Why are Bankers Going on a Two-Day Nationwide Strike?

New Delhi, 20 March 2025: The banking sector in India is preparing for a massive two-day strike on 24-25 March 2025, with employees demanding long-overdue reforms, including a five-day workweek and adequate recruitment in Public Sector Banks(PSBs). Despite multiple rounds of negotiations and conciliation meetings, including the one convened by the Chief Labour Commissioner (CLC) on 18 March 2025 in New Delhi, no resolution has been reached.

Bankers' Long-Pending Demands

The major demands behind the strike include the implementation of a five-day workweek to improve work-life balance and adequate recruitment in PSBs to address staff shortages. Employees argue that staff shortages have led to excessive work pressure, reduced service quality, and increased reliance on outsourcing. With the final conciliation meeting scheduled for 21 March 2025 at the office of CLC, New Delhi, union leaders remain sceptical of a positive outcome.

Union Leaders Speak on the Strike

Kanal spoke to leaders of major employees’ unions and officers’ associations in the banking sector. They unanimously expressed dissatisfaction with the authorities' approach toward the long-pending demands of the workforce. Their statements reflected a strong sense of unity and determination among the banking community.

“Lack of Action on Five-Day Banking”

P M Balachandra, All India President of AIBOC, highlighted the failure to implement the agreed-upon demand for a five-day workweek. “As per the 9th Joint Note and 12th Bipartite Settlement signed on 08 March 2024, the Indian Banks’ Association (IBA) assured that the demand for five-day banking would be considered by the Department of Financial Services (DFS). However, despite both UFBU and IBA agreeing, no positive step has been taken. Work-life balance is deteriorating, and the five-day workweek is essential,” he stated.

“Acute Staff Shortage in PSBs”

N Shankar, All India Vice President of AIBEA, stressed the impact of staff shortages. “Recruitment and five-day banking are vital for employees' well-being and customer service. PSB branches are struggling with acute staff shortages, making it difficult to serve existing customers, let alone attract new business. The government’s reluctance to address these issues appears to be an attempt to divert banking operations towards private banks,” he remarked.

He also stated that given the past negotiation talks, no significant outcome is expected. Despite MPs raising concerns in Parliament, the government remains unresponsive. With no resolution in sight, the unions have no choice but to proceed with the strike, he added. 

“Delayed Decisions and Rising Work Pressure”

R K Chatterjee, President of INBOC, pointed out that the government had agreed to consider the five-day workweek as early as 12 September 2015, but no progress has been made. “With rising target pressures, late-night work, and online meetings, a five-day workweek is necessary to maintain work-life balance. Even financial institutions like RBI and NABARD follow this system,” he noted.

Additionally, he called for legislation to protect bankers from increasing instances of workplace violence, as cases of physical assaults on employees are on the rise. Chatterjee further emphasised the lack of representation of employees in PSBs. “Workmen and officer directors were previously part of PSB boards, but such appointments have been discontinued. Reinstating these positions is another critical demand in this strike,” he said.

“Recruitment Crisis in PSBs”

R Balaji, President of NCBE, highlighted the severe recruitment crisis in public sector banks. “Recruitment across all cadres is a major concern for bank employees. Except for SBI, most banks are not hiring adequate clerical staff, even failing to fill vacancies caused by retirements and deaths. Officers are now forced to handle clerical work due to this shortage, impacting business and customer service. Additionally, PSBs have not recruited subordinate staff in over two decades, despite their crucial role in branch operations and security. Armed guards are also essential to ensure the safety of bankers,” he stated.

“Privatisation and Deteriorating Work Conditions”

S S Anil, All India President of BEFI, highlighted alarming trends in PSB employment. “For the first time since nationalisation, private banks employ 1 lakh more personnel than PSBs. Workmen cadres have declined, sub-staff roles are outsourced, and daily wagers are increasing. Officers are forced to take up duties previously handled by workmen, adding to their burden. Staff shortages and declining security provisions contribute to rising attacks on bank employees,” he explained.

He also mentioned that while the 12th Bipartite Settlement required additional responsibilities from workmen cadres as a justification for new recruitment, the promised hiring has not materialised, leaving employees overburdened.

Final Efforts Before the Strike

With negotiations failing to yield results, the final conciliation meeting at the CLC office on 21 March 2025 is the last opportunity for resolution. However, union leaders remain doubtful about any breakthrough.

Vitthal Mane, Joint Secretary of AIBOC Maharashtra Unit and UFBU Convenor, Pune, summed up the situation: “This strike has become unavoidable due to persistent neglect by the Government, DFS, and IBA. Despite repeated representations, peaceful protests, and discussions, no concrete steps have been taken. Strikes inconvenience customers, but when all dialogue fails, this is the only way to fight for justice.”

Impact of the Strike

The two-day strike on 24-25 March 2025 is expected to bring banking operations across PSBs to a standstill. Aligned with the fourth Saturday and Sunday, this strike will lead to four consecutive non-working days, impacting customers and financial year-end transactions. Unless a resolution is reached in the final conciliation meeting, India’s banking sector is set for a major disruption.