Government never agreed to 5-day work week for banks, facts being twisted: Official sources

A finance ministry official stated prior to the United Forum of Bank Unions' (UFBU) three-day strike scheduled for September 28–30 that the government never agreed to a five-day workweek for banks because this crucial demand has not been fulfilled.

"During the most recent pay discussions, the five-day workweek was never agreed upon. It was never used as a bargaining chip. The official, who wished to remain anonymous, stated, "They (bank unions) are distorting the facts."

In a letter dated September 22, the All India Bank Officers’ Confederation said there had been no response to this demand “which was agreed and signed in March, 2024 under the last wage revision settlement”. The letter added that officials from the Indian Banks’ Association (IBA) had informed union representatives that the issue of five-days banking is “under consideration by the Government”.

Currently, bank branches are open on the first, third, and fifth Saturdays of every month.

IBA has accordingly recommended to the Government. The due changes in the working hours, will be effective after approval by the Government of India and necessary clearances from Government / Reserve Bank of India,” the Settlement said.

However, the finance ministry official asserted the government had not agreed to a five-day work week, although a lot of other concessions were made.

“The IBA didn’t want to go beyond an 11% hike in the wage negotiations, but the government intervened and a hike of 17% was announced. Even on the issue of family pension, the IBA was not keen but the government said that post-retirement, they will be on the other side, and they should not fight it,” the source said, adding that the performance-linked incentive (PLI) scheme had been kept on hold for the current financial year following opposition.

Announced in November 2024, the PLI scheme for public sector banks’ employees faced intense pushback and was called “discriminatory” because it was only for Scale 4 officers and above. According to bank unions, the scheme is divisive, demotivating, and distortionary.

With the three-day strike that begins on Monday in mind, the government on Wednesday said public sector banks and regional rural banks will function as normal on September 27, Sunday. The decision, the Ministry of Finance said, was being taken to ensure “genuine banking needs” of the public are not hindered for an extended period.

With September 26 being a non-working Saturday for banks, the three-day strike would have led to banks being shut for five days in a row.

The RBI has given its approval for all bank branches, offices, ATM-linked branches, and currency chests to remain “fully operational” on Sunday, the finance ministry further said on Wednesday.

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This Bank announces compensation for employees working on Sunday

Compensation for workers on Sunday, September 27, 2026, has been announced by Union Bank of India. Due to the impending strike from September 28–30, 2026, Union Bank of India has instructed all branches to stay open on Sunday. 

According to Union Bank, all officials who are called to official work on Sunday, September 27, 2026, will be eligible for compensatory off-the-pocket expenses of Rs. 2000 due to the opening of branches and offices as described above. Compensatory off is the first of these two advantages, and out-of-pocket payments may be offered in extraordinary circumstances where compensatory leave is not practical due to public emergencies.

The Compensatory Off or Out of Pocket Expenses shall be provided only to Officers, who had worked minimum 6 hours on that particular day.

Further, Award Staff, who are working on 27.09.2026, will be eligible for payment of Overtime Allowance as per Bipartite Settlement

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RBI authorizes banks to open on Sunday

The Reserve Bank of India has authorized the opening of banks on Sunday, September 27, 2026. IBA had asked the RBI for approval to open banks on Sunday. RBI stated that you have our permission to maintain bank branches, offices, ATM link branches, and currency chests fully functioning on Sunday, September 27, 2026, in order to ensure that the public's legitimate banking needs are not negatively impacted for an extended duration. 

In this regard, the banks can be recommended to make sure that pertinent legal obligations are followed. The RBI has granted permission for bank employees to go on strike from September 28 to September 30, 2026. Since September 26 and 27 fall on the fourth Saturday and Sunday, respectively, banks will be closed.

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Latest Update on Bank Strike for 3-Day from September 28–30

The United Forum of Bank Unions (UFBU) has decided to proceed with its proposed three-day nationwide bank strike on September 28, 29 and 30, 2026, following a conciliation meeting convened by the Ministry of Labour on September 22.

The decision was communicated through UFBU Circular No. 2026/26 dated September 22, 2026, issued to all affiliated unions and members.

According to the UFBU circular, a conciliation meeting was conducted by the Deputy Chief Labour Commissioner (Dy. CLC), Ministry of Labour, Government of India, in New Delhi. Representatives of UFBU, the Indian Banks’ Association (IBA), Department of Financial Services (DFS), and bank managements participated in the meeting.

