0
0
New Delhi: Bank employees across India are set to go on strike despite the government’s decision to keep the Performance Linked Incentive (PLI) scheme for public sector bank employees in abeyance. The key reason is that PLI is only one of several demands raised by bank unions, with the long-pending five-day banking week now emerging as the main issue.
The United Forum of Bank Unions (UFBU) has confirmed a nationwide strike on September 11, 2026, followed by further industrial action later in September and a possible indefinite strike from October 26 if the outstanding issues are not resolved.
Government Puts PLI Scheme on Hold
The Centre moved to address one of the major concerns on September 7, when the Finance Ministry announced that the implementation of the PLI scheme for FY 2025-26 would be kept in abeyance.
The decision followed a meeting between Finance Minister Nirmala Sitharaman and representatives of employees from public sector banks. The government said the PLI structure would be taken up during ongoing bipartite settlement and Joint Note discussions.
However, bank unions have argued that putting the PLI scheme on hold does not resolve their broader concerns.
Five-Day Banking Week Is Now the Main Issue
The biggest reason behind the planned bank strike is the delay in implementing a five-day banking week.
According to UFBU, the Indian Banks’ Association (IBA) had already agreed to the proposal under the 12th Bipartite Settlement and 9th Joint Note signed in March 2024.
Under the proposal, banks would operate from Monday to Friday, with working hours extended by around 40 minutes each day to compensate for the additional weekly holiday. The proposal was subsequently recommended to the government but has remained pending for more than two years.
Bank unions therefore say the PLI decision cannot be treated as a complete settlement because the five-day banking demand remains unresolved.
Why Are Employees Still Angry Over PLI?
Although the government has now kept the PLI scheme in abeyance, unions are seeking more than a temporary suspension.
The UFBU wants changes to the incentive framework to be discussed and negotiated bilaterally with the unions. The unions have objected to what they describe as a unilateral revision of the existing structure.
In other words, employees are not simply demanding that the scheme disappear. They want the structure, eligibility and implementation mechanism to be discussed through the established collective bargaining process.
The government has said the issue will be taken up during ongoing negotiations, but unions say they still need concrete assurances on their wider demands.
Pension, DA and Recruitment Issues Also Remain
The bank strike is also linked to several long-pending employee and pensioner demands.
Among the issues raised by bank unions are:
- Pension updation
- A uniform dearness allowance (DA) formula for pensioners
- Conversion from NPS to the Old Pension Scheme (OPS)
- Adequate recruitment of clerical and subordinate staff
- Revision of ex-gratia payments for certain retirees
- Higher gratuity limits
- Medical insurance-related demands for retirees
- Filling vacant employee and officer director positions
The All India Bank Employees’ Association (AIBEA) said these residual issues remain unresolved despite discussions with the government, the Department of Financial Services and the IBA.
Strike Dates Extend Beyond September 11
The September 11 action is only the first stage of the unions’ planned agitation.
UFBU has announced:
September 11, 2026: Nationwide one-day strike
September 28–30, 2026: Three-day nationwide strike
October 26, 2026: Indefinite strike if the issues remain unresolved
The escalating schedule is designed to increase pressure on the government and banking management to reach an agreement.
The State Bank of India has also warned customers that banking operations could be affected by the planned strikes, while advising customers to complete important transactions in advance and use digital banking services for routine needs.
Why the PLI Withdrawal Has Not Stopped the Strike
The situation can be summarized simply: the PLI dispute was only one part of the larger confrontation.
The government’s decision to keep the PLI scheme in abeyance represents movement on one demand, but bank unions are primarily pressing for a definite decision on the five-day banking week, along with pension, staffing and other residual issues.
UFBU has said that the government has described five-day banking as being “under consideration,” but unions want a clear decision or timeline rather than another open-ended wait.
That is why the September 11 bank strike is still going ahead despite the government’s latest move on PLI.
What Could Happen Next?
The immediate focus will be on negotiations between the government, the IBA and bank unions.
If a concrete agreement is reached on five-day banking and the remaining issues, the later phases of the strike could potentially be reconsidered. However, UFBU has so far maintained its September 11 strike call because it says there has been no definite assurance on the five-day workweek.
For customers, the planned strikes could mean disruptions to branch-based services, including cash transactions, cheque processing and other physical banking operations. Digital services such as internet banking and ATMs may continue, although customers could still experience some operational delays.
The key takeaway is that bank employees are not striking solely over the PLI scheme. Even after the government put PLI on hold, the unions say the more fundamental dispute over five-day banking and other unresolved employee demands remains.
