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The Department of Financial Services (DFS), Ministry of Finance, has decided to keep the payment of Performance Linked Incentive (PLI) to senior executives of Public Sector Banks (PSBs) on hold for the financial year 2025-26.
Recently, Public Sector Banks have paid the PLI to senior executives for financial year 2024-25. As soon as PLI was credited, a big chaos was observed in the entire banking industry. UFBU announced All India Strike on 11 September 2026 against new PLI scheme and demanding 5-day Banking.
In a letter dated September 7, 2026, the Department of Financial Services informed the Chairman of State Bank of India and the Managing Directors and Chief Executive Officers of all nationalised banks about the decision to put payment of new PLI scheme on hold.
According to the letter, representations were received from bank employees regarding the PLI scheme. After considering the matter, the government has decided that the payment of PLI to PSB executives in Scale IV to VIII for FY 2025-26 will remain in abeyance until further orders.
This means that the PLI payment will not be released for now.
The Department of Financial Services has also said that the issue will be taken up during the ongoing 13th Bipartite Settlement and 10th Joint Note discussions. This means that discussions will be held between UFBU and IBA on the new PLI scheme.
But one point needs to be highlighted – the new PLI scheme has not been put on hold. Only the payment of PLI to senior executives for the financial year 2025-26 has been put on hold. PLI payment for financial year 2024-25 has already been done.
Senior executives have already received the PLI amount for financial year 2024-25. Only the payment of PLI for financial year 2025-26 has been put on hold.
UFBU and Bank Employees demanded the Government to withdraw the new PLI scheme but the Government has not withdrawn the scheme. Only the payment of PLI has been put on hold.
