Sunita Somvanshi
The strike was announced by joint bank union leaders after wage negotiations with the Indian Banks’ Association broke down. All public sector banks and most private sector banks will be closed for 72 hours starting September 28. ATM services, NEFT, RTGS, and mobile banking will all be unavailable. The unions are demanding higher wages, better working conditions, and staff shortages be addressed before the banking sector expands further.
For businesses relying on Indian banking — from salary payments to supplier transfers — a three-day nationwide shutdown means every transaction stalls. Salary delays hit millions of Indian bank account holders first, but the ripple extends globally: IT outsourcing payments, remittances from overseas workers, and import-export settlements all freeze. No digital workaround exists when the entire banking system is offline.
**Which banking services are halted and for how long**
All banking services are fully shut down for the three-day strike period. ATMs will not dispense cash. NEFT and RTGS fund transfers will not process. Mobile banking and internet banking will be unavailable. Cheque clearing stops. The strike affects every public sector bank — SBI, PNB, Bank of Baroda, Canara Bank — and most private sector banks including HDFC and ICICI. The unions have stated the strike will last 72 hours from September 28.
The timing compounds the problem. The strike falls in the last week of the financial quarter, meaning quarterly closures and fund transfers that depend on banking infrastructure will face delays that cascade through global finance. Businesses with Indian suppliers, overseas workers sending remittances home, and IT outsourcing firms billing Indian clients all face the same 72-hour freeze with no advance warning that can fully mitigate the damage.
**Why Indian banks are striking**
Indian bank unions are striking for three days starting September 28 over wage negotiations and working conditions, with all banking services including ATMs and digital banking shut down. The unions demand higher wages, better staffing ratios, and guarantees against casualization of permanent positions. The Indian Banks’ Association has countered that the banking sector’s financial position does not support the union demands, and talks have stalled since last week.
The union response after the strike and any government intervention will determine whether this is a one-time disruption or the start of a longer labor conflict. The Reserve Bank of India has issued advisory notices to banks about contingency arrangements. Check back for updates on negotiations and when services resume.
