikes in support of two principal

demands: implementation of five-day banking, and withdrawal of the Performance Linked Incentive

(PLI) scheme. Taking due note of the concerns raised, the Government, after detailed discussion, decided to keep the PLI scheme in abeyance. This proactive initiative by the Government fulfilled one of the two main demands of the Unions.

Following this, the Government held several rounds of conciliation to address the outstanding issues through dialogue, in keeping with the established practice of resolving differences bilaterally. Despite the Government having resolved one of the two major demands of the union, and sustained conciliatory engagement, a one-day strike was held on 11.09.2026, with a further three-day strike now scheduled from

28.09.2026 to 30.09.2026, and an indefinite strike proposed from 26.10.2026, on the single demand of a five-day workweek for banks.

Public Sector Banks play a vital role in the country's economic and social development. They have been at the forefront of financial inclusion, digital banking, financial literacy and rural outreach, ensuring that formal financial services reach every section of society. Recognising this role, and acknowledging that a motivated, secure and efficient workforce is essential for a strong banking system, the Government has taken several measures aimed at improving the working environment, transparency, and welfare of bank employees. Major highlights of these initiatives are as under:

Increase in salary and allowances along with fixation of new pay scales for all cadres.

Staff Welfare Fund (SWF), a fund allocated by the PSBs for welfare-related activities (health- related expenses, subsidies on canteen, sports and cultural activities, education-related financial assistance, etc.) for working and retired officials of PSBs, was enhanced by 56% in August 2024.

The number of executive posts at the levels of Assistant General Manager, Deputy General Manager, General Manager and Chief General Manager were increased.

Recruitment of bank employees increased significantly; from FY 2014-15 to FY 2025-26, PSBs recruited ~4,82,800 employees; recruitment doubled in the last three years. As of 01.07.2026,

95.84% of Officers are in position, and 92% of Subordinate/ Award staff are in position.

Banking recruitment strengthened with the introduction of Aadhaar authentication and declaration of recruitment results streamlined to reduce attrition in banking recruitment Promotion processes streamlined to ensure timely promotions.

Transfer policies improved to enable automated and timely transfers by developing online platforms with the provision to give location preference in case of transfers/promotions.

Special leave approved for women employees, including those related to leave during the menstrual period, infertility treatment, adoption of a second child and the events of stillbirth.Family Pension for bank retirees revised, and Pension option granted to Resignees A monthly Ex-gratia amount to pensioners and family pensioners for the current bipartite period has been introduced and Ex-gratia for pre-1986 retirees and their families has been increased.

Revised medical insurance policy introduced for retirees with Base policy concept.

Conveyance Allowance for PwBD employees increased Reduction in time taken for completion of wage settlement Further, to ensure prompt implementation of Wage Settlements and timely revision of bankers' salaries and allowances, the Government, for the first time, has begun negotiations for the upcoming Bipartite Settlement, aiming to complete it well in advance of the November 2027 deadline. These initiatives reflect the Government's continued commitment towards addressing the genuine concerns and welfare of bank employees, while strengthening the institutional framework and ensuring that the banking sector continues to function efficiently and effectively. Further, these measures indicate that the Government has already addressed the concerns of a substantial majority of bank employees over recent years.

Banking as a service is relied upon by every citizen, and its continuity directly affects the everyday lives of the general public. It may be recalled that, in the interests of bank employees, the Government declared the 2nd and 4th Saturdays of every month as public holidays for Public Sector Banks in

2015. The remaining Saturdays continue to serve as an important opportunity for many citizens to access banking services easily.

The proposed 3-day strike period, from 28th to 30th Sept 2026, also coincides with the half-yearly closing of banks on 30th September, a date of particular significance for reconciliation, provisioning, and treasury and market operations. A disruption of this nature, combined with the preceding weekend, would result in an effective five-day closure of banking services at a particularly sensitive point in the financial calendar — causing considerable inconvenience to customers, businesses, Government transactions, and international banking operations.

Public Sector Banks today stand on a healthy and robust footing — a position achieved through the sustained efforts of the Government and active contribution of bankers and bank managements over the years. It is necessary to preserve and build on this success, in the collective interest of banks, their employees, and the citizens they serve. Strikes, or disruption of work in any form, will adversely affect the banks.

Strikes cause disruption in banking services that inconvenience the public, impact the business of the bank, and ultimately harm the interests of bank employees. There is no fruitful outcome that is achieved through strikes. The Government remains committed to the welfare and well-being of bank employees and to addressing their genuine concerns through constructive engagement.

Given that most concerns of the Unions have been substantially addressed, that the remaining demand continues to be examined, and that the Government continues to proactively introduce welfare measures for the banking workforce, bank employees are urged to refrain from resorting to strikes, work towards resolving issues through dialogue, and ensure that banking services remain uninterrupted.

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