Finance Ministry Directs Public Sector Banks to Hold Regular Meetings with Employee Unions
The Department of Financial Services (DFS), Ministry of Finance, has issued a new advisory to all Public Sector Banks (PSBs), asking them to hold regular and structured Industrial Relations (IR) meetings with recognised employee unions and officers’ associations. The letter, dated 10 July 2026, has been sent to the Chairman of the State Bank of India (SBI) and the Managing Directors & CEOs of all nationalised banks.
Why the Government Issued This Direction
The Finance Ministry said that good Industrial Relations (IR) are important for maintaining healthy employer-employee relations, ensuring organisational stability, increasing employee engagement, and providing uninterrupted banking services.
The Ministry stated that regular discussions between bank management and recognised employees’ unions and officers’ associations help resolve issues through consultation, build mutual trust, and create a better working environment.
Concern Over Lack of Regular Meetings
The Department of Financial Services said it has received information that interactions between the management of Public Sector Banks and recognised unions or associations are not being conducted regularly or in a structured manner across all PSBs.
To address this issue, the Ministry has asked banks to establish a uniform system for periodic meetings. The objective is to ensure regular dialogue, timely resolution of issues, and stronger industrial relations.
Quarterly Meetings Made Mandatory
The Finance Ministry has advised all Public Sector Banks to institutionalise Periodic Structured Industrial Relations (IR) Meetings with recognised workmen unions, officers’ associations, and welfare associations (where applicable).
According to the advisory, every bank should ensure that all recognised unions and associations at the central level are covered through structured meetings during every quarter of the calendar year.
Annual Meeting Calendar to Be Prepared
The Ministry has also directed banks to prepare an annual calendar at the beginning of every year. This calendar should clearly mention the dates of meetings with all recognised unions and associations for each quarter so that discussions take place regularly and in a planned manner.
Senior Officers Must Represent the Bank
The advisory states that every meeting should be represented by a bank official who is not below the rank of General Manager and is heading the Human Resources (HR) or Industrial Relations (IR) function. This is intended to ensure meaningful discussions and faster decision-making.
Agenda and Follow-Up Required
Banks have been advised to obtain agenda items from the concerned unions or associations before the meetings. The minutes of every meeting should be recorded properly, and the status of action taken on the issues discussed should be reviewed in future meetings.
Calendar for Remaining Six Months by 15 July 2026
Since the current calendar year is already in progress, the Finance Ministry has instructed all Public Sector Banks to issue a meeting calendar for the remaining six months by 15 July 2026. The calendar should include meetings with all recognised workmen unions, officers’ associations, and recognised welfare associations, wherever applicable.
From the next calendar year onwards, banks should issue the annual meeting calendar at the beginning of every year as a regular institutional practice.
Objective of the New System
The Ministry has said that banks should implement this mechanism in both letter and spirit. The aim is to promote constructive engagement between management and employee representatives, strengthen industrial relations, and ensure timely resolution of issues through continuous dialogue.
The circular has been issued with the approval of the competent authority and has been signed by Vijay Shankar Tiwari, Under Secretary to the Government of India, Department of Financial Services.
