Bank Unions Defer Strike After Reaching Understanding With IBA
High-level committee to examine five-day banking week; PLI scheme and residual issues to be taken up for resolution
The United Forum of Bank Unions (UFBU) has deferred its proposed agitation and strike action following an understanding reached with the Indian Banks’ Association (IBA) on key pending issues concerning bank employees.
According to a circular issued by the UFBU on September 27, 2026, a meeting between the IBA and UFBU was held at 9:30 pm, following which both sides agreed on a series of steps to address the issues raised by the unions.
The most significant development relates to the long-pending demand for declaring remaining Saturdays as holidays for bank employees, paving the way for further discussions on the proposed five-day banking week.
Under the understanding, a high-level committee comprising representatives of the IBA and UFBU will be formed immediately. The committee will examine all possible alternatives, hold discussions with stakeholders and work towards a solution acceptable to all stakeholders, with particular emphasis on the interests of customers.
PLI scheme to be discussed with government
The two sides have also agreed to begin discussions on the Performance Linked Incentive (PLI) scheme for Scale IV and above officers.
The UFBU said the discussions could begin with the appropriate authorities in the government to address observations raised by unions and associations regarding the scheme.
Residual issues to be taken up
The remaining issues identified in the minutes of the meeting held on August 3, 2024 will also be discussed between the IBA and UFBU with the objective of resolving them expeditiously.
Following these developments, the UFBU has agreed to defer its proposed programmes of agitation and strike actions.
The circular has been signed by representatives of all the constituent organisations of the UFBU, including C.H. Venkatachalam (AIBEA), Rupam Roy (AIBOC), L. Chandrasekhar (NCBE), Sanjay Khan (AIBOA), Debasish Basu Choudhary (BEFI), Prem Makker (INBOC) and O.P. Sharma (INBEF).
The latest understanding effectively shifts the immediate focus from industrial action to negotiations, particularly on the five-day banking week, the PLI framework and other unresolved issues.
