In recent years, there have been significant changes in the banking sector in India, both technical and operating significant changes. Despite these comrades, a worrying trend is becoming increasingly clear – a large number of bank employees in India today appear to be more concerned about their salaries, allowances and job safety than the quality of their services or responsibilities assigned to them. This attitude is not only damaging the reliability of banks as customer-focused institutions, but also causing long-term structural challenges in the functioning of the financial system. Despite repeated reforms and efforts to bring systemic changes by the government and the Reserve Bank of India (RBI), the problem has remained and has been increasing in the last few decades.
In 1969, there was a large nationalization in the Indian banking sector under the leadership of Prime Minister Indira Gandhi, when 14 major commercial banks were taken under government control. The purpose of this decision was to ensure that banking services reach the poor and marginalized people. For some time, this approach flushed. Employees of these nationalized banks were seen as a carrier of social upliftment. He opened farmers’ bank accounts, distributed loans to self -help groups and ensured that banking reached remote corners of the country. However, in the 1990s, when India began liberalization of its economy in 1991, the landscape gradually changed. The entry, technological upgradation and competitive pressures of private banks began building a dual culture in the banking sector. On the one hand there were customer-focused, efficient private sector banks; On the other hand, traditional and bureaucratic public sector banks.
By the beginning of the 2000s, public sector banking employees began to feel the pressure of modernization. With the introduction of Core Banking Solutions (CBS) around 2005, banks were expected to handle transactions in real -time in their branches. Although it was a major technical leap, it also highlighted the lack of willingness to adapt to new systems among many bank employees. In public sector banks, in particular, opposition to change became a recurring subject. Employees who had worked in the traditional banking system for decades had difficulty in coordinating with fast-paced digital needs. Instead of training and effort in learning, many employees began to prioritize job safety and increment through union negotiations, which reduced their concern for improving real performance or service distribution.
Many bank employees, especially in public sector banks, moved towards increment, bonus and early promotion. The annual salary modification became the most awaited event for employees, while customers often faced indifferent behavior, long waiting queues and unresolved questions. The concept of service excellence was left behind. For example, despite several complaints about the difficulties faced by rural and semi-urban account holders, updating ATMs, passbook updates or debt distribution, many bank employees remained indifferent. His participation in the protests of salary amendment often overshadowed his commitment to customer satisfaction.
By 2010, it had deepened the separation. While schemes like Pradhan Mantri Jan Dhan Yojana (launched in 2014) were aimed at making banking more inclusive, many leading bank employees showed very little enthusiasm in assisting illiterate or rural customers. During this time several reports came out in which bank employees were not ready to explain the schemes, fill the form or help the elderly use the digital banking system. For him, such responsibilities were considered “additional work” for which no additional salary or allowance was given. This notion reflects the mentality of increasing transactions in the employees-a mentality that looked at every work from a personal financial advantage rather than service-oriented.
During demonetisation in November 2016, when Prime Minister Narendra Modi declared 500 and 1000 rupee notes invalid, long queues were seen outside banks across the country. It was a real litmus test for banking employees across India. While employees of many private banks worked overtime and showed commendable commitment, the performance of public sector banks was uneven. Employees in many branches reached late, left early and took long holidays, while desperate citizens were waiting in queues. There were also comprehensive complaints of misconduct, lack of sympathy and deliberately slowing the process. The thing that came out during this period was that many employees were worried about their extra hours of salary and allowances more than a wide national requirement. The incident further highlighted the attitude of several bank employees, which preferred monetary compensation compared to public service.
After demonetisation, when the government and RBI emphasized on digital banking, many employees opposed these changes. To move towards digital transactions, bank employees were required to educate customers, especially the elderly and who do not have smartphones. However, instead of taking initiative, many employees only showed the posters to the customers or asked them to call the customer care number. They were not motivated to explain the UPI or Mobile Banking Apps as it was not “officially assigned” or no remuneration was given for it as a duty. This culture of minimum work became even more clear until the order and award is clearly given.
