Banking services across the country are likely to face widespread disruptions on March 24-25 as the United Forum of Bank Unions (UFBU) — an umbrella body representing nine major bank unions — has called for a two-day nationwide strike. The unions are demanding better recruitment policies, improved job security, a five-day workweek, and other long-pending reforms to protect employees' rights and enhance working conditions. Customers are strongly advised to complete important transactions beforehand to avoid potential inconvenience during the strike period, as services like cash deposits, withdrawals, cheque clearances, and loan approvals may be affected.
The strike comes after multiple rounds of unsuccessful negotiations between the UFBU and the Indian Banks' Association (IBA). L Chandrasekhar, General Secretary of the National Confederation of Bank Employees (NCBE), expressed disappointment over the IBA’s inability to resolve several key concerns despite extensive discussions. He emphasized that employees are increasingly frustrated with rising workloads, staff shortages, and policies that compromise job stability.
One of the unions' central demands is for increased recruitment across all levels. They argue that many banks operate with inadequate staffing, leading to excessive workloads for existing employees and longer wait times for customers. The unions believe that hiring more staff would improve operational efficiency, enhance customer service, and reduce the pressure on overburdened workers. Additionally, they’re calling for urgent action to fill vacant posts, particularly key roles like workmen and officer directors in public sector banks, which have remained unfilled for extended periods.
Job security is another major point of contention. The unions are pushing back against performance-based appraisals and incentive systems, which they claim create an atmosphere of uncertainty and stress among employees. They argue that these systems often prioritize profits over people, putting jobs at risk, especially for employees who may struggle to meet arbitrary targets. The UFBU demands a more balanced, humane approach to performance evaluation that safeguards job security while recognizing employees' efforts.
The unions are also pushing for reduced government interference in banking operations. They argue that excessive control from the government limits the autonomy of bank boards, making it difficult for banks to make independent, strategic decisions. According to the UFBU, empowering bank boards with greater decision-making freedom would foster a healthier, more competitive banking environment and allow institutions to operate more efficiently.
Another critical demand involves improved gratuity benefits. The unions are advocating for an increase in the gratuity limit to ₹25 lakh, a move aimed at securing better financial stability for retiring employees. Additionally, they want this amount to be fully exempt from income tax, easing the financial burden on retirees who have dedicated decades of service to the banking sector.
The UFBU has also raised strong objections to the government’s performance-linked incentive (PLI) schemes and periodic employee reviews. They argue that such policies create an uneven playing field, where employees are forced to chase targets under intense pressure, leading to mental stress and burnout. The unions insist that these policies must be scrapped in favor of a more supportive, well-rounded approach to employee welfare and performance assessment.
The UFBU is a powerful coalition that includes nine major banking unions: the All India Bank Employees Association (AIBEA), All India Bank Officers’ Confederation (AIBOC), National Confederation of Bank Employees (NCBE), All India Bank Officers’ Association (AIBOA), Bank Employees Federation of India (BEFI), Indian National Bank Employees Congress (INBEC), Indian National Bank Officers’ Congress (INBOC), National Organisation of Bank Workers (NOBW), and National Organisation of Bank Officers (NOBO). Together, they represent a significant portion of the country's banking workforce, making the strike a formidable show of unity and strength.
The strike is expected to cause significant disruptions, particularly for customers relying on physical banking services. Branch-based transactions like cash deposits, cheque clearances, and loan processing are likely to be affected, while digital banking services such as UPI, net banking, and mobile apps are expected to remain operational. Even so, customers who require in-person assistance or rely on traditional banking methods are advised to plan ahead to avoid being caught off guard.
The UFBU has indicated that this strike is a warning — if their demands remain unaddressed, further, more prolonged strikes may follow. The unions believe that their fight is not just about better wages or working conditions but about securing the future of India’s public banking sector, ensuring job stability, and preserving the dignity of employees who are the backbone of the financial system.
This strike underscores the growing tensions between bank employees, management, and government policies shaping the sector. While banks are essential for economic stability and growth, the unions argue that employees’ well-being and fair working conditions cannot be ignored. With no resolution in sight, the UFBU remains resolute, determined to continue its fight for what it calls a "fair and just" banking environment — one that values its workforce as much as its balance sheets.