During the meeting, UFBU reiterated its demand for the implementation of 5-Day Banking, which, according to the union, was agreed upon and signed in March 2024 under the last wage revision settlement.

The IBA informed the meeting that the PLI scheme for Scale IV officers and above has been kept in abeyance as per Government instructions and that the matter would be discussed further at the bipartite level.

Regarding 5-Day Banking, IBA stated that the issue is currently under consideration by the Government and appealed to UFBU to reconsider and defer the strike.

Representatives of the DFS, Ministry of Finance, also stated that the Government is considering the 5-Day Banking issue and needs to take into account the views of various stakeholders before arriving at a decision. DFS therefore requested UFBU to defer the proposed strike and continue discussions.

UFBU stated that it had expressed its strong protest against what it described as measures by managements and other authorities intended to discourage employees and officers from participating in the strike.

The union also raised concerns regarding alleged pressure on Scale IV and above officers and Probationary Officers, stating that such measures should be avoided.

UFBU further informed the authorities that if there is any concrete and positive development towards implementation of 5-Day Banking, the federation would consider the same.

However, in the absence of such a development, UFBU stated that it would proceed with the proposed strike.

Following the conciliation meeting, UFBU has called upon all its affiliated unions and members to implement the three-day strike on September 28, 29 and 30, 2026.

The development keeps the possibility of disruption to banking services during the three-day period, although the impact on individual branches and banking services will depend on participation and applicable arrangements.

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Gold Loan Scam of more than one crore in Bank in Uttar Pradesh

At the Federal Bank's Rajnagar branch, fraudulent gold loans totaling around ₹1.46 crore have been discovered. The jewelry pledged in 20 loan accounts was found to be fraudulent during a bank inquiry. Rubik Fintech was used to refer 17 of these accounts. In every instance, the valuer is the same. Six people each borrowed gold from two accounts. The bank filed a report, and the Kavinagar police station has opened a case against 18 suspects.

Shazia Bano, the senior manager of the bank, has lodged a police report. Delhi Gate resident Deepanshu Bansal went to the Federal Bank branch in Rajnagar with an unidentified individual to obtain a gold loan by surrendering gold jewelry.

Harsh, a representative of Rubik Fintech, was with him. Gold loan appraiser Deepak Dhalla verified the item as authentic. But after reexamining the jewelry out of suspicion, bank authorities discovered it was a fake.

Bank employees attempted to stop the two men, but they fled. The bank reportedly has CCTV footage of the incident. Following this, the bank investigated other gold loan accounts.The investigation revealed that a member of Deepanshu Bansal’s family had previously taken a gold loan from the same branch. Subsequently, an investigation into the relevant accounts began. Investigations by bank officials and another independent appraiser revealed that the gold pledged in several accounts was fake.

The bank has alleged that Rubik Fintech executives Harsh and Anurag Singh sourced a large number of suspicious accounts. It also casts doubt on the role of Gold appraiser, Deepak Dhalla, who certified the jewellery as genuine.

The cases have been registered against Dipanshu Bansal, Mayur Bansal, Shahzad Khan, Siddharth Pandey, Alibin Hussain, Vikas, Kavita, Waseem Abbas, Ashwani, Mukul Kumar, Sahil Singh, Ankur Rajput, Dharamveer Ram, Mausim Khan, Kaifi Nauman, Harsh, Deepak Dhalla and Anurag Singh.

The bank’s complaint states that loans totaling ₹1.46 crore were disbursed to 20 accounts.

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Bank of India Jaipur Robbery: ₹42 Lakh Looted at Gunpoint Outside Branch

A robbery took place outside a Bank of India branch near Akshay Patra Chauraha in Jaipur, where two armed miscreants allegedly looted ₹42 lakh in cash from bank employees before fleeing on a motorcycle.

According to the newspaper report, the incident occurred on Monday morning, September 14, 2026, shortly after the bank reopened following a three-day holiday.

As per the report, two men arrived outside the Bank of India branch on a motorcycle. They allegedly pointed pistols at bank employees Cashier Meenakshi and employee Jyoti, who were carrying cash.

