Shimla: Banking services across Himachal Pradesh are likely to face disruption for three days from September 28 to 30, as bank employee unions have announced a nationwide strike over the demand for a five-day banking week and other pending issues.
The strike has been called by the United Forum of Bank Unions (UFBU), an umbrella organisation of seven major bank unions. The unions represent a large section of the banking workforce, and their strike is expected to particularly affect branch-level operations of public sector banks.
The strike comes immediately after the weekend and the second Saturday holiday on September 26-27. As a result, customers requiring physical branch services could effectively face a prolonged disruption in banking operations.
The principal demand of the unions is implementation of a five-day banking week, under which Saturdays would become holidays along with Sundays. At present, bank branches generally remain closed on the second and fourth Saturdays, while they operate on other Saturdays.
The unions have argued that the five-day system would bring banking employees in line with working arrangements followed by many other sectors. They have also maintained that additional working hours from Monday to Friday can compensate for the reduction in working days. The proposal for all Saturdays to be holidays had been agreed upon by the Indian Banks’ Association (IBA) during the wage settlement in 2024 but is still awaiting government approval.
Another major issue was the Performance Linked Incentive (PLI) scheme. However, the Centre has now kept the PLI scheme in abeyance, effectively addressing one of the two principal demands cited by the unions. The government has nevertheless failed to reach an agreement with the unions on the five-day work week, which remains the key point of contention.
Banking operations in Himachal likely to be affected
In Himachal Pradesh, customers visiting bank branches in Shimla, Mandi, Kangra, Solan, Una, Hamirpur, Bilaspur and other districts may face inconvenience during the strike.
Services that require physical presence or manual processing are likely to be the most affected. These may include:
- Cash deposits and withdrawals at branches
- Cheque-related work and clearing-related activities
- Account-related documentation
- Submission and verification of documents
- Account opening and closure-related work
- Loan and other banking paperwork
- Other services requiring assistance from bank employees
The extent of disruption, however, will depend on participation by employees and the individual bank or branch.
The timing of the strike is particularly significant because September 30 is the half-yearly closing date for banks. A three-day strike at the end of the half-year could put additional pressure on reconciliation, settlements and other financial closing activities.
Digital banking services expected to continue
The strike does not mean that the country’s entire banking system will come to a standstill. UPI, internet banking, mobile banking and many ATM-based services are expected to remain available.
Customers can therefore continue using digital channels for fund transfers, bill payments and other routine transactions. ATMs and cash deposit machines are also expected to provide some relief, although customers may face inconvenience if cash availability or technical issues arise at individual machines.
Banks have advised customers to complete important branch-dependent transactions before the strike and use digital banking facilities wherever possible. Public sector banks have also been directed to take contingency measures, including ensuring adequate cash availability in ATMs, to minimise disruption.
The Centre has appealed to bank employees to reconsider the strike and resolve the remaining issues through dialogue. Several rounds of conciliation involving the Department of Financial Services, IBA, bank managements and the unions have taken place, but no agreement has been reached on the five-day banking demand.
The UFBU, however, has decided to proceed with the September 28-30 strike.
The unions have also warned of further industrial action, including a proposed indefinite strike from October 26, if the five-day banking demand remains unresolved.
With the strike beginning Monday, customers in Himachal Pradesh who have urgent branch-related work are advised to complete it in advance. Those requiring large cash withdrawals, cheque-related services, document submission or other work that cannot be completed digitally should plan accordingly.
For routine transactions, customers can continue using UPI, ATMs, mobile banking and internet banking during the strike period.
The immediate impact is therefore expected to be concentrated on physical bank branches rather than a complete shutdown of banking services. Private banks may also be less affected than public sector banks, depending on employee participation.
