Banks May Stay Closed On January 27, A Day After Republic Day In India: Here’s The Reason

Banks across the country could remain shut on Monday, January 27, as bank employees plan a nationwide strike to push for the implementation of a five-day work week.

The proposed action comes at a time when January 25 and 26 are already holidays, raising the possibility of prolonged disruption in public sector banking services if the strike proceeds as announced.

Why bank unions have called the strike

The strike has been called by bank staff unions under the banner of the United Forum of Bank Unions (UFBU), which is pressing the government and the Indian Banks' Association (IBA) to honour an agreement reached during the wage revision settlement in March 2024. Under that settlement, both sides had agreed in principle to declare all Saturdays as holidays, effectively moving banks to a five-day work week. However, the decision is yet to be implemented, triggering renewed protests.

Conciliation talks fail to resolve the issue

Following the strike notice, the Chief Labour Commissioner held conciliation meetings over two days in an attempt to break the deadlock. The discussions, however, did not yield any breakthrough. Confirming its stance, the UFBU said, "Despite detailed discussions, finally there was no positive outcome out of the conciliation proceedings." As of Saturday evening, the unions maintained that the strike plan was still on.

Which banks are likely to be affected

If the strike goes ahead, most government-owned banks are expected to be impacted. These include State Bank of India, Punjab National Bank, Bank of India, Bank of Baroda and other public sector lenders. Many of these banks have already cautioned customers about possible disruptions to branch services. Large private sector banks such as HDFC Bank, ICICI Bank and Kotak Mahindra Bank are not expected to be affected.

Unions defend demand for five-day work week

At present, bank employees get the second and fourth Saturdays off each month, along with Sundays, meaning most weeks still involve six working days. The UFBU has argued that moving to a five-day schedule would not reduce productivity, as employees have already agreed to work an additional 40 minutes each day from Monday to Friday. Expressing frustration, the union said earlier this month, "It is unfortunate that the government is not responding to our genuine demand." The UFBU has also pointed out that institutions such as the Reserve Bank of India, LIC, stock exchanges and government offices already follow a five-day work week, questioning why banks should be treated differently.