Banking services in India are set to be disrupted on Tuesday, January 27, 2026 as the United Forum of Bank Unions (UFBU) an umbrella of nine major bank unions embarks on a national strike. The strike follows a vital meeting of conciliation with the Chief Labour Commissioner on January 23 in which a solution for the long-held demand for five-day working week could not be established.
The Desire: 5-Day Work Week
The UFBU has been agitating for time and time again that bank employees be given Saturdays and Sundays off, by which the banking sector should come into line with the majority of the Central Government and IT Industry standards. At present, banks are only observing holidays on the second and fourth Saturdays of the month.
Union leaders insist that the more than two day shift, compounded by the fast digitalisation of banking services, provides reason to have them on a five-day work week in order to secure employee wellness along with their mental health. Extended "Lockout" for Consumers. The strike is especially inapplicable to the public at large. Most public sector banks are already closed for two days, with Republic Day (January 26) being Monday and the day before a Sunday. On Tuesday, Jan. 27, there will be a strike, and many customers will face three to four days without physical banking.
Who Are the Affected Banks?
Nowhere will the effects be most severe than in Public Sector Banks (PSBs). Major institutions including:
- State Bank of India (SBI).
- Punjab National Bank (PNB)
- Bank of Baroda (BoB)
- Canara Bank
Cash deposits and withdrawals, check clearances and loan processing services are likely to come to a halt. Although several banks have made plans to replenish their ATMs, a more serious closure could result in “Cash Out” signs at a few kiosks by late Tuesday evening, according to the study.
What Remains Functional?
Amid the strike in the public sector, the modern financial ecosystem offers multiple alternatives:
- Private Sector Banks: HDFC Bank, ICICI Bank, and Axis Bank are all leading private lenders that are not part of the UFBU and expect to work as is.
- Digitization of Banks: Mobile apps, Net Banking, NEFT/RTGS transfers, and more (will mostly remain automated).
- UPI Payments: Other services such as GPay, PhonePe and Paytm would not be influenced as they are based on online infrastructure and do not require branches to provide services.
What Happens Next?
The government and IBA have previously indicated that they are open for a five day week, with a marginal raise in daily working time. But the Finance Ministry has yet to provide a final determination. If Tuesday's strike doesn't prompt a formal government order, union leaders have cautioned for more widespread protests in coming months.
