Bank strike on Friday 11 September. Dates inside

Change: Yesterday, Tuesday 1 September, the Reserve Bank of India asked banks for Rs 6,00,000 crore for 7 days and got Rs 1,14,320 crore. That is 19 paise of every rupee asked. The same day it got Rs 2,59,846 crore of the Rs 4,00,000 crore it asked overnight, which is 65 paise.

Impact: Both auctions cleared at 5.24 per cent, the same rate as every auction for a week. Monday 31 August was the same: 62 paise overnight, 22 paise for 15 days.

Action: One line for the desk: banks are not refusing to park cash, they are refusing to park it for long.

Change: Bank union strike dates are out: a one day nationwide strike on Friday 11 September, three days from Monday 28 September to Wednesday 30 September, and indefinite from Monday 26 October if demands stay unresolved.

Impact: The two main demands: the five day banking week agreed with banks in March 2024 and still waiting on government approval, and withdrawal of the new performance incentive scheme.

Action: Friday 11 September is followed by Saturday 12 September, the second Saturday, and Sunday 13 September. Branches could stay shut three days in a row. Plan cash and clearing before Thursday 10 September.

Change: This morning, Wednesday 2 September, the Reserve Bank asks for MORE overnight money: Rs 5,00,000 crore, up from Rs 4,00,000 crore yesterday. Bidding runs 9:30 to 10:00.

Impact: Overnight is the only window banks have been filling well. The Reserve Bank just made it a quarter bigger.

Action: Watch the result around mid day. If banks fill most of it, the pattern holds.

Change: The government buys back its own bonds tomorrow, Thursday 3 September: 7.33% GS 2026, 5.74% GS 2026, 8.15% GS 2026 and 8.24% GS 2027.

Impact: All four mature within six months. Up to Rs 30,000 crore in all.

Action: Check your book tonight. A desk holding any of the four decides in the morning.

Change: Two chairs changed on Tuesday 1 September. The Reserve Bank made Shri Suman Ray Executive Director. Ujjivan Small Finance Bank's MD and CEO Sanjeev Nautiyal retired early on health grounds; Carol Furtado is acting chief.

Impact: Suman Ray will look after the Deposit Insurance and Credit Guarantee Corporation, the body that pays depositors of failed banks.

Action: Names, dates and sources below.

What changed: The Reserve Bank held a 7 day auction to take in spare cash on Tuesday 1 September. It asked for Rs 6,00,000 crore. Banks offered Rs 1,14,320 crore and all of it was taken. The cut-off rate and the weighted average rate were both 5.24 per cent.

Who is affected: Every treasury desk that parks spare cash with the Reserve Bank.

What to do: Compare the last three long auctions, all at 5.24 per cent: Friday 28 August, 51 paise of every rupee asked. Monday 31 August, over 15 days, 22 paise. Tuesday 1 September, over 7 days, 19 paise. The price never moved. The willingness did.

Last date: The money returns to banks on Tuesday 8 September 2026.

Source: Reserve Bank of India press release, 1 September 2026 ↗

What changed: On the same day, Tuesday 1 September, the Reserve Bank also ran an overnight auction. It asked for Rs 4,00,000 crore and got Rs 2,59,846 crore, all of it taken, at a cut-off and weighted average of 5.24 per cent.

Who is affected: Any desk deciding how long to lock money away.

What to do: That is 65 paise for one night against 19 paise for seven days, same day, same price. The length of the lock decided everything and the rate decided nothing.

Last date: The overnight money returned this morning, Wednesday 2 September 2026.

Source: Reserve Bank of India press release, 1 September 2026 ↗

What changed: The Reserve Bank raised the overnight ask. For this morning, Wednesday 2 September, it announced an overnight auction of Rs 5,00,000 crore, up from Rs 4,00,000 crore the last two days. Bidding runs 9:30 to 10:00, and the money returns on Thursday 3 September.

Who is affected: Treasury desks bidding this morning, and anyone reading how much spare cash sits in the system.

What to do: The Reserve Bank's stated reason is a review of current and evolving liquidity conditions. Overnight is the window banks fill well, and it is now a quarter bigger.

Last date: Bidding closes at 10:00 this morning, Wednesday 2 September 2026.

Source: Reserve Bank of India press release, 1 September 2026 ↗

What changed: The government has named the four bonds it will buy back on Thursday 3 September: 7.33% GS 2026, maturing 30 October 2026; 5.74% GS 2026, maturing 15 November 2026; 8.15% GS 2026, maturing 24 November 2026; and 8.24% GS 2027, maturing 15 February 2027.

Who is affected: Any bank, finance company or fund holding one of these four bonds.

