Over 3,000 bank employees and officers died due to COVID-19 in India while discharging essential front-line duties during the pandemic. Nearly 1.5 lakh (150,000) bank employees were infected during peak waves.
Why this happened?
Essential Status: Bank branches remained open during lockdowns with up to 50% staff attendance.
High Exposure: Constant public dealing and heavy branch footfalls during salary and pension days.
Delayed Vaccination: Unions noted that bankers initially lacked priority status as frontline workers compared to healthcare staff.
December 2020 – January 2021 (First Wave): The Indian Banks’ Association (IBA) reported that approximately 600 bank employees had died during the initial wave of the pandemic.
May 2021 (Second Wave Peak): As the Delta variant surged, the All India Bank Employees’ Association (AIBEA) announced that the death toll had rapidly climbed past 1,300 bank workers, with over 150,000 recorded infections.
July 2022 Cumulative Tally: The All-India State Bank Officers’ Federation (AISBOF) stated that the total death toll since the outbreak had exceeded 3,000 bankers.
Did Government provide any compensation?
No standalone, specific federal compensation package was announced by the central government specifically for bank employees.
Most public sector banks—including State Bank of India (SBI), Canara Bank, Central Bank of India, and Union Bank of India—individually announced a fixed cash payout of ₹20 lakh to the legal heirs of permanent employees who succumbed to the virus while in service.
Throughout the pandemic, banking unions like the All India Bank Employees’ Association (AIBEA) repeatedly petitioned the Finance Ministry. They requested that the government extend its universal ₹50 lakh insurance coverage (offered to healthcare workers) to banking staff and mandate similar ₹20 lakh compensation protections for temporary, casual, and contractual bank workers who were left out of individual bank policies.
Despite the sacrifices made by thousands of bank employees and officers during the COVID-19 pandemic, many bankers feel that their contribution has not received the recognition it deserves.
Bank branches continued to provide essential services when much of the country was under lockdown, while employees faced regular public contact and significant health risks. Even after losing colleagues and serving customers throughout the crisis, bankers continue to face public criticism and, according to employee unions, often feel that their concerns are not given adequate importance by the authorities.
The experience has left many in the banking sector questioning whether their contribution during one of the country’s most difficult periods has been properly acknowledged.
