Bank Strike: India's Central Government to Pay Salaries in Advance Amid Nationwide Bank Strike

India's central government has announced that it will pay salaries and pensions to its employees in advance. Ahead of a three-day nationwide bank strike proposed for September 28-30, 2026. The move aims to prevent disruptions in the banking sector, which will also operate on Sundays during the strike period.

The Controller General of Accounts under the Finance Ministry has issued an office memorandum instructing ministries and departments to arrange for the advance payment of September salaries. The salaries and pensions for central government employees will be credited on September 25, ahead of the proposed strike.

This decision is significant, as the government has decided that the salary/wages/pensions of all Central Government Employees for the month of September 2026 may be drawn and disbursed by the Central Government offices (including Defence, Posts &amp. Telecommunications) on September 25, 2026.

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The Reserve Bank of India has been asked to convey these instructions to the banks' paying branches. This ensures that customers continue to have access to banking services. Several state-owned banks have started proactively notifying customers about the availability of digital banking services.

This includes mobile banking, ATMs, online banking, and mobile payment platforms, in the event of the strike proceeding.

The United Forum of Bank Unions, representing nearly nine-tenths of the banking sector, is set to embark on a three-day work stoppage, with the goal of implementing a five-day workweek and several other key demands. Government officials and bank administrators have called on the unions to reconsider their planned strike.

As the banking sector gears up for its half-yearly closing period, a proposed strike poses a significant threat to the sector's operations. With key activities such as reconciliation, provisioning, and treasury and market operations suspended, the government is seeking to mitigate the impact by arranging for advance payments, thereby safeguarding timely payment of salaries and pensions to employees.

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The government has mandated all banks. This includes Regional Rural Banks, to remain open on Sundays, a move designed to mitigate potential disruptions during an impending strike. As the strike coincides with the half-yearly banking sector closure, the government has taken decisive action to safeguard customers' access to essential banking services.

This proactive measure is intended to minimize the impact of the strike on the public.

As the strike by bank employees enters its critical phase, the government's decision to advance payments is seen as a positive step towards minimizing disruptions. With the Reserve Bank of India's approval for the continued operation of all bank branches. Offices, ATM-linked branches, and currency chests on September 27, customers can continue to access their banking services without any issues.