The miscreants reportedly snatched the bag containing the cash and escaped within around two minutes. The report states that the robbers had their faces covered and attempted to prevent anyone from stopping them.

The report states that the bank employees had withdrawn cash from a machine and were preparing to take it inside the branch. Around ₹42 lakh was reportedly taken during the incident.

The machine reportedly had a capacity to hold around ₹50 lakh in cash.

Police are examining CCTV footage from the bank and surrounding areas. According to the report, the suspects were seen near the bank at around 10:40 AM and allegedly carried out the robbery shortly afterward.

The footage reportedly shows the suspects fleeing on a motorcycle after the robbery. Police control room officials were informed at around 11:07 AM.

A significant development mentioned in the report is that one suspect, identified as Shankar, had allegedly been conducting reconnaissance around the bank for nearly three months.

Police are reportedly investigating whether he had previously worked as a daily-wage worker at the bank and was familiar with the movement of cash and the employees involved.

The investigation is underway, and police are examining CCTV footage from the bank and nearby locations to identify and trace the accused.

₹42 lakh was allegedly looted from Bank of India employees outside a Jaipur branch. Two armed suspects reportedly fled on a motorcycle as police investigate CCTV footage and a possible three-month reconnaissance operation.

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Bank of India(BOI) Branch Manager Accused of Demanding ₹2 Lakh for Subsidy, Customer Alleges Threats

A complaint has reportedly been filed against the Branch Manager of Bank of India’s Khujner Branch, Prashant Bikoniya, and his brother, alleging that a customer was asked to pay ₹2 lakh for the release of a subsidy amount.

According to the complaint filed by Keval Singh, a resident of Limboda village, the complainant alleged that ₹2 lakh was demanded from him in connection with the release of his subsidy. He further claimed that he was allegedly threatened that the subsidy would be allowed to lapse if the demanded amount was not paid.

The complaint also alleges that on the night of 25 August, the Branch Manager and some other persons allegedly reached the complainant’s residence and took him along with them. He has further alleged that his mobile phone was taken and checked and that he was taken in a car towards Chatukheda before being released later.

Following the incident, the complainant reportedly fell unwell and was taken to the Government Hospital, Khujner, where his blood pressure was recorded as 185/133 mmHg, according to the documents referred to in the complaint.

The complainant has sought an impartial investigation into the alleged incident, including the allegations of threats and being taken away, and has requested that his eligible subsidy amount be released as per applicable rules.

The allegations made in the complaint have not been independently verified at this stage. The response of Bank of India management and the police investigation will be important in establishing the facts of the matter.

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Newly Joined Clerk in PSU Bank Salary in 2026: Salary Slip, Basic Pay, Allowances & Take-Home Salary

A newly joined Public Sector Bank (PSU Bank) Clerk can expect a salary comprising Basic Pay, Dearness Allowance (DA), House Rent Allowance (HRA), Transport Allowance and other applicable allowances.

The salary slip shown above provides an example of a June 2026 salary structure for a Customer Service Associate (Clerk) in a Public Sector Bank. The actual salary may vary depending on the bank, posting location, stage of pay, allowances and individual deductions.

PSU Bank Clerk Salary Slip – June 2026

According to the salary slip, the employee's Gross Salary is ₹48,990, while the Net Salary credited is ₹45,096.41.

The Basic Pay of ₹26,730 forms the core component of the salary, while DA, HRA, transport and special allowances add to the monthly gross earnings.

The total employee deductions reflected in the slip are ₹3,893.59.

The slip also displays a DCPS Bank Contribution of ₹5,050.63 separately. This is shown as a contribution and should not be added to the employee's total deductions when calculating the net salary.

Net Salary

After applicable employee deductions, the salary slip shows:

Gross Salary: ₹48,990.00

Total Employee Deductions: ₹3,893.59

Net Salary:₹45,096.41

Thus, the employee receives approximately ₹45,096 as take-home salary for the month shown in the example.

Important Note for Newly Joined PSU Bank Clerks

The salary shown in this example should not be treated as a fixed salary applicable to every newly joined bank clerk. Actual salary can differ based on factors such as:

* Bank and applicable Bipartite Settlement

* Pay stage and increments

* Posting/location

* HRA and other location-based allowances

* Special allowances

* Professional tax and other statutory deductions

* Pension/NPS/DCPS-related contributions

* Other individual deductions

Therefore, candidates joining a PSU bank should check their appointment terms and the latest applicable salary structure for an accurate estimate.

