UFBU Seeks Review of PLI Scheme for Bank Officers, Demands Fair Incentives for All Employees

The United Forum of Bank Unions (UFBU) has urged the Indian Banks’ Association (IBA) to review the Performance Linked Incentive (PLI) scheme for bank officers, highlighting concerns over fairness, uniformity and the exclusion of a section of senior officers from incentive payments.

In a letter dated 9 October 2026, addressed to the Chief Executive of the Indian Banks’ Association, Mumbai, UFBU requested an early meeting to discuss modifications to the revised PLI formula and resolve the matter through mutual consultation.

UFBU Raises Concerns Over the Revised PLI Scheme

According to the letter, the Government advised banks in November 2024 regarding the revised PLI scheme applicable to officers in Scale IV and above. Since then, UFBU has consistently raised objections with the IBA on the following grounds:

• Bilateral discussions: Any change or modification to the scheme should be discussed bilaterally with the unions and associations.

• Collective performance: The fundamental principle of PLI should remain linked to the collective performance of the bank.

• Uniformity: The incentive norms should be uniform rather than creating disparities among officers.

UFBU has welcomed the decision to initiate discussions with the IBA on proposing modifications to the scheme to address the concerns raised by the unions and associations.

20% of Senior Officers Reportedly Received No PLI

One of the major concerns highlighted in the letter is that the revised PLI scheme for officers in Scale IV to Scale VIII for the financial year 2024–25 has already been implemented, and higher incentive amounts have been disbursed to certain officers at a substantial cost.

However, UFBU points out that approximately 20% of officers in Scale IV to Scale VIII have not received any PLI.

The forum argues that these officers have also contributed to the overall performance of their respective banks. Therefore, excluding them from incentive payments raises questions about fairness and the principle of collective achievement.

UFBU Seeks Review of PLI for 2024–25

Pending discussions on modifications to the scheme for 2025–26 and subsequent years, UFBU has requested a review of the PLI already paid for 2024–25.

The demand covers:

• A review of PLI payments made to award staff and officers up to Scale III.

• A review of officers in Scale IV to Scale VIII who did not receive any PLI.

• Consideration of the contribution made by all employees towards the bank’s overall performance.

• Protection of the principles of equity, fairness and uniformity under the existing Bipartite Settlement/Joint Note framework.

Demand for an Early Meeting with IBA

UFBU has requested the IBA to arrange a meeting at the earliest so that the issues can be discussed and resolved amicably and mutually.

The letter has been signed by representatives of major bank unions, including AIBEA, AIBOC, NCBE, AIBOA and BEFI, along with other UFBU constituents.

The PLI issue has once again brought the focus on how performance incentives should be distributed in the banking sector. UFBU's position is that incentives should reflect the collective contribution of employees and follow transparent, fair and uniform principles.

The next step will be the discussions between UFBU and the IBA and whether the concerns regarding officers who received no PLI, along with the requested review of payments for 2024–25, will be addressed.

Stay tuned to Latest Bank Update for the latest developments on banking news, employee issues, PLI, wage-related matters and important updates from the banking sector.

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Compensation to Officers for working on 27th Sep,2026

 

The Indian Banks' Association (IBA) has been asked by the United Forum of Bank Unions (UFBU) to compensate officials who worked on Sunday, September 27, 2026, with one day's salary. IBA has consented to accept this demand and bring the matter up for approval at its upcoming Managing Committee meeting, according to UFBU.

Officers who reported for duty on September 27, a Sunday and holiday, are the subject of the demand. For the officers who worked on that day, the bank unions are requesting remuneration equal to one day's compensation.

The Indian government ordered banks to stay open on Sunday, September 27, 2026, for the convenience of customers, despite the proposal that the three-day strike take place from September 28 to September 30, 2026.

Bank employees across India had to report to work on Sunday. Normally, officers who work on a Sunday receive ₹2,000 as compensation, while bank clerks are paid an amount equal to twice their one-day salary.

