Govt declares Banking Industry as ‘Public Utility Service’ for Six Months, Will it impact Bank Strike in January?
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The Indian Banks’ Association (IBA) has informed all member banks that the Government of India has once again declared the banking industry as a Public Utility Service under the Industrial Disputes Act, 1947. This declaration will remain in force for six months starting from December 15, 2025. This declaration has come at a time when the UFBU has announced an All-India Bank Strike. This has raised suspicion, and a debate has begun over its possible impact.
The Ministry of Labour issued a Gazette Notification (S.O. 5794 E) on December 15, 2025, officially extending this status. The Department of Financial Services (DFS), Ministry of Finance, also communicated the decision through a letter dated December 17, 2025.
What the declaration means
Under the Industrial Disputes Act, industries classified as “Public Utility Services” fall under special rules aimed at preventing sudden strikes or disruptions. Employees working in such sectors are required to follow stricter procedures before going on strike, ensuring essential services continue smoothly.
Recently, the United Forum of Bank Unions (UFBU) announced an All-India Strike for January 2026. The main reason for the strike is the non-fulfilment of the long-pending demand for 5-day banking. It has been almost two years since the signing of the last Bipartite Settlement, yet the government has still not approved 5-day banking for public sector banks.
All major government departments, including RBI and SEBI, already follow a five-day workweek, but banks continue to operate for six days. In March 2025, unions had called for a strike to push for 5-day banking, but they later deferred it after the Finance Ministry assured them that the matter was under “active consideration.” However, with no progress even after six months, the unions have now decided to intensify their agitation.
Now, the Government has declared banking industry as a Public Utility Service. The government periodically renews this status for the banking sector. According to the IBA, the banking industry has been receiving this designation repeatedly because of its critical role in the country’s financial system and everyday public services. According to banking experts, this might impact the strike announced by UFBU.
IBA’s communication
In its circular dated December 17, 2025, the IBA informed designated officers in all member banks about the notification. The communication was signed by Brajeshwar Sharma, Senior Advisor (HR & IR). It stated that the renewal has been made under Section 2(n)(vi) of the Industrial Disputes Act, which allows the Central Government to declare any industry as a Public Utility Service for a specified period.
Validity
- Effective From: December 15, 2025
- Valid For: Six months
During this period, any industrial dispute or strike action in the banking industry will be subject to stricter regulations.
Click here to check schedule of All India Bank Strike in January 2026
