United Forum of Bank Unions Announces Phased Nationwide Strikes Starting September 11

The United Forum of Bank Unions (UFBU) has announced a series of nationwide strikes starting with a one-day action on September 11, followed by a three-day strike from September 28 to September 30. If grievances remain unaddressed, unions have stated they will proceed on an indefinite strike starting October 26.

The announcement follows unresolved issues concerning four key demands, principally the implementation of a five-day banking week and the withdrawal of the government's revised Performance Linked Incentive (PLI) scheme. The UFBU comprises seven unions—AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBOC, and INBEF—which collectively claim to represent 90 percent of the workforce across public sector, private, foreign, regional, rural, and cooperative banks.

This marks the second strike called by the UFBU in about a year and a half. A previous strike planned for March 2025 was deferred after the Chief Labour Commissioner asked the Indian Banks' Association and unions to negotiate modifications to the PLI scheme. According to the unions, rather than negotiating, the government directed banks in March 2026 to implement the formula. The matter was subsequently taken to the Delhi High Court, where it remains pending.

Further escalation occurred when the Department of Financial Services under the Union Ministry of Finance directed banks on August 21, 2026, to proceed with implementation. Unions have alleged this violates the status quo requirement under the Industrial Disputes Act while the dispute remains before the Chief Labour Commissioner.

Regarding the five-day work week, unions stated that banks agreed in principle to the transition in 2015 when the second and fourth Saturdays were declared holidays. The issue was later formalized through a wage settlement signed on March 8, 2024. Under that arrangement, bank employees agreed to work an additional 40 minutes daily from Monday to Friday in exchange for all Saturdays off, ensuring customer service hours remained unchanged. Unions noted they are still awaiting a response from the Finance Ministry to the two-year-old agreement, pointing out that five-day work weeks are already followed by institutions such as the Reserve Bank of India, LIC, GIC, NABARD, and other government and private organizations.

On the PLI scheme, unions noted it was originally introduced via a 2020 settlement applying uniformly to all employees, with incentives ranging from one to 15 days' wages based on bank performance. However, in November 2024, the Department of Financial Services directed the adoption of a revised incentive formula based on individual performance for Scale IV to VII officers. This covers approximately 40,000 officers, or about 5 percent of the industry's 8-lakh workforce.

Under the revised guidelines, senior officers could receive incentives of up to 365 days' wages, compared to a maximum of 15 days for the remaining 95 percent of employees. Unions argue that this creates significant disparity within the workforce and remains unacceptable.

"Labor disputes and strikes in the banking sector invariably cause operational disruptions that impact business continuity and commercial transactions across the broader economy. When fundamental workplace terms, such as incentive structures and operating hours, face prolonged disputes between employee unions and regulatory authorities, it creates uncertainty for businesses and financial institutions alike. Resolving these core issues through structured bilateral discussions and adherence to legal frameworks is essential to maintaining stability in the financial ecosystem." — Dr. Shishir Gupta, Founder & CEO, StartupLanes