But bank employees demanded that they should be paid their normal one-day salary for working on that day.

UFBU said it was hopeful that the issue would be taken up in the forthcoming Managing Committee meeting and receive the necessary approval. After approval, the member banks of the IBA can be advised to make the payment to the eligible officers.

The letter was jointly signed by representatives of the major bank unions under the UFBU, including AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBEF and INBOC.

The development is significant for bank employees who were required to work on September 27 despite it being a Sunday holiday. However, the letter indicates that the payment is still subject to approval by the IBA Managing Committee.

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UFBU STRIKE DEFERRED — UNDERSTANDINGS REACHED - A FORWARD MOVEMENT ON FIVE-DAY BANKING, PLI AND RESIDUAL ISSUES

 

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5-Day Banking Update: IBA–UFBU Meeting Held on 27 September 2026; Proposed Strike Action Deferred

The United Forum of Bank Unions (UFBU) and the Indian Banks’ Association (IBA) held a meeting on 27 September 2026 to discuss key issues concerning bank employees and officers, including the long-pending demand for 5-day banking, the Performance Linked Incentive (PLI) scheme and other outstanding demands.

According to UFBU Circular No. 2026/32 dated 27 September 2026, the meeting concluded with decisions to initiate further discussions on the pending issues. In view of these developments, UFBU has agreed to defer its proposed agitation programmes and strike actions.

Key Outcomes of the IBA–UFBU Meeting

1. High-Level Committee on 5-Day Banking

The implementation of 5-day banking was a key issue raised by the UFBU leadership. The unions emphasised that their demands should be addressed on a priority basis, particularly the implementation of a five-day working week in banks.

It was decided that a high-level committee comprising representatives of IBA and UFBU would be formed immediately to deliberate on declaring the remaining Saturdays as holidays.

The committee will examine possible alternatives, consult all stakeholders and work towards a mutually acceptable solution, keeping customers’ interests in view.

2. Discussions on the PLI Scheme

The meeting also discussed the Performance Linked Incentive (PLI) scheme applicable to Scale IV and above officers.

It was agreed that discussions could begin with IBA to propose modifications to the Government in the existing scheme, taking into account the observations and concerns raised by the unions and associations.

3. Resolution of Other Pending Issues

The meeting further agreed that the residual issues listed in the minutes dated 8 March 2024 would be discussed between the parties for an expedited resolution.

Both sides acknowledged the contribution of bank employees and officers to the growth of public sector banks and the wider banking industry.

4. Proposed Strike and Agitation Deferred

In view of the decisions taken during the meeting and the proposed discussions on outstanding demands, UFBU has agreed to defer the proposed agitation programmes and strike actions.

The development indicates that further dialogue between IBA and UFBU will take place to resolve the pending issues.

Who Attended the Meeting?

The IBA Negotiating Committee was represented by its Chairman, Shri Rajneesh Karnatak, MD & CEO of Bank of India, along with other senior representatives from Bank of India, Punjab National Bank, Indian Bank and State Bank of India.

UFBU was represented by leaders from its constituent organisations, including AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBOC and INBEF.

What Does This Mean for Bank Employees?

The formation of a high-level committee on 5-day banking is an important development in the ongoing discussions between IBA and UFBU. However, the final implementation of 5-day banking has not yet been announced.

Bank employees and officers will be looking forward to the committee’s discussions and a concrete decision on the remaining Saturdays as holidays.

The outcome of the upcoming discussions will be significant for employees, customers and the banking sector as a whole.

The IBA–UFBU meeting has opened the way for further negotiations on 5-day banking, PLI reforms and other pending demands. UFBU has deferred the proposed strike action, and employees will now await the outcome of the discussions and the next steps towards implementation of 5-day banking.

