India’s bank employees have threatened a nationwide strike on January 27 after months of stalled wage negotiations, a move that could disrupt banking services across the country.
Unions representing workers across public sector banks, private lenders and regional rural banks issued a joint call for the strike, citing a lack of progress in talks over pay, allowances and working conditions. The action, if it goes ahead, is expected to affect branch operations and customer-facing services nationwide.
Reuters reported that wage revision discussions between employee unions and bank management have dragged on for months without a breakthrough. Union leaders say proposals on the table do not adequately reflect rising living costs or the increasing workload faced by frontline staff.
The unions are seeking a comprehensive wage revision across all categories of bank employees, along with higher allowances, stronger job security measures and steps to address staffing shortages. They argue that post-pandemic banking has brought longer hours, higher customer expectations and greater operational pressure, without commensurate improvements in compensation.
“The negotiations have failed to move meaningfully despite repeated rounds of talks,” a senior union representative said, adding that the strike notice was intended to force a resolution. Union leaders have warned that employees will proceed with the strike if their demands are not addressed before the January 27 deadline.
The strike call has been backed by major federations representing clerical staff and officers, signalling broad-based participation across the banking workforce. Industry observers say such unity increases the likelihood of widespread disruption if talks collapse.
If the strike proceeds, customers could face branch closures or limited counter services, delays in cash transactions, loan processing and account-related work. While digital banking platforms are expected to remain operational, services requiring in-person handling may be affected, particularly in smaller towns and rural areas.
Bank management bodies and government officials have acknowledged receipt of the strike notice but have yet to publicly commit to meeting all union demands. Reuters reported that further negotiations are expected in the coming weeks as authorities seek to avert a shutdown of banking services.
Labour action during wage revision cycles is not unusual in India’s banking sector. However, analysts note that the latest strike threat comes at a time when banks are under pressure to improve efficiency, expand credit and maintain service quality amid growing competition from non-bank financial players.
With less than three weeks to the deadline, the focus has shifted to whether fresh talks can break the deadlock. For now, the January 27 date has emerged as a key test of how far both sides are willing to go to avoid a nationwide disruption to India’s banking system.