Banks Likely To Remain Closed on January 27 As Employee Unions Call for Nationwide Strike Demanding 5-Day Work Week

Mumbai, January 19: Banking services across India are expected to face significant disruption on Tuesday, January 27, as major employee unions have called for a nationwide strike. The United Forum of Bank Unions (UFBU), an umbrella body representing nine major federations, announced the action to protest the government's delay in implementing a five-day work week, a demand that has been at the centre of negotiations for nearly two years.

The timing of the strike is particularly critical for customers, as it follows a long weekend consisting of the fourth Saturday (January 24), Sunday (January 25), and Republic Day (January 26), potentially leaving public sector banks closed for four consecutive days. Bank Holidays January 19-25: Banks To Remain Closed for Business on These Days Next Week; Check Details.

What Is the Core Demand of Bank Employees?

The primary driver behind the January 27 strike is the long-standing demand to declare all Saturdays as holidays. Currently, banks operate on a cycle where only the second and fourth Saturdays are off. Union leaders argue that an agreement in principle was reached with the Indian Banks’ Association (IBA) in March 2024.

Under that framework, employees agreed to extend their daily working hours by 40 minutes from Monday to Friday to compensate for the lost man-hours on Saturdays. Despite this compromise, the unions claim the central government has yet to issue the final notification required to operationalise the new schedule.

Impact on Banking Services

If the strike proceeds, operations at most public sector banks and several old-generation private banks will likely come to a standstill. Key services expected to be affected include:

Counter Services: Cash withdrawals, deposits, and passbook updates at physical branches.

Cheque Clearing: Processing of physical cheques will be delayed, impacting business transactions.

Administrative Work: Loan processing, KYC updates, and locker access may be unavailable.

While branch operations will be hit, digital banking platforms - including UPI, IMPS, and Net Banking - are expected to remain functional. However, experts warn that a four-day gap in physical banking could lead to a shortage of cash at some ATMs and a massive backlog of clearing transactions by the following Wednesday.

Union Concerns and Workforce Stress

Beyond the work-week schedule, the All India Bank Employees Association (AIBEA) has highlighted a "severe staff crunch" as a secondary grievance. According to union data, the number of clerical and sub-staff in public sector banks has dropped significantly over the last decade, even as the volume of banking business has more than doubled. The unions are also seeking better pension updates and a halt to the proposed privatisation of public sector banks. Bank Holidays in January 2026: From Mannam Jayanthi to Makar Sankranti and Republic Day, Banks To Remain Closed for 16 Days Next Month; Check Full List Here.

Preparations for Customers

Financial experts advise customers to complete essential branch-related tasks by Friday, January 23. With the prospect of a four-day shutdown in many regions, businesses are encouraged to schedule bulk transfers and salary disbursements in advance to avoid technical bottlenecks. Historically, last-minute conciliation meetings between the Ministry of Finance, the IBA, and union leaders have occasionally led to strikes being deferred. However, as of January 19, no such breakthrough has been reported, and the UFBU has urged its members to prepare for a full-scale walkout.

(The above story first appeared on LatestLY on Jan 19, 2026 06:14 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).