PSBs and Regional Rural Banks to Operate on Sunday Ahead of Planned Three-Day Strike — September 23, 2026

Public sector banks (PSBs) and regional rural banks (RRBs) across the country will open and operate normally on Sunday, September 27, 2026, following a directive from the Ministry of Finance. The proactive measure comes ahead of a proposed three-day nationwide bank strike called by the United Forum of Bank Unions (UFBU) scheduled between September 28 and September 30.

The strike threatened to cause up to five consecutive days of branch-level closures when combined with the weekend of September 26 (fourth Saturday) and September 27 (Sunday). Given that September 30 marks the crucial half-yearly closing of accounts for the banking sector, the prolonged shutdown raised serious concerns regarding liquidity flows, treasury operations, and commercial transactions.

Regulatory Clearance from RBI

The Reserve Bank of India (RBI) has issued formal approvals enabling banks to run standard operations during the weekend. Under this authorization, the following entities will remain functional on Sunday, September 27:

• All public sector bank branches and administrative offices
• Regional rural banks across states
• ATM-linked branches and currency chests
• Clearing and settlement facilitation hubs

"In order to ensure that the genuine banking needs of the public are not adversely affected for an extended period, all Public Sector Banks and Regional Rural Banks will function normally on Sunday, the 27th of September, 2026," the Department of Financial Services under the Ministry of Finance said in an official statement.

Union Demands and Government Dialogue

The UFBU, an umbrella body representing nine major bank employee and officer unions covering approximately 90% of the public banking workforce, called the agitation primarily to press for a five-day banking workweek. The demand had been agreed upon in principle during earlier wage negotiation rounds but remains pending official notification.

Key Grievances Raised by UFBU:

• Immediate implementation of a five-day workweek with declared Saturday holidays
• Formal withdrawal and scrap of the Performance Linked Incentive (PLI) framework
• Pension updates, dearness allowance harmonization, and options to switch from the National Pension System (NPS) back to the Old Pension Scheme (OPS)

In response, the central government has already moved to place the revised PLI scheme in abeyance to pacify employee unions, while urging leadership to defer the strike call and pursue resolution via dialogue.

Implications for Markets and Account Holders

The decision to open branch networks on Sunday provides immediate relief to retail depositors, small businesses, and corporate treasuries. A five-day halt at branch counters would have severely impaired physical cheque clearances, trade-finance documentation, and tax payment collections.

While digital banking channels, including Unified Payments Interface (UPI), National Electronic Funds Transfer (NEFT), Real Time Gross Settlement (RTGS), and net banking infrastructure, are scheduled to operate uninterrupted, physical cash replenishment at standalone ATMs could have faced stress without active currency chests. The Sunday opening ensures that currency logistics and branch-assisted high-value operations proceed smoothly before the fiscal half-year deadline.

Tags: Reserve Bank of India Ministry of Finance State Bank of India Indian Banks Association United Forum of Bank Unions Banking Sector