The United Forum of Bank Unions (UFBU) has called a four‑day nationwide strike in September over the demand for a five‑day banking week and the government’s new Performance Linked Incentive (PLI) scheme. An indefinite strike is threatened from October 26 if negotiations stall.

  • UFBU plans a total of four strike days in September.
  • Key demands: implementation of a five‑day banking week and revision of the PLI scheme.
  • Potential indefinite strike slated for October 26 if issues remain unresolved.

New Delhi (Aug 24) – The United Forum of Bank Unions (UFBU) issued a circular announcing a one‑day all‑India strike on September 11 and a three‑day strike from September 28‑30. The actions target two unresolved issues: the government’s five‑day banking proposal and the newly introduced Performance Linked Incentive (PLI) scheme for bank staff.

The circular states that unions feel the government has not adequately addressed their core demands. The first demand is the implementation of a five‑day banking schedule, an agreement already recorded in the 12th Bipartite Settlement signed on March 8 2024 between the Indian Banks Association (IBA) and the unions. However, the proposal remains pending for over two years.

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The second demand concerns the PLI scheme. Unions argue that the scheme, as directed by the Department of Financial Services, unfairly differentiates between senior officers (Scale IV and above) – who could receive up to 365 days of basic pay as incentive – and junior staff, capped at 15 days plus DA. This disparity, unions claim, violates the principle of uniform incentives based on overall bank performance.

Historical Background

Debates over banking work‑hours have persisted for years. The five‑day banking model was first proposed in 2019 but faced resistance from several banks. In 2022, the government introduced the PLI scheme to boost productivity, yet employees viewed it as a tool for rewarding individual performance rather than collective bank results.

Why This Matters

BozokMedia analysis shows that any prolonged disruption in banking services can ripple through the Indian economy, affecting everything from small business cash flows to large‑scale corporate transactions. A four‑day strike in September, coupled with the threat of an indefinite strike in October, puts pressure on the Ministry of Finance to negotiate swiftly.

"If the government does not step in for rapid mediation, the strike could cause a serious disruption in India’s financial system due to lost working days," financial analyst Anita Sharma said.
Did You Know?: India’s banking sector employs roughly 800,000 staff, but only about 5% are senior officers who stand to earn up to 20 times more under the proposed PLI structure.

Frequently Asked Questions

What is the main trigger for the strike? The unions are demanding a five‑day banking week and a fair, uniform PLI scheme.

How will customers be affected? Potential ATM closures, delays in online transactions, and interruptions to loan and deposit services.