India's bank unions are planning a strike on September 11
What's the story
The United Forum of Bank Unions (UFBU), which claims to represent over 90% of the banking workforce in India, has announced a nationwide strike on September 11. The decision comes over unresolved issues concerning the five-day banking week and the government's revised Performance Linked Incentive (PLI) scheme. The forum comprises seven unions - AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBOC and INBEF - representing workers across public sector, private, foreign, regional, rural and cooperative banks.
Strike details
Indefinite strike from October 26 if demands aren't met
The UFBU has called for a one-day strike on September 11, followed by a three-day strike from September 28 to 30.
If their demands aren't met, the unions have threatened an indefinite strike starting October 26.
The unions are demanding four key things: implementation of a five-day banking week, withdrawal of the PLI scheme, modification of this scheme through bilateral discussions, and resolution of pending issues.
Demand background
Demand for a 5-day banking week
The demand for a five-day banking week has been pending for several years.
The unions say banks had agreed in principle to shift toward a five-day week in 2015, when second and fourth Saturdays were declared holidays.
This was revisited in 2020 and formalized through a wage settlement signed on March 8, 2024.
Scheme disputes
Revised Performance Linked Incentive scheme
The PLI scheme was introduced through a 2020 settlement and applied uniformly to bank employees, from housekeeping staff to General Managers.
However, in November 2024, the Department of Financial Services ordered banks to adopt a revised incentive formula based on individual performance for Scale IV to VII officers.
The unions say this covers about 40,000 officers or roughly 5% of the industry's eight lakh strong workforce.
Scheme impact
Strike deferred in March 2025 after negotiations were initiated
The unions argue that under the revised formula, senior officers could get incentives of up to 365 days' wages, while the remaining 95% of employees would get a maximum of 15 days.
UFBU had called a strike over this issue in March 2025, but it was deferred after negotiations were initiated.
However, despite proposed changes being submitted by the unions, the government directed banks to implement the formula in March 2026.
Legal action
Matter is currently in Delhi High Court
The matter was taken to the Delhi High Court and is pending.
The latest escalation came after the Department of Financial Services again directed banks on August 21, 2026, to implement the revised PLI scheme.
The unions have alleged that this violates the status quo requirement under the Industrial Disputes Act while the dispute remains before Chief Labour Commissioner.