Bank Alert: 3-Day Shutdown Expected in Late January 2026

The United Forum of Bank Unions (UFBU), the apex body of nine major bank unions, has officially announced a nationwide strike on Tuesday, January 27, 2026. This industrial action, combined with a weekend and a national holiday, will effectively halt physical banking operations for three consecutive days across India.

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1. The 3-Day Impact Timeline

Customers are advised to plan their transactions early, as branch-based services will be unavailable during this period.

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2. Why Are Bank Employees Striking?

The primary demand is the immediate implementation of a 5-day work week.

• The Agreement: In March 2024, the Indian Banks’ Association (IBA) and unions signed a wage revision agreement that included declaring all Saturdays as holidays.

• The Delay: Unions allege the Central Government has been “sitting tight” on the recommendation for nearly two years without issuing the final notification.

• The Trade-off: Employees have offered to work an extra 40 minutes daily (Monday to Friday) to ensure no loss of total working hours or productivity.

• Precedent: Unions argue that the RBI, LIC, GIC, and stock exchanges already operate on a 5-day week, making the current banking schedule discriminatory.

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3. Which Services Will Be Affected?

While physical branches will be closed or heavily disrupted, digital infrastructure is expected to remain mostly functional.

• ❌ Affected Services: Cheque clearing, cash deposits/withdrawals at counters, Demand Draft (DD) issuance, and loan processing.

• ✅ Functional Services: UPI (GPay, PhonePe, etc.), Mobile Banking, Net Banking, and IMPS/NEFT/RTGS transfers.

• ⚠️ Partial Impact: ATMs may run out of cash by the third day (Jan 27) as cash-loading agencies often face logistical hurdles during strikes.

4. Participation of Private Banks

The strike will see near-total participation in Public Sector Banks (PSBs) and Old-Generation Private Banks (like Federal Bank, Dhanlaxmi Bank, etc.). New-generation private lenders (HDFC, ICICI, Axis) typically remain operational, though their cheque-clearing processes may be delayed due to the disruption of the central clearing house….

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