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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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UFBU Announced Strike against new PLI Scheme

A strike against the new PLI program has been announced by the United Forum of Bank Unions (UFBU). The whole banking sector is contesting the Punjab & Sind Bank's decision to credit PLI to senior executives at Scale IV and higher. Scale 1 to 3 will only receive PLI up to Rs. 50,000, whereas Scale IV and above will receive PLI up to Rs. 20 lakh. Because Scale 1 to 3 officers perform the majority of the labor in banks, while Scale 4 and higher officers are primarily assigned to controlling offices, bankers refer to this as discriminating.

All India Strike on September 11, 2026, All India Strike on September 28, 29, and 30, 2026, and Indefinite Strike starting on October 26, 2026 have all been proclaimed by UFBU.

According to UFBU, the government is viewing our significant demands and concerns negatively. PLI would be extremely expensive and disproportionately more expensive for Scale IV police and higher than for all other employees and officers. Everyone will receive more than 20 times the maximum PLI of 15 days. The police will be severely divided as a result.

Agitation Programme of UFBU

Date	Day	Programme
24 – 25 Aug.	Mon, Tue	Explaining the programme to the rank and file and mobilising them
24th Aug to 10th Sep		• Working strictly as per rules and procedures and withdrawal of all extra co-operation • Adherence to regular working hours, no work before or beyond scheduled hours. • Exit from all official WhatsApp groups
26th Aug.	Wed	Serving strike notice
27th Aug.	Thu	Mass Demonstrations in all centres and towns all over the country
28th Aug	Fri	Black Badge wearing
30th Aug	Sun	Twitter/X campaign
1st Sept.	Tue	Press meet at Delhi
3rd Sept.	Thu	Poster campaign
8th Sept.	Tue	Badge Wearing
11th Sept.	Fri	All India Strike
14 – 24 Sept		Dharna in all State Capitals
24th Sept.	Thu	Demonstrations in other centres (other than State capitals)
25th Sept.	Fri	Press release in all State capitals
26,27 Sept.	Sat, Sun	Meetings and preparatory campaign
28,29,30 Sept	M,T,W	All India Strike
7th Oct	Wed	Demonstration in all centres
10th Oct	Sat	Twitter/X campaign
22nd Oct	Thu	Demonstration in all centres
24, 25 Oct	Sat, Sun	Meetings and preparatory campaign
From Oct.26	Mon	INDEFINITE STRIKE

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UFBU issues Bank Strike Notice, Meeting to be held on March 9

 In response to the United Forum of Bank Unions' (UFBU) bank strike notification, the Indian government has summoned a significant meeting. The purpose of the meeting is to talk about the problem and identify potential solutions. The meeting is scheduled for March 9, 2026, at 11:30 AM, per a letter from the Ministry of Labor & Employment. The Conference Room in Shramev Jayate Bhawan, Sector-10, Dwarka, New Delhi, will host the meeting.

The notice has been sent to several key organizations including the Department of Financial Services (DFS), Indian Banks’ Association (IBA), all public and private sector banks, and the United Forum of Bank Unions (UFBU).

The government has asked all concerned organizations to attend the conciliation proceedings. They can either attend personally or send an authorized representative.

The representative should be well informed about the issue and preferably should not be below the rank of General Manager or Head of HR of the concerned bank.

Officials have also been asked to submit any written submissions in advance to the office of the Chief Labour Commissioner.

The meeting is being organized after the strike notice issued by UFBU, which represents several bank employee unions.

UFBU includes the following unions:

• AIBEA
• AIBOC
• NCBE
• AIBOA
• BEFI
• INBOC
• INBEF
• NOBW
• NOBO

The government is trying to resolve the issue through discussion before the strike takes place.

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UFBU Meeting 23 January 2026 Updates - 5 Days Banking

Today (23.01.26) again a meeting was held between UFBU, DFS, IBA, CLC and Bank Management for implementation of 5-Day Banking. The meeting was held at 3:30 PM in continuation to yesterday’s (22.01.26) meeting. Yesterday, the talks between UFBU and the Government of India failed, and the strike continued. Today also, the talks between UFBU and the government failed, and the strike will be conducted all across India on 27 January 2026.

