Nationwide public-sector bank strike disrupts branch services; digital channels largely unaffected

Banking customers across India faced a rough start to the week on Tuesday, 27 January 2026, as employees at many public-sector banks went on a nationwide strike demanding the rollout of a five-day work week. The walkout, called by the United Forum of Bank Unions (UFBU), came after a conciliation meeting with the Chief Labour Commissioner on 23 January failed to resolve the issue, setting the stage for a day of curtailed in-branch services.

Why the strike was called

At the heart of the protest is the demand to declare all Saturdays as bank holidays, effectively moving most public-sector banks toward a five-day work week. The unions have argued that the change was contemplated in the 12th Bipartite Settlement signed with the Indian Banks’ Association in March 2024, but has not yet been formally notified by the government. Under the current arrangement, banks typically operate on the first, third and fifth Saturdays of the month, which unions say falls short of what was negotiated.

Which banks and services were most affected

Although 27 January was not designated as an official bank holiday, the strike was expected to disrupt operations at a range of public-sector lenders. Customers were advised to check with their local branches if they had urgent work that required physical presence, such as cash deposits and withdrawals, account-related paperwork, or other counter services.

• Branch services such as cash deposits/withdrawals and routine administrative work likely slowed at participating public-sector banks.
• Cheque clearing and other branch-dependent processing were also expected to see delays.
• ATM cash availability could face localised issues depending on branch-level logistics in specific areas.

What continued to work

Customers relying on digital payments and online channels were expected to see minimal impact. Services such as UPI, mobile banking apps and internet banking were expected to remain available even as some branches ran with reduced staffing. Private sector banks were also expected to operate normally because their employees are not part of the unions backing the protest.

Public-sector banks may see major disruptions due to the strike, but digital banking services are expected to function without interruption.

What customers can do next

For customers who missed a critical in-branch task, the immediate priority is to confirm branch functioning locally and plan for likely queues once services normalise. Those with time-sensitive payments, bill settlements or transfers can lean on UPI and netbanking in the interim. The larger policy question—whether the five-day week demand is accepted and formally notified—will depend on the next round of talks between unions, the government and the banking industry.