Bank Unions meeting held with IBA, Know Discussions held

The All India Bank Employees’ Association (AIBEA) has informed that talks were held with the Indian Banks’ Association (IBA) on September 26, 2025. The discussions took place after a strike notice was given earlier.

One of the key issues was the Performance Linked Incentive (PLI) scheme. The government had proposed a new formula for officers of Scale IV and above, which was different from the scheme agreed in the Bipartite Settlement. Bank unions said that while the government’s formula could apply to top management, the PLI agreed in settlements should not be denied to employees and officers. They also asked for improvement in the quantum of PLI.

The IBA agreed to communicate these points to the Chief Labour Commissioner (CLC) and the Department of Financial Services (DFS) for further consideration. The matter will again be discussed in the next conciliation meeting with the CLC on October 15, 2025.

Other important issues raised by the unions included:

• Early introduction of 5-day banking
• Finalising the Leave Bank scheme
• Ex-gratia for staff in private banks
• Exemption of GST on medical insurance premiums
• Pension scheme option for remaining employees and retirees
• Uniform DA rates for pensioners at 8088 points
• Income tax exemption on extra 4% NPS contribution
• Higher ceiling on gratuity
• Recruitment of sub-staff and armed guards
• Advisory to stop abusive language against branch managers and staff

During the meeting, IBA also said that it had taken up the matter of tax exemption on medical insurance premiums with the Finance Ministry and GST Council.

It was also clarified that under the new Add-on facility in the medical insurance scheme, dependent children of retirees who are physically or mentally challenged can be covered.