In a decisive intervention, the Union Finance Ministry has issued a strong advisory to all State Governments, urging immediate measures to safeguard bank staff amid rising incidents of verbal and physical abuse by customers. The advisory, sent by M. Nagaraju, Secretary of the Department of Financial Services (DFS), follows sustained pressure from banking unions and their recent agitation highlighting the growing vulnerability of employees working on the frontlines of India’s banking infrastructure.
In his letter to all Chief Secretaries of States and Union Territories, Nagaraju underscored the importance of ensuring uninterrupted public access to banking services, which are essential not just for routine financial needs but also for accessing government welfare benefits, particularly through Direct Benefit Transfers (DBT). The advisory notes that there have been several disturbing instances, reported both in mainstream media and on social media platforms, involving aggressive and unlawful behaviour by anti-social elements inside bank branches. These incidents range from verbal abuse and intimidation to physical assault and disruption of operations.
The letter calls for urgent sensitisation and action by district magistrates and police authorities. State administrations have been asked to prevent such incidents by deploying law enforcement personnel during peak banking hours at vulnerable locations. In the event of an assault, the response must be prompt and effective, and strict action should be taken under the relevant legal provisions to deter future occurrences. The communication emphasizes that only a firm stance from law enforcement can ensure the safety of employees and preserve public confidence in the banking system.
This intervention by the central government came in the wake of renewed concerns raised by the United Forum of Bank Unions (UFBU), which represents nearly a million employees and officers across banks. In a recent circular, UFBU General Secretary C.H. Venkatachalam warned of a worsening situation in bank branches, where a stressed customer service environment has become fertile ground for abuse. During a conciliation meeting with the Chief Labour Commissioner, union representatives narrated instances of unruly customers attacking employees and using foul language when faced with delays in services such as cash disbursement, Aadhaar-related transactions, or grievance resolution.
Venkatachalam noted that bank employees, particularly in public sector branches, are frequently at the receiving end of public anger for systemic failures beyond their control. The union had earlier demanded the deployment of security personnel and armed guards in vulnerable branches, in addition to strict action against miscreants by both bank managements and state administrations. In the same meeting, the DFS assured unions that the matter would be escalated to higher authorities — a promise that has now materialised with the June 4 advisory.
In its earlier investigations, Biznewsweek had reported on the increasingly fragile service environment inside bank branches, particularly in semi-urban and rural areas. In its February 2025 story, “India’s Banking Frontlines: Overburdened, Under-Protected”, the publication had highlighted how bank staff were being overwhelmed by workload pressures, compliance duties, and customer frustrations, often without adequate staffing or security support. The current situation, as described by union leaders, has only worsened since then.
While bank employees remain the most visible face of India’s financial inclusion drive, they are seldom treated with the respect and protection afforded to other frontline service providers. The April 2025 Biznewsweek article, “The Fragile Trust in India’s Financial Delivery Chain”, detailed how delays in DBT payments and biometric authentication failures had triggered chaotic scenes in branches across states like Bihar, West Bengal, and Maharashtra — often culminating in verbal abuse or physical confrontations.
The DFS advisory has also been circulated to key stakeholders including the Indian Banks’ Association, the Chairperson of the State Bank of India, and the managing directors of all public sector banks. These institutions have been instructed to review recent incidents and proactively engage with local authorities to ensure the safety of their staff.
Union leaders, while welcoming the advisory, remain cautious. Venkatachalam told Biznewsweek that actual implementation on the ground will be the true test of intent. “Issuing advisories is not enough. District authorities must act, and banks should install security personnel in every branch. Our members are exhausted and anxious. The morale is at a historic low,” he said.
Banking insiders suggest that the advisory is a welcome but long overdue step in recognizing the real-world risks faced by branch staff. Many employees believe that unless these measures translate into action — from better security infrastructure to strict criminal prosecution of offenders — the advisory risks being another paper promise in an increasingly volatile banking landscape.