Banking operations across India are set for significant disruptions this September as the United Forum of Bank Unions (UFBU) has announced a series of nationwide strikes. The agitation stems from unresolved demands, primarily concerning the implementation of a five-day banking week and a dispute over the government's revised Performance Linked Incentive (PLI) scheme.
Strike Schedule and Indefinite Action Threat
The UFBU, which represents over 90 percent of India's banking workforce, has outlined a clear strike calendar. A one-day nationwide strike is scheduled for September 11, followed by a three-day shutdown from September 28 to 30. Union leaders have issued a stern warning: if their demands remain unaddressed, an indefinite strike will commence from October 26, 2026.
The forum comprises seven major unions: AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBOC, and INBEF. These unions collectively represent employees across public sector, private, foreign, regional rural, and cooperative banks.
Demand for a Five-Day Banking Week
A long-standing demand from bank employees is the establishment of a five-day banking week. According to union representatives, the Indian Banks' Association (IBA) had agreed to this proposal as part of the 12th Bipartite Settlement/9th Joint Note, signed on March 8, 2024. Under the proposed system, bank employees would work an additional 40 minutes from Monday to Friday, making all Saturdays non-working days.
The UFBU states that this proposal was subsequently recommended to the government but has been pending for over two years. They highlight that other major financial institutions, including the Reserve Bank of India (RBI), Life Insurance Corporation (LIC), General Insurance Corporation (GIC), and NABARD, already operate on a five-day work week. Unions assure that customer service hours would remain unaffected due to the extended weekday working time.
Dispute Over Revised Performance Linked Incentive (PLI) Formula
Another critical issue fueling the strikes is the government's revised PLI formula for senior bank officers. Previously, performance-linked incentives ranged from one to 15 days' wages, contingent on the bank's overall performance. However, a new formula introduced for officers in Scale IV to VII could offer incentives of up to 365 days' wages.
Unions argue that this revised provision disproportionately benefits approximately 40,000 officers (about 5 percent of the 8-lakh strong banking workforce), while the remaining 95 percent would continue to have a maximum incentive capped at 15 days' wages. Despite ongoing negotiations, the government reportedly directed banks to proceed with implementing the revised PLI on August 21, 2026, even as the matter is still under consideration by the Chief Labour Commissioner and the Delhi High Court.
Other Pending Issues
Beyond these two primary concerns, the UFBU has also raised issues related to pension reforms and other pending service conditions for bank employees. Union leaders assert that the current agitation has been “forced on the Unions due to the actions of the Government and managements.”