The United Forum of Bank Unions (UFBU) has announced a fresh round of strikes over long-pending demands involving working days and employee incentives. The forum has called a one-day bank strike on September 11, 2026. This will be followed by a three-day strike from September 28 to 30. If the issues are not resolved, bank employees could go on an indefinite strike from October 26, 2026.
UFBU claims to represent more than 90 per cent of the banking workforce. It includes seven unions — AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBOC and INBEF. The unions represent employees across public sector, private, foreign, regional rural and cooperative banks.
What Are Bank Unions Demanding?
The UFBU has listed four major demands. These include the implementation of a five-day banking week, withdrawal of the revised Performance Linked Incentive (PLI) scheme, changes to the incentive formula through bilateral talks and settlement of other pending issues.
The five-day banking week has been a long-standing demand. According to UFBU, banks agreed in principle to the proposal in 2015. At the time, the second and fourth Saturdays were declared holidays.
The issue was again discussed in 2020. It was later included in the wage settlement signed on March 8, 2024. Under the agreement, employees agreed to work an additional 40 minutes from Monday to Friday. In return, all Saturdays would become holidays.
The unions said the proposal was sent to the Finance Ministry more than two years ago. However, they claimed that government approval is still pending.
Why Do Bank Employees Want a 5-Day Week?
UFBU said a five-day week would not reduce customer service hours. Employees have already agreed to longer working hours from Monday to Friday, the unions said.
They also pointed out that institutions such as the Reserve Bank of India, LIC, GIC and NABARD already follow a five-day working system. Several government and private organisations also follow similar schedules.
Revised PLI Scheme Becomes Another Flashpoint
The revised Performance Linked Incentive scheme is another major reason behind the proposed strikes. According to UFBU, the PLI scheme was introduced through a 2020 settlement. It applied to bank employees across grades, from housekeeping staff to General Managers.
Under the earlier system, incentives ranged from one to a maximum of 15 days’ wages, depending on the bank’s performance. However, the Department of Financial Services issued directions in November 2024 for a revised formula. It linked incentives to individual performance for officers in Scale IV to VII.
UFBU said the change affects around 40,000 officers, or about 5 per cent of the banking industry’s estimated eight lakh employees.
Under the revised formula, senior officers could receive incentives of up to 365 days’ wages. This compares with the maximum 15 days available to the remaining 95 per cent, according to the unions.
UFBU Says Government Action Forced Fresh Agitation
UFBU had earlier called a strike over the PLI issue in March 2025. It was deferred after the Chief Labour Commissioner asked the Indian Banks’ Association and unions to negotiate possible changes.
The unions said they later submitted their proposals. However, the government directed banks in March 2026 to implement the revised formula.
The dispute was subsequently taken to the Delhi High Court and remains pending, according to UFBU. The latest escalation came after the Department of Financial Services again directed banks on August 21, 2026, to implement the formula.
UFBU has alleged that the move violates the status quo requirement under the Industrial Disputes Act while the dispute remains before the Chief Labour Commissioner.
Unions Call PLI Formula ‘Discriminatory’
The banking unions have opposed the revised system, calling it discriminatory. They argued that the new formula goes against the uniform incentive structure agreed through bilateral negotiations. UFBU also claimed that the incentive cost for the top 5 per cent of employees could exceed the total incentive paid to the remaining 95 per cent.
The unions have also objected to dividing officers into “performer” and “non-performer” categories. They said such classifications would not necessarily reflect actual performance and could weaken collective bargaining.
Union leaders, including C.H. Venkatachalam of AIBEA, Rupam Roy of AIBOC, L. Chandrasekhar of NCBE, Sanjay Khan of AIBOA, Debasish Basu Choudhary of BEFI, Prem Makker of INBOC and O.P. Sharma of INBEF, said the agitation had been “forced on the Unions due to the actions of the Government and managements.”
The proposed strikes could now put pressure on the government and bank managements to resolve the two major disputes before the October 26 indefinite strike deadline.
Sudeep Singh Rawat is a Copy Editor at NewsX Digital with over five years of experience in digital journalism. He covers national and international news, with a focus on politics, crime, technology, public affairs, and trending topics. Before joining NewsX Digital, he worked with Business Standard, The Sunday Guardian, and other digital media organisations. His reporting focuses on breaking news, enterprise stories, and explainers that inform readers through accurate, balanced, and context-driven journalism.
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