Once again, the conciliation proceedings started to discuss the issue contained in the strike notice dated 08.01.2026 for the proposed strike to be held on 27.01.2026. At the outset, the Ld. representatives of DFS submitted that things are moving in the right direction and some decisions have been taken yesterday in favour of the Financial Sector. Accordingly, he requested the Ld. representatives of UFBU to reconsider their stand and defer the strike reflecting good gesture which may lead to positive outcomes.

At this stage, the Ld. representatives of IBA also requested in the same line of DFS and reiterated to consider the appeal so as to ensure that the dignitaries persuading their causes before the competent authorities may be strengthened to put forth their submission positively.

On the other hand, the Ld. representatives of UFBU reiterated that they are aware about the meaning and consequence of strike which is the ultimate legal right with the workmen. As such, they are not also of the intent to use such a stringent measure for pressing on the demand but as they have already deferred three such consecutive occasions of the proposed strike on some of the issues which contained the issue of 5 days banking also. As the Govt. is not at all responding on the issue of 5 days banking, they do not have any option in such compelling circumstances but resort to strike.

As the stalemate continued, the CLC(C) as Conciliation Officer also made an appeal to the Ld. union representatives to reconsider and avoid any direct action in the public interest so that industrial harmony be maintained. At the same time, the CLC(C) also advised other stakeholders to convey the message at appropriate level and try their level best to resolve the issue in public interest. It is also pertinent to mention at this stage that office of the CLC(C) is always open to facilitate the dialogue whenever it is required.

In the meantime, the provisions contained u/s 33(1) and 22 of the ID Act, 1947 shall remain in vogue. Next date in the matter is fixed on 09.03.2026 at 11.30 AM.

🗞️ What's happening right now about Strike

• Nationwide bank strike planned for  January 27, 2026 — Bank employee unions under the United Forum of Bank Unions (UFBU) have called a one-day nationwide strike to press for the implementation of a full five-day work week (i.e., both Saturdays off). 

• Banks likely to be closed for up to four days, from Jan 24–27, 2026 — because the strike overlaps with regular weekend holidays and Republic Day holidays. 

• Disruption in banking services expected across Gujarat and other states on Jan 27, with many branches closed and services slowed down. Around 800,000 bank employees are expected to participate nationwide; in Bihar alone, about 8,100 branches and 50,000 staff are involved. 

• Unions have also been urging political support (for example from West Bengal’s Chief Minister) to strengthen their strike call and demands. 

• The strike demand centers around the five-day working week, a change that was recommended by the banking industry earlier but hasn’t yet been formally implemented by the government. 

📌 Why it matters

• Customer impact: Physical bank branches may be shut on the strike day — but digital services (mobile banking, ATMs, online transfers) often remain available. Plan ahead for essential transactions. 

• Union demands: The main focus is the five-day work week, but bank workers often include other issues in agitation (staff shortages, working conditions, staffing norms etc.). 

If you’d like, I can pull specific state-wise closure lists or official notifications from your local banks for Jan 27 specifically.

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Latest Updates on Bank Strike,IBA UFBU Meeting Update 14 January

IBA and UFBU met today to discuss the launch of 5-Day Banking. On January 27, 2026, UFBU declared a strike and demanded that 5-Day Banking be implemented right now. Major bank officer and staff unions were called to a conference by the Indian Banks' Association (IBA) on January 14, 2026, to discuss their demands for the planned nationwide bank strike.

The IBA called UFBU to a conversation today in response to the strike notice that UFBU served on the IBA. As a result, this afternoon's talks were held in the IBA headquarters. Chief Executive Shri A K Goel, Deputy Chief Executive Shri Gopal Murali Bhagat, Mr. Brajeshwar Sharma, the departing Senior Advisor, HR&IR, and the newly appointed Shri Arvind Misra represented IBA. 