What to do: The ceiling is Rs 30,000 crore of face value for all four together, and in the Reserve Bank's own words there is no notified amount for the individual securities within it. Offers go on the E-Kuber system between 10:30 and 11:30 in the morning, multiple price method: each accepted offer is bought at the price it was offered at.

Last date: Thursday 3 September 2026. Settlement is on Friday 4 September 2026.

Source: Reserve Bank of India press release, 28 August 2026 ↗

What changed: The Reserve Bank appointed Shri Suman Ray as Executive Director from Tuesday 1 September 2026. He was Regional Director for Maharashtra, with over three decades in the Reserve Bank.

Who is affected: Bankers who deal with deposit insurance claims and Reserve Bank administration.

What to do: Note his charge: the Deposit Insurance and Credit Guarantee Corporation, which pays depositors of failed banks up to Rs 5,00,000 each, and the Premises Department.

Source: Reserve Bank of India press release, 1 September 2026 ↗

What changed: Ujjivan Small Finance Bank's MD and CEO Sanjeev Nautiyal sought early retirement citing health issues and ceased charge on Tuesday 1 September; he formally retires on 30 November 2026. The board named Executive Director Carol Furtado acting MD and CEO, subject to Reserve Bank approval.

Who is affected: Staff and customers of Ujjivan Small Finance Bank, and anyone tracking leadership churn in banking.

What to do: Furtado has over three decades of banking experience. The board will now search for a permanent chief and send its pick to the Reserve Bank.

Source: CNBC TV18, 1 September 2026 ↗

Treasury: 65 paise overnight, 19 paise for seven days, same day, same 5.24 per cent. The tenor decides, not the price. This morning's overnight ask is bigger: Rs 5,00,000 crore.

Investment desk: Four bonds are on tomorrow's buyback list and all four mature within six months. Check the book before Thursday 3 September, 10:30 in the morning.

Branch: The strike on Friday 11 September is followed by Saturday 12 September, the second Saturday, and Sunday 13 September. Tell customers early which days the branch works, and plan cash for the days before.

Operations: The three day strike of Monday 28 September to Wednesday 30 September sits on top of the half yearly closing. Start planning for that week now.

The strike calendar is out. What does a branch do before Friday 11 September?

The United Forum of Bank Unions, nine unions together, announced the dates on Tuesday 1 September.

1. Write the three dates where the whole branch sees them: one day on Friday 11 September, three days from Monday 28 September to Wednesday 30 September, indefinite from Monday 26 October if talks fail.
2. Count the calendar: Friday 11 September is followed by Saturday 12 September, the second Saturday, and Sunday 13 September. Customers may find the branch shut three days in a row.
3. Clear time sensitive work, cheque clearing and salary uploads before Thursday 10 September.
4. The three day strike ends on Wednesday 30 September, the half yearly closing day. That week needs its own plan.
5. Tell customers plainly and early which days the branch works. Know the why, because they will ask: the unions say banks agreed to a five day week by adding 40 minutes to each working day, and the matter has waited over two years.

Source: The Hindu, 1 September 2026 ↗

Check today: Strike news brings strike scams. A caller may claim a branch will be shut for days and push a customer to move money quickly to a safe account. No bank and no regulator ever asks anyone to move money to a safe account. Tell branch staff to say so plainly.

Skill of the week: read an auction result in 60 seconds

Every auction result has four numbers. Notified amount is what the Reserve Bank asked for. Offers received is what banks were willing to give. Cut-off rate is the last price accepted. Weighted average is the price across all accepted offers. When cut-off equals weighted average, as in yesterday's 5.24 per cent, the story is never in the rate. It is in offers against ask: Rs 1,14,320 crore against Rs 6,00,000 crore. Say it as 19 paise per rupee and you sound like the desk head.

Source: Reserve Bank of India press release, 1 September 2026 ↗

19 paise

What banks offered for every rupee the Reserve Bank asked for in the 7 day auction of Tuesday 1 September. The same day, for one night, they offered 65 paise.

Source: Reserve Bank of India press release, 1 September 2026 ↗

2 September — This morning, Wednesday 2 September: the Reserve Bank's bigger overnight auction, Rs 5,00,000 crore, bidding 9:30 to 10:00.

3 September — The government buys back up to Rs 30,000 crore of four of its own bonds, Thursday 3 September, 10:30 to 11:30 in the morning.

8 September — Money locked in the 7 day auction of Tuesday 1 September returns to banks.

11 September — One day nationwide bank strike called by the unions, Friday 11 September.

28-30 September — Three day bank strike, Monday 28 September to Wednesday 30 September, ending on the half yearly closing day.

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