The example salary slip demonstrates that a PSU bank clerk's monthly salary can include several components beyond Basic Pay. In this June 2026 example, ₹48,990 gross salary translates into ₹45,096.41 net salary after employee-side deductions.

Disclaimer: This post is based on the salary slip shown in the accompanying image and is intended for informational purposes. Salary components and amounts may vary from employee to employee and from bank to bank.

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Government Puts PLI Payment to PSB Executives on Hold for FY 2025-26

The Government of India has decided to keep the payment of Performance Linked Incentive (PLI) to executives of Public Sector Banks (PSBs) in abeyance for the financial year 2025-26, until further orders.

The decision has been communicated by the Department of Financial Services (DFS), Ministry of Finance, through a letter dated September 7, 2026, addressed to the Chairman of State Bank of India and the Managing Directors & CEOs of all Nationalised Banks.

According to the DFS communication, the decision relates to the Performance Linked Incentive (PLI) Scheme for Whole Time Directors and Senior Executives of Public Sector Banks, which was issued by the Department vide its letter dated November 19, 2024.

The Government stated that representations had been received from bank employees regarding the PLI scheme. After considering the matter, it has been decided that:

“The payment of PLI to the Executive of PSBs (Scale IV to VIII) for FY 2025-26 shall remain in abeyance until further orders.”

Importantly, the Government has also stated that the issue will be taken up during the ongoing discussions for the 13th Bipartite Settlement / 10th Joint Note.

This indicates that the matter concerning PLI for executives in Scale IV to VIII could become part of the broader discussions between the banking industry and employee organisations.

A copy of the DFS letter has also been sent to the Chief Executive, Indian Banks’ Association (IBA), Mumbai, indicating that the banking industry body has been formally informed about the decision.

The development is significant as bank employees and their organisations have raised concerns regarding the existing PLI structure and its distribution among different categories of bank employees.

With the payment for FY 2025-26 now kept in abeyance, the issue is expected to receive further attention during the ongoing 13th Bipartite Settlement/10th Joint Note discussions.

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Bank Unions Reject IBA’s Appeal: 11th September Strike to Go Ahead as Planned

The United Forum of Bank Unions (UFBU) has decided to proceed with and intensify preparations for the proposed nationwide bank strike on 11th September 2026, stating that there was no positive outcome from the meeting held with the Indian Banks’ Association (IBA).

UFBU said that the meeting was held following the strike notice served on the IBA over various pending demands of bank employees and officers.

No Positive Outcome in Meeting with IBA

During the meeting, IBA Chief Executive A. K. Goel reportedly appealed to UFBU to defer the strike, stating that a strike in the banking sector could disrupt economic activities and banking services. The IBA also indicated that the issues raised by the unions could be addressed through bilateral discussions.

However, UFBU maintained that the issues raised in the strike notice are important and cannot be brushed aside any further.

A major issue highlighted by the unions is the long-pending demand for 5-day banking.

UFBU stated that, based on an assurance from a senior Department of Financial Services (DFS) official that the issue was receiving priority attention at the Government level, the unions had deferred their earlier strike calls scheduled for 24th and 25th March 2025.

According to the unions, however, there has been no further development on the issue since then.

The unions also raised concerns regarding the Performance Linked Incentive (PLI) scheme. They stated that the issue had been discussed with IBA in September 2025 based on the advice of the Central Labour Commissioner (CLC), and suggestions for modification of the scheme were submitted to DFS.

UFBU alleged that there has been no positive response to its suggestions, while the Government/DFS has directed banks to implement the existing PLI scheme for Scale IV officers and above, despite the matter being pending before the CLC.

Apart from 5-day banking and PLI, UFBU pointed out that several residual and pending issues remain unresolved.

In view of the lack of a definite outcome, UFBU stated that it was not possible to defer the strike call.

The United Forum of Bank Unions has accordingly called upon all its constituent unions and members to go ahead with the programmes and intensify efforts to make the 11th September 2026 strike successful.

The development is significant for the banking sector, particularly as 5-day banking, PLI and other pending employee-related issues continue to remain major demands of bank unions.

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