Banking services in India may face disruptions for three days, from September 28 to 30, after the United Forum of Banking Trade Unions (UFBU) announced a general strike. The reason cited by the union is the demand for a five-day work week.
The proposal for a five-day work week in the banking sector has been under consideration for over two years. The Indian Banks' Association (IBA), which represents banks in India, has agreed to this demand and submitted it to the government for approval.
The main concern among Indians living in the UAE is whether the strike will affect remittances to their home country, payments, cash withdrawals, or bank transactions on accounts held in Indian banks. Customers should know the following.
Reasons for the Indian Banking Union Strike
UFBU, which serves as the umbrella body representing bank employee unions and other associations in public sector banks, along with regional rural banks, called for the strike, demanding the implementation of a five-day banking week and the abolition of the Performance Linked Incentive (PLI) scheme.
The Indian government has stated that it has decided to keep the PLI scheme in abeyance following discussions with the unions, thereby satisfying one of the two main demands. Despite several rounds of conciliation talks, a one-day strike took place on September 11, and a three-day strike is scheduled for September 28 to 30. An indefinite strike starting October 26 has also been proposed due to the remaining demand for a five-day work week.
Currently, branches of Indian banks are closed on the second and fourth Saturdays, but they usually operate on the first, third, and fifth Saturdays, if applicable. The unions insist that all Saturdays become holidays.
Other key demands from the unions include an exemption from income tax on an additional 4 percent of contributions made by banks to the National Pension System (NPS); increasing the retirement benefit ceiling according to the Pension Act; pension updates; establishing a unified Dearness Allowance (DA) to pensions; and reviewing the lump-sum payment to pensioners effective from November 2022.
How Will This Affect Banking Operations?
Services provided at branches are expected to be disrupted in public sector banks and regional rural banks directly affected by the strike call. Private banks are not expected to be affected to the same extent, but customers are advised to check information with their respective banks.
The Indian government noted that the strike from September 28 to 30 coincides with the semi-annual bank closure on September 30, which is significant for data reconciliation, provisioning, and treasury and market operations.
It was stated that the strike, combined with preceding holidays, could effectively lead to a five-day closure of banking services, affecting customers, businesses, government transactions, and international banking operations.
To provide an additional banking day before the strike, the Ministry of Finance announced that public sector banks and regional rural banks would operate on Sunday, September 27, subject to approval from the Reserve Bank of India (RBI) for the functioning of branches, offices, ATM-related units, and cash vaults.
What Indian Citizens in the UAE Need to Know
Public sector banks have issued notifications urging customers to complete all necessary banking operations in advance and utilize digital services wherever possible to avoid inconvenience during the three-day strike.
Remittances from the UAE to India will not be affected by the strike. Al Ansari Exchange stated that its operations supporting transfers to India will continue as usual, and customers can use digital channels 24/7 or visit their branches across the UAE during operating hours.
According to Ali Al Najjar, CEO of Al Ansari Exchange, the UAE is the second-largest source of remittances to India, accounting for 19.2 percent of incoming transfers reported by banks.
Digital account access may remain available, however, services requiring physical presence at a branch or staff intervention may be impacted.
What Has the Indian Government Done for the Welfare of Bank Employees?
Measures taken to improve the status of bank employees include salary and allowance increases, expansion of managerial positions, and recruitment. The government reported that public sector banks hired approximately 4.82 lakh employees between the fiscal years 2014-15 and 2025-26, with recruitment doubling in the last three years. As of July 1, 2026, 95.84 percent of officer positions and 92 percent of subordinate/reward personnel positions were filled.
Other steps include improving transfer and promotion processes, special leave provisions for female employees, review of family pensions, improved medical insurance for pensioners, and increased travel allowance for employees with disabilities.
The government has also initiated negotiations for an upcoming bilateral agreement ahead of the November 2027 deadline, stating that this initiative aims to ensure timely review of salaries and allowances for bank employees.
The government emphasized that the remaining demand for a five-day work week continues to be studied and strongly urged employees to ensure uninterrupted banking service while resolving the issue through constructive dialogue.