File Photo: Bank employees staging a protest
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With banks threatening to go on strike, the government has temporarily put on hold the implementation of the new Performance Linked Incentive (PLI) scheme for the financial year 2025–26. Now the PLI scheme will be discussed during the ‘ongoing Bipartite Settlement/Joint Note discussions’, the Union Finance Ministry said in a statement. The issue will now be renegotiated mutually between the bank unions and management through official bilateral discussions.The decision was taken after Union Finance Minister Nirmala Sitharaman on Monday met a delegation of bank employees representing different public sector banks (PSBs) and led by the Bharatiya Mazdoor Sangh. The delegation raised various issues relating to the banking sector including review of ex-gratia, medical facility for retired employees, revisiting the present structure of the Performance Linked Incentive (PLI) scheme applicable for the employees of PSBs, and other concerns related to employees, the Ministry statement read.The government is committed to resolving issues through dialogue, consultation and mutual understanding in the larger interest of bank employees, customers and the banking sector.The United Forum of Bank Unions (UFBU) has announced a series of strikes, beginning with a one-day strike on September 11, over four unresolved key demands, such as a five-day banking week and the government’s revised PLI scheme. In a statement issued earlier, the UFBU said that the September 11 strike will be followed by a three-day strike from September 28 to September 30. If the grievances are not addressed, the unions stated that they would proceed on an indefinite strike from October 26.The UFBU had also called for a strike in March 2025, but it was deferred after the Chief Labour Commissioner asked the Indian Banks’ Association and unions to negotiate PLI scheme modifications.Rather than negotiating on the proposal, the unions said, the government directed banks in March 2026 to implement the formula. The matter was subsequently taken to the Delhi High Court and remains pending, according to the release.The latest escalation came after the Department of Financial Services, under the Union Ministry of Finance, again directed banks on August 21, 2026, to proceed with implementation. The unions have alleged that this violates the status quo requirement under the Industrial Disputes Act while the dispute remains before the Chief Labour Commissioner.Published on September 8, 2026
