Finance Minister Assures Progress on 5-Day Banking, Pension and Transfer Issues After Meeting with Bank Unions
A delegation of the National Organisation of Bank Workers (NOBW) and the National Organisation of Bank Officers (NOBO) met Union Finance Minister Nirmala Sitharaman on 9 July 2026 at Kartavya Bhawan-1 in New Delhi. The meeting was led by Shri Girish Chandra Arya, In-Charge of the Financial Sector, Bharatiya Mazdoor Sangh (BMS). Senior representatives of NOBW, NOBO and the Indian Overseas Bank Officers Association (IOBOA) also attended the meeting. The discussion lasted for more than one hour and focused on several important issues related to the banking industry, bank employees and pensioners.
Concern Over Harassment of IOBOA Members
During the meeting, leaders of the Indian Overseas Bank Officers Association (IOBOA) informed the Finance Minister that their members were allegedly facing harassment, intimidation and unfair treatment by the bank management. They also claimed that union office-bearers were being transferred as a form of retaliation and that there was discrimination against IOBOA members.
Demand for Equal Treatment of All Bank Unions
The delegation raised concerns that minority trade unions are often excluded from Industrial Relations (IR) meetings and policy-making discussions at banks. They said that although all nine banking unions participate in industry-level agreements, minority unions are not given equal representation at the individual bank level.
After hearing these concerns, the Finance Minister assured the delegation that the issue would be addressed. She directed the concerned officials to ensure that all banks publish a calendar for Industrial Relations meetings, invite every recognised trade union, including minority unions, and closely monitor compliance.
Update on 5-Day Banking
The delegation also discussed the long-pending demand for a five-day banking week. They informed the Finance Minister that the proposal had already been agreed upon between the Indian Banks’ Association (IBA) and bank unions and was awaiting government approval.
According to the circular, the Finance Minister said that the implementation process is already underway and the issue is expected to be resolved soon. She stated that bank employees can expect positive developments in the near future as the required approvals are being completed.
Pension Issues Raised Before the Government
The delegation highlighted several pending issues affecting retired bank employees. These included pension updation on RBI lines, annual revision of ex-gratia payments, health insurance for pensioners at the bank’s cost, removal of DA discrimination between pre-November 2022 and post-November 2022 pensioners, a final pension option for retired employees who missed earlier opportunities, and retrospective pension benefits for employees who resigned before becoming eligible.
The Finance Minister assured the delegation that these issues would be considered positively.
Next Wage Settlement
The union representatives thanked the Finance Minister for directing Public Sector Bank CEOs to begin preparations for the next wage settlement. They said the goal is to complete negotiations within the next 12 months so that the 13th Bipartite Settlement can be implemented from 1 November 2027.
The Finance Minister instructed the Joint Secretary to monitor the progress closely and ensure that the new settlement becomes effective from the scheduled date.
Transparent Transfer Policy Discussed
The delegation also raised concerns about the transfer policy in banks. They alleged that some bank managements favour majority unions while discriminating against minority unions and their members during transfers.
According to the circular, the Finance Minister assured that the transfer policy would be reviewed. She also said that the extensive protection currently given to office-bearers of majority unions would be examined to ensure transparency, fairness and accountability in bank transfer policies.
Finance Minister Assures Positive Action
The meeting concluded with the Finance Minister assuring the delegation that the issues raised would receive positive consideration. NOBW and NOBO thanked the Finance Minister for giving them the opportunity to present the concerns of bank employees and pensioners and expressed hope that necessary action would be taken soon.
