The developments surrounding the proposed bank employees’ strike have taken a new turn after the government directed banks to keep the new Performance Linked Incentive (PLI) scheme on hold. The decision comes just days before the United Forum of Bank Unions (UFBU) is scheduled to begin its proposed strike on September 11, 2026.
The issue is important because the government has not cancelled the new PLI scheme. It has only put the implementation of the PLI for the financial year 2025-26 on hold. The PLI for FY 2024-25 has already been paid to eligible bank employees.
What has happened so far?
The sequence of events has raised questions among bank employees and union members.
The Central Labour Commissioner (CLC) had called the UFBU for a discussion on September 7, 2026 in connection with the issues raised by the banking unions. The meeting was expected to be important as the unions have announced a series of strikes over their demands.
However, the meeting scheduled for September 7 was suddenly rescheduled to September 8.
On the same day, September 7, the government issued a communication to banks asking them to keep the implementation of the new PLI scheme on hold for FY 2025-26.
The timing of the decision has therefore become a major point of discussion among bank employees.
PLI has been put on hold, not cancelled
One of the most important points is the difference between “put on hold” and “cancelled.”
The PLI already paid for FY 2024-25 is not affected by the latest decision. The government’s latest direction concerns the PLI for FY 2025-26.
Therefore, at present, the new PLI scheme has not been withdrawn permanently. Its implementation has only been kept on hold.
This distinction is significant because cancellation of the new PLI scheme is one of the demands of bank employees.
Why is the timing significant?
The government’s decision has come just before the CLC-UFBU discussions and ahead of the September 11 strike.
The CLC may now point to the government’s decision and argue that the issue concerning PLI has been addressed, at least temporarily. There could consequently be an attempt to persuade UFBU to reconsider or defer the September 11 strike.
However, from the unions’ perspective, the question is whether merely keeping the PLI on hold is sufficient.
If the demand is for complete cancellation of the new PLI scheme, then putting its implementation on hold for one financial year does not fully resolve the issue.
September 11 strike remains important
UFBU has proposed an all-India strike on September 11, 2026 as part of its programme of industrial action.
The September 11 strike is therefore being closely watched by bank employees because any decision taken by UFBU after the CLC meeting on September 8 could directly affect the proposed strike.
The unions will have to decide whether the government’s latest action on PLI is enough to reconsider their strike programme or whether they should continue with the announced programme.
What about the indefinite strike?
The issue becomes even more significant because UFBU’s programme does not end with the September 11 strike.
The unions have also proposed another strike from September 28 to September 30, 2026, followed by a continuous/ indefinite strike from October 26, 2026.
This means that the present developments could have implications beyond the September 11 strike.
If an agreement is reached between the government/ management and UFBU, the subsequent strike programme could also be affected. On the other hand, if the discussions fail to resolve the major demands, the unions could continue with their planned programme of agitation.
Bank employees’ main demands
The PLI issue is only one part of the larger dispute. Bank employees are primarily seeking five-day banking and cancellation of the new PLI scheme, among other issues being raised by the unions.
Five-day banking has been a longstanding demand of bank employees and unions. Employees are therefore looking for a concrete decision rather than temporary measures on individual issues.
What could happen next?
The September 8 CLC-UFBU meeting is now likely to be closely watched.
The government’s decision to put the FY 2025-26 PLI on hold could become an important point of discussion during the meeting. The CLC may seek to persuade UFBU that the government’s latest decision should be considered while deciding whether to proceed with the September 11 strike.
However, UFBU will have to consider whether the decision actually meets its demand for cancellation of the new PLI scheme.
For bank employees, the key question is therefore not simply whether PLI has been stopped, but whether the new PLI scheme has been permanently cancelled.
Until there is clarity on this point and on the demand for five-day banking, uncertainty over the proposed September 11 strike and the subsequent strike programme is likely to continue.
The bigger question for bank employees
The latest development has created a situation where UFBU faces an important decision.
If the union forum defers the September 11 strike because the government has put the new PLI scheme on hold, some bank employees may consider it a setback because the scheme has not been cancelled and the demand for five-day banking remains unresolved.
On the other hand, if UFBU continues with the strike programme, the government and bank managements will face greater pressure to resolve the outstanding issues before the proposed September 28-30 strike and the continuous strike beginning October 26.
The September 8 CLC-UFBU meeting could therefore become crucial in determining the next course of action for the banking sector.
