A meeting was held yesterday (15 April 2026) between UFBU and IBA regarding discussion on ex-gratia amount for Pensioners.
Discussion was held on ex-gratia amount paid to pensioners and no positive discussion held on Pension updation, 5 Day Banking and PLI.
First understand what is Ex-gratia?
Ex-gratia amount for pensioners is a special financial payment given as a goodwill gesture, not as a legal entitlement like regular pension. For bank pensioners, it is being paid to those who retired before November 2022 as a temporary relief because the demand for pension updation is still pending.
This amount is paid monthly along with the pension for a fixed period of five years, from November 2022 to October 2027, and is subject to annual review. It does not form part of the basic pension and can be revised, continued, or discontinued based on decisions by authorities.
The main purpose of ex-gratia is to provide some financial support to pensioners in view of rising expenses and delay in pension revision, but it does not replace the need for a proper pension increase.
What discussions took place in meeting?
IBA convened a bipartite meeting with UFBU yesterday i.e. 15-4-2026. IBA team was led by Shri Rajneesh Karnatak, Chairman of the Negotiating Committee (MD-CEO, Bank of India) along with Shri Ashok Chandra, MD-CEO, PNB, Shri Rakesh Sharma, MD-CEO, IDBI Bank, Shri G S Rana, DMD, SBI, Shri. Gopal Murli Bhagat, Dy. Chief Executive, IBA and Shri Arvind, Mishra, Sr. Advisor-HR&IR, IBA.
In the 12th Bipartite Settlement/9th Joint Note, it was agreed to extend some ex-gratia amount as lumpsum and accordingly Ex-gratia amount is being paid every month to all the pre-November, 2022 pensioners.
This fixed ex-gratia amount is payable for 5 years from November, 2022 to October, 2027. There is also a provision in the Settlement/Joint Note for annual review of the ex-gratia amount. Hence this meeting was held to discuss about the ex-gratia for the current financial year 2026-27.
IBA informed that in the present circumstances, the same ex-gratia amount can be continued.
UFBU said that all the remaining private banks who have not yet implemented the ex-gratia payment should be advised to implement the ex-gratia payment.
UFBU also demanded that looking to the better performance and financial results of the Banks, the ex-gratia amount can be upwardly revised.
IBA informed that it needs to consult the Government of India regarding this and hence it is not possible to consider any change in the ex-gratia amount and the existing ex-gratia amount would be continued.
UFBU also pointed out that the main issue of updation of pension is also pending under the plea of litigation and some solution has to be found for the same.
UFBU also pointed out that the demand for introduction of 5 days banking per week and also to sort out the PLI issue through bilateral discussion, and other residual issues need to be taken up for discussion. IBA said that another meeting will be arranged at the earliest when all these issues could be taken up for discussion.
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