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Informist, Tuesday, Sept. 8, 2026

NEW DELHI – Finance Minister Nirmala Sitharaman Monday met a delegation of bank employees representing various public sector banks and decided to keep the performance-linked incentive scheme for 2025-26 (Apr-Mar) in abeyance following issues raised by employees, the finance ministry said in a press release.

The delegation, led by the Bharatiya Mazdoor Sangh, voiced several issues relating bank employees, including a review of ex-gratia, medical facilities for retired employees and changes to the existing PLI structure for public-sector bank employees, it said.

"The concerns expressed by bank employees were taken cognizance of, and in response to the representation received on the PLI structure, it was decided to keep in abeyance the implementation of the PLI Scheme dated 19.11.2024 (Nov. 19, 2024) for FY 2025–26 and take up the same during the ongoing Bipartite Settlement/ Joint Note discussions," the ministry said. The government is committed to resolve issues through dialogue, consultation and mutual understanding in the larger interest of bank employees, customers and the banking sector, it added.

The decision comes as the United Forum of Bank Unions, an umbrella body of bank unions, has called for a day's strike on Friday, a three-day strike Sept. 28-30, and an indefinite strike from Oct. 26. The strikes have been called by the United Forum of Bank Unions on behalf of its seven constituents--All India Bank Employees' Association, All India Bank Officers' Confederation, National Confederation of Bank Employees, All India Bank Officers' Association, Bank Employees Federation of India, Indian National Bank Employees Federation, and Indian National Bank Officers' Congress.

The unions have objected to the government's PLI structure for officers in Scale IV and above. They have argued that the incentive should instead be linked to the overall performance of individual banks and applied uniformly to employees and officers up to Scale VII, based on an understanding reached with the Indian Banks' Association, as per reports.

The strike is also likely in connection with the unions' long-standing demand for a five-day work week for banking sector employees, among other pension related issues. The proposal for a five-day work week for banking services was made to the government two years ago but has not been taken up yet. Unions have called for strikes demanding a five-day work week in the past as well. End

Reported by Pratiksha

Edited by Akul Nishant Akhoury

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