IBA notified UFBU that the government has previously been advised to declare the remaining two Saturdays as holidays, and the government's response is still pending while it is being considered. IBA added that a few other concerns, most notably the PLI issue, are still unresolved.

IBA therefore recommended that all of these problems be investigated further and asked the UFBU to postpone going on strike on January 27, 2026.In response to IBA's request, UFBU said that although it was decided to proclaim the second and fourth Saturdays as holidays in 2015, it was promised that the remaining two Saturdays would be taken into consideration later. However, since then, nothing has occurred. 

In February 2023, IBA agreed to proclaim the remaining Saturdays as holidays, subject to government approval, while UFBU agreed to extend working hours by 40 minutes every day, Monday through Friday. The government has already been requested to consider this plan, and it has been pending for the last two years.

UFBU emphasised that in the present scenario of banking, declaring the remaining two Saturdays as holidays is most essential. In view of the inordinate delay in implementing this understanding reached between IBA and UFBU, UFBU regretted its inability to accept IBA’s request to postpone the strike.

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Meeting held between UFBU, IBA, Labour Commissioner; Read decision on 5 Day Banking and other issues

Today, August 11, 2025, the Indian Banks’ Association (IBA), representatives of major bank unions, and representatives from the Ministry of Labour & Employment held a conciliation meeting to discuss important issues that affect bank employees, such as hiring, PLI, branch security, and the long-standing demand for five-day banking. The Deputy Chief Labour Commissioner presided over the meeting, which started with a review of the minutes from the June 17, 2025, meeting.

The IBA informed that a meeting on recruitment and PLI was held in Delhi on August 10, 2025, but no final decision was reached. However, both sides said talks were progressing positively and expressed hope of reaching an amicable solution soon.

Regarding employee safety, the Department of Financial Services (DFS) and IBA said they had previously written to state governments, requesting that they take decisive action to stop attacks or threats against bank employees in the future. Although the unions accepted these actions, they maintained that hiring armed branch guards was the only practical way to guarantee bank employees' safety. They cautioned that similar incidents are unlikely to cease in the absence of armed guards.

Union representatives expressed anger and frustration over the government’s inaction on the demand for five-day banking. They said that despite repeated discussions, 5 day banking has not been implemented and warned that they might be forced to announce strike.

It was agreed to hold at least one meeting each month to continue the bipartite discussions on PLI and recruitment. The Chief Labour Commissioner (Central) will get the minutes of these sessions for their records. The IBA would advise bank management to take the necessary actions in response to the unions' requests on the security issue. The CLC(C) has already written to the Secretary, DFS, requesting prompt action on five-day banking. They will send out another reminder to get updates. October 15, 2025, at 11:30 AM, has been set as the date of the next conciliation meeting.

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UFBU and IBA meeting postponed

The Conciliation meeting between UFBU and IBA that was scheduled to be held on 22 April has been postponed to 30 April.Bank Employees are protesting against non-fulfillment of demands such as 5 Day Banking and adequate recruitment of staff. 

Earlier, meeting was held on 18.03.2025 but any decision would not be arrived at. So next meeting was scheduled for 21.03.2025. In that meeting, the strike was deferred and UFBU said that a consensus had been arrived for most of the demands.

What UFBU said in last meeting on 21.03.2025?

Serious negotiations on our demands began the morning before today's adjourned conciliation meeting. There were representatives from the Department of Financial Services (DFS) and the Indian Banks' Association (IBA).

The Finance Minister (FM) and the DFS Secretary had a fruitful conversation regarding the desire for five-day banking, according to the Joint Secretary of DFS, who joined the meeting via video chat.

The IBA suggested more talks on important topics like hiring, Performance-Linked Incentive (PLI), and other difficulties. The implementation of five-day banking is one of the topics that the Chief Labour Commissioner (CLC) promised to personally monitor.

The adjourned meeting will take place again during the third week of April. It was agreed to delay the strike scheduled for the 24th and 25th by one or two months in light of these encouraging developments.