The 2020 Kovid-19 epidemic further exposed these shortcomings. Banks were declared essential services and continued to work, but many employees abstained from interaction with customers by making excuses for epidemic. Even basic services such as cash withdrawal or loan assistance were delayed on the pretext of covid sanctions. Despite getting full salary including allowances and bonuses, many bank employees did not show any initiative to provide uninterrupted services to the needy. On social media, many customers openly complained how bank employees were focusing more on ensuring their safety rather than helping the weaker people – especially migrant workers, senior citizens and women who needed immediate financial assistance during the lockdown.
By 2023 and 2024, India made remarkable progress in digital banking. UPI had revolutionized small payments, government welfare transfer was straight and intensified, and many financial services were now available through mobile apps. However, the irony is that the role of human touch in banking had become even more important, especially for those who were digitally illiterate. The need of patient and intelligent employees was immediately. But the situation worsened. Bank employees were on strike for salary amendment, better pension benefits and demand for relaxation in work hours. Nevertheless, there was no significant improvement in their desire to take responsibility for customer service, transparency or financial education.
Recently, in early 2025, several bank unions launched a nationwide strike demanding the implementation of the 12th bilateral agreement for salary amendment. It is natural for employees to demand better salary, but many observers were surprised by its time and method. The strike took place just before the end of the financial year, when millions of citizens were trying to file income tax returns, close accounts or make necessary transactions. Many branches remained closed. When he was questioned, union leaders justified the strike citing “Employees Welfare”. However, there was hardly any discussion about the inconvenience or service disruption of the customers.
This outlined a rigorous reality – today bank employees, especially in public sector banks, appear more concerned about personal financial benefits than the broad mission of public service.
It is worth checking why this mentality has become so popular. Its root lies in the bureaucracy of Indian public sector banks. Promotion is often based on seniority rather than performance. Annual assessments are weak, and customers’ response rarely affect career development. As a result, many employees simply “wait” their term, waiting for years until the next promotion or retirement. This creates a culture of self -consciousness. New employees, who can be recruited with idealism and energy, when they see that senior employees are ignoring their duties without any result, they get frustrated soon. In addition, unions in public sector banks often defend poorly in the name of solidarity, making it difficult for management to take disciplinary action.
In contrast, private sector banks, which have strong performance-related incentives and tough monitoring, often see high levels of accountability of employees. However, there is so much pressure that there is a decrease in the number of employees. Nevertheless, an average private bank shows more readiness to assist customers, promote new services and adopt technology. The difference between public and private sector bank employees is clearly visible when someone goes to a branch – where one side shows signs of energy and ambition while the other shows symptoms of fatigue and isolation.
In India, banks are more than only financial institutions. For millions of people, especially in rural and semi-urban areas, banks represent trust, safety and opportunities. These are the places where people collect their lifetime savings, take loans for child education, or expect guidance on government schemes. When bank employees fail to respect this belief, it causes isolation and disappointment. When customers, especially uneducated or elderly citizens are banished, ignored, or ridiculed, this class further strengthens the division. This is not only unprofessional – it is also inhuman.
It is important to understand that this problem is not omnipresent. There are still countless bank employees in India who are honest, dedicated and customer-centered. But they often work in a system that does not give importance to honesty or initiative. Their efforts do not get recognition, while union -backed loud voices become the subject of discussion. As long as this culture does not change from within, India’s banking sector will continue to face this difference between the expectations of customers and the service of employees.
As we are moving towards 2025, the need to remove this imbalance is increasing even more. Banks must start rewarding performance, customer response and service distribution. The training program should not only be focused on compliance, but also on emotional intelligence, communication and digital literacy. Employees should be realized that their work is not only a means of earning salary, but it is the responsibility of serving the society.
It is a sad irony that institutions based on public confidence are now suffering due to the same people whose work is to maintain that belief. Although salary is a valid concern, it cannot be the only inspiration to work in the bank. The current scenario, where most employees prioritize salary compared to service, is not durable. If it is not resolved immediately, it will further reduce the confidence of the people in banking institutions and widen the gap between financial inclusion goals and ground reality. The government, bank management and employees themselves should consider the change in this attitude deeply and should work collectively to restore the dignity, discipline and duty that banking in India once represents proudly.
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