Today, a meeting was held between UFBU, IBA and DFS regarding the implementation of 5-Day Banking. The discussions were held on PLI scheme.
Conciliation meeting focussed on the Performance Linked Incentive (PLI) payment issue in banks. The meeting was held on 9 March 2026 under the Office of the Chief Labour Commissioner (CLC), Ministry of Labour & Employment, Government of India. The meeting was conducted to discuss the dispute between bank unions and management regarding the payment of PLI to bank officers.
During the meeting, representatives of various bank unions and associations as well as representatives from the Department of Financial Services (DFS), Indian Banks’ Association (IBA), and bank management were present.
Unions Raised Objection on PLI Payment up to Scale III
During the meeting, union representatives stated that many banks have made PLI payments to award staff and officers up to Scale III even though the matter is under consideration at CLC.
The unions expressed strong dissatisfaction over this action. They said that since conciliation proceedings on the PLI issue were already pending, banks should not have made payments up to Scale III before the matter was fully resolved. According to them, this decision created a stalemate in further discussions during the meeting.
DFS Clarified Position on PLI Payment
Representatives of the Department of Financial Services (DFS) clarified that the payment of PLI up to Scale III was made strictly according to the provisions of the bipartite settlement and joint note, which is not under dispute. They also mentioned that there had already been a considerable delay in the payment of incentives, and therefore the payment was released.
DFS further informed that PLI payments for officers from Scale IV and above will be made according to the new PLI scheme issued through a letter dated 19 November 2024.
Unions Demand PLI for Scale IV to VII under Old System
The representatives of the unions also raised another demand during the meeting. They said that PLI payment for officers from Scale IV to Scale VII for the financial year 2024-25 should also be made according to the existing provisions of the bipartite settlement and joint note, and not under the new scheme.
However, the unions stated that they are open to further discussions regarding the new DFS PLI scheme for the financial year 2025-26.
The unions also warned that if the payment for officers from Scale IV and above is made under the new scheme, it could lead to significant cost escalation for banks, which may affect the banks’ profits and create other related issues.
IBA Asked to Provide Comparative Estimates
After hearing the arguments from both sides, the Conciliation Officer advised the Indian Banks’ Association (IBA) to submit detailed information within 10 days to the Chief Labour Commissioner (CLC) and DFS.
IBA has been asked to provide comparative estimates of PLI payments for the financial year 2024-25 for officers from Scale IV to Scale VII under both systems:
- PLI as per the bipartite settlement/joint note, and
- PLI as per the new PLI scheme introduced by DFS.
This comparison will help authorities understand the financial impact of both options before taking a final decision.
CLC May Write to DFS Regarding Union Demand
It was also suggested during the meeting that the Chief Labour Commissioner’s office may write to the Department of Financial Services requesting them to consider the unions’ demand.
The request would be to allow PLI payment for Scale IV to VII for the financial year 2024-25 under the existing bipartite settlement/joint note provisions. Officials believe that such a step could help maintain industrial harmony in the banking sector.
Next Meeting Likely Before Mid-April 2026
At the end of the meeting, both sides agreed that some issues are still unresolved. Therefore, it was mutually decided that the remaining matters will be discussed in the next conciliation proceedings.
The meeting was formally adjourned, and the next date will be decided later. However, it is expected that the next meeting may be held before mid-April 2026.
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