The All India Bank Officers’ Confederation (AIBOC) has informed its affiliates that the United Forum of Bank Unions (UFBU) will soon hold a meeting to discuss several important issues affecting bank employees and officers. These include the demand for a 5-day banking week, the Performance Linked Incentive (PLI) scheme, pension-related issues and the upcoming wage settlement talks.
5-Day Banking Demand Still Pending
UFBU said it has been continuously pursuing its major demands, including the introduction of a 5-day banking week and a negotiated PLI scheme. These issues are currently under conciliation before the Chief Labour Commissioner under the Ministry of Labour following the strike notice given by the unions.
The unions said the Government remained negative and did not respond to the demand for a five-day banking week. As a result, bank employees observed a nationwide protest strike on 27 January 2026. However, even after the strike, discussions with the Indian Banks’ Association (IBA) and the Government did not lead to any progress.
UFBU Opposed Government’s PLI Decision
UFBU alleged that the Department of Financial Services (DFS) later directed banks to pay PLI for 2024-25 to all employees and officers up to Scale III. It also instructed banks to pay PLI to Scale IV officers and above using a unilateral formula decided by the Government.
The unions opposed this decision, saying it violated the Bipartite Settlement (BPS) and Joint Note. UFBU announced an agitation and warned of an immediate strike within 24 hours if the revised PLI scheme for Scale IV and above officers was implemented.
High Court Hearing Scheduled for October
The PLI dispute has reached the High Court. UFBU said its arguments have been properly presented before the court. The next hearing in the case is scheduled for 6 October 2026.
The unions also said there is currently no indication that the Government or banks will implement the revised PLI scheme immediately. During discussions with the IBA, UFBU expressed its willingness to discuss the PLI scheme further and make suitable modifications if required.
Demand to Pay PLI Under Existing Formula
UFBU has decided to ask the DFS and the IBA to implement PLI for Scale IV officers and above for the years 2024-25 and 2025-26 according to the existing formula under the Bipartite Settlement and Joint Note. The unions said senior officers should not be deprived of the PLI that has already been paid to other employees and officers.
Agitation Put on Hold for Now
Since there is no immediate move by the Government or banks to implement the revised PLI scheme, UFBU has decided to keep its agitation programmes on hold for the time being. However, it warned that if any attempt is made to implement the revised PLI scheme, the unions will immediately go on strike. All union units and members have been asked to take note of this decision.
New DFS Secretary to be Approached on 5-Day Banking
UFBU said a new Secretary has taken charge in the Department of Financial Services. The unions plan to meet the new Secretary through a delegation to explain the demand for a five-day banking week and request early implementation of the proposal.
Pension and Wage Settlement Issues Also on Agenda
UFBU said it is also pursuing several other long-pending issues, including:
- Pension updation
- Revision of Ex-gratia
- Uniform Dearness Allowance (DA) formula on pension
The unions added that the DFS has advised all banks and the IBA to begin the process for the early completion of the 13th Bipartite Settlement (BPS) and the 10th Joint Note negotiations.
Government to Form High-Power Committee
The Government has also decided to set up a High-Power Committee to take forward its agenda on banking sector reforms. UFBU said all these developments will be discussed in its upcoming meeting, which will be convened shortly.
