Bank Unions Announce Nationwide Strikes Over Five-Day Banking and PLI Scheme

The United Forum of Bank Unions (UFBU) has announced a series of nationwide strikes and an indefinite strike to press for changes in the banking sector, including the implementation of five-day work and a review of the Performance Linked Incentive (PLI) scheme.

The forum, which brings together key bank unions, AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBEF and INBOC, has called for the government to honour its commitment to introduce five-day banking.

These bank unions have announced an all-India strike on September 11, 2026. The UFBU says that this will be followed by another three-day nationwide strike on September 28, 29 and 30, 2026.

If the demands are not addressed, the UFBU in its statement said that the unions have announced that they would go on an indefinite strike from October 26, 2026.

Forum on 5-day working

The UFBU’s statement dated August 23, 2026, says, “On the issue of the introduction of five days banking, the IBA has agreed in the 12th BPS/9th joint note signed on March 8, 2024, to introduce 5 days of banking (by increasing 40 minutes of working hours daily from Monday to Friday) and the same has been duly recommended to the government. It is more than 2 years now and yet the matter is kept pending with the government.”

What is the PLI issue bank unions are raising?

The UFBU in its statement said that on the issue of the PLI also, it was clearly understood and agreed between the unions and the IBA that the PLI scheme would be based on the performance of the bank as a whole and would have uniform number of days for all employees and officers up to Scale VII.

“But in a unilateral manner, the DFS/Finance Ministry has directed banks to implement a different PLI scheme for Scale IV officers and above. Under this scheme, the officers from Scale IV and above would be paid PLI up to 365 days of basic pay based on their individual performance, while workmen employees and officers up to Scale III would be paid a maximum of 15 days of basic pay+DA.”

Bank unions say PLI scheme will cost hugely

The UFBU says that unions have pointed out to the DFS, CLC and IBA that the implementation of the revised scheme of the government would be a huge cost to the banks.

“Out of about 8 lakh of the total number of employees and officers in banks, the number of officers in Scale IV and above would be around 40,000, i.e., about 5% only,” says the UFBU.

The UFBU further says, “What they really prefer is fair treatment, work-life balance and stress-free work environment. What is being offered to them is a discriminative incentive which will keep them away from the rest of the colleagues.”