All units are hereby informed that the strike has been postponed, and a detailed circular will be issued soon.

Key Demands Raised by Bank Employees

• Adequate Recruitment: Address the shortage of staff across all cadres in banks.
• Five-Day Work Week: Implement a five-day work week for the banking industry.
• Withdrawal of DFS Directives: Demand the immediate withdrawal of the Department of Financial Services (DFS) directives on performance reviews and the Performance Linked Incentive (PLI) scheme, which threaten job security, create divisions among employees, and undermine the autonomy of public sector banks (PSBs).
• Safety of Bank Staff: Ensure protection for bank officers and staff against customer assaults and abuses.
• Fill Vacant Posts: Expedite the appointment of workmen and officer directors in PSBs.
• Resolution of Pending Issues: Resolve residual issues with the Indian Banks’ Association (IBA).
• Amend the Gratuity Act: Increase the gratuity ceiling to ₹25 lakhs, similar to government employees’ schemes, and provide income tax exemptions.

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AIBEA issued Clarification on 5 Day Banking, What happened in meeting?

UFBU just postponed the planned Bank Strike for March 24 and 25, 2025. The strike was called because a number of demands, including adequate bank recruitment and five-day banking, had not been met. The strike was postponed following a conciliation meeting with officials from the IBA, DFS, and Bank on March 21, 2025, at the Chief Labour Commissioner's (CLC) office. Since DFS provided no concrete indication regarding 5-Days Banking, bank employees across began to criticize UFBU's decision as soon as the strike was postponed. AIBEA has now clarified its position on 5-day banking.

The implementation of weekly 5-day banking was the subject of extensive discussion. We emphasized that the matter is still pending with the Government, to whom the IBA has advised, despite the fact that our Bipartite Settlement/Joint Note was signed in March 2024, a year ago. 

We clarified that disrespecting the sanctity of the bilateral settlement reached between the IBA and UFBU would be equivalent to keeping the matter open for so long. We also noted that the need for two days of weekly vacation has become essential in the current environment, when bank officers and managers labor beyond regular business hours and under a lot of stress.

IBA responded that they have recommended the subject to the Government and are seeking their approval in accordance with the Settlement/Joint Note. They promised to pursue the case with the government to obtain their proper consent when CLC pointed out that IBA should follow up with the government. 

 A DFS spokesman said that although the matter is being considered, no timeframe can be committed. As a result, this subject was in a virtual standstill. In order to learn the government's position and break the impasse, the Chief Labour Commissioner requested that a few high-ranking DFS officials attend the conciliation meeting.

A senior DFS Joint Secretary participated in the meeting via video conference and explained that the issue is receiving the government's serious attention, including from the Finance Minister, despite the fact that all of the DFS's top officials were preoccupied with the ongoing Parliament Session proceedings. 

We expressed our dissatisfaction with the excessive hold-up in the case and requested that the government move quickly. He asked the UFBU to reevaluate our call, stating that the government is already giving the issue significant consideration, even at the level of the finance minister.

Given the growing workload, stress, and long work hours that bank employees must endure, the call for a 5-day banking workweek is both sensible and essential. The bipartite settlement between unions and the IBA is undermined by the implementation delay, as the AIBEA correctly noted. Although AIBEA has properly called for prompt action, the government's evasive answers suggest that more pressure, increased public awareness, or more agitation may be needed to hasten approval. A five-day workweek is long overdue, and workers deserve acceptable working conditions. Instead of dragging out the process, the Government and IBA now have the responsibility to fulfill their promises.

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Why Bank Unions announced Strike and other trade unions support this Strike?

 

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UFBU announced two days strike in PSU Bank

The United Forum of Bank Unions has declared a two-day strike for March 24 and 25, 2025. The union has made proposals for public sector banks to implement five-day banking and hire enough employees. The union's demands and the strike timeline are listed below.

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