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PSB nationwide strike shuts branches for 3 consecutive days as unions demand 5-day week

United Forum of Bank Unions halted services at public sector banks Jan 24–26 after failed wage talks. Digital channels remain operational; private banks unaffected.

9 unionsUnion groups coordinating strike

Banking1 min read

🏦 Banks Are CLOSED Today — Here’s What You Need to Know
Image: Finsamudra LinkedIn archive
3 days (Jan 24–26)Consecutive days of disruption
Jan 23Failed negotiation date

The United Forum of Bank Unions (UFBU) launched a nationwide strike on Jan 24, shutting Public Sector Bank (PSB) branches across India. Nine unions representing officers and employees coordinated the action after conciliation talks on Jan 23 failed to resolve disputes.

The strike demand centers on a single issue: a 5-day work week, matching the schedule already offered by private sector banks. UFBU has escalated pressure on lenders including SBI, PNB, and Bank of Baroda to standardize working conditions.

Cash deposits, withdrawals, and cheque clearances are halted at PSB branches during the strike. Administrative services have ground to a stop, disrupting routine banking operations for millions of customers who rely on counter services.

Digital channels—UPI, internet banking, and mobile apps—continue uninterrupted. ATMs remain accessible, though cash availability may fluctuate depending on pre-strike stockpiles and emergency resupply efforts by lenders.

Private sector banks (HDFC, ICICI, Axis) are operating normally and are unaffected by the PSB strike. This creates a three-day window during which retail and commercial customers may shift transactions to private bank channels.

The closure spans Jan 24–26, compounding disruption caused by Republic Day holidays on Jan 25–26. Borrowers, lenders, and intermediaries relying on physical banking infrastructure face extended service gaps.

Why it matters

For loan agents, DSAs, and connectors, this strike disrupts verification, KYC processing, and cash disbursement workflows at PSB channels. Loan approvals dependent on cheque clearances or physical documentation handoffs face delays. Agents working with PSB-linked borrowers should pivot to digital disbursement (NEFT, UPI) or accelerate processing with private bank partners to avoid funding bottlenecks.

The three-day outage highlights why digital-first loan distribution networks matter: UPI and internet banking continuity ensures credit flow even when branch infrastructure falters. Lenders and DSAs should use this window to stress-test digital KYC and e-sign workflows and educate field teams on alternatives to counter-based banking.

Sources

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Finsamudra DeskNewsroom · 27 Jan 2026, 12:23 pm IST
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