Appeal to Employees of Public Sector Banks and Regional Rural Banks for Ensuring Uninterrupted Banking Services

• 22 Sep 2026
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The United Forum of Bank Unions along with several other unions and associations in Public Sector Banks (supported by Regional Rural Banks) has called for a series of strikes in support of two main demands. The first demand is regarding the implementation of a five-day banking week. The second demand is for the withdrawal of the Performance Linked Incentive (PLI) scheme. After careful consideration of the concerns raised, the Government decided to suspend PLI scheme following detailed discussions. This proactive step by government addressed one of two primary demands of unions.

The government engaged in several rounds of conciliation to resolve the remaining issues through dialogue and adhered to established practice of addressing differences in a bilateral manner. Despite government's achievement in resolving one of unions' major demands and its ongoing efforts for conciliation, a one-day strike took place on 11 September 2026. A further three-day strike is now scheduled from 28 September 28 to 30 September 2026 with an indefinite strike proposed starting on 26 October 2026 focused solely on demand for a five-day workweek for banks. 

Initiatives Taken by Government for Banking Sector

For employees in the banking sector, the government has taken major initiatives from time to time. This includes the following initiatives:

• An increase in salaries and allowances along with the establishment of new pay scales for all job categories, has been implemented in the banking sector. 

• In August 2024, the Staff Welfare Fund (SWF) allocated by Public Sector Banks (PSBs) for welfare-related activities such as health expenses, canteen subsidies, sports and cultural activities and educational financial assistance for both current and retired PSB employees, was enhanced by 56%. 

• The number of executive positions at the levels of Assistant General Manager, Deputy General Manager, General Manager and Chief General Manager has seen an increase. 

• Banking recruitment has been strengthened with the introduction of Aadhaar authentication and declaration of recruitment results has been streamlined to reduce attrition in banking sector.

• Promotion processes have been streamlined so as to ensure timely promotions. 

• Transfer policies have been improved to enable automated timely transfers through the development of online platforms that allow employees to indicate location preferences in case of transfers or promotions. 

• Special leave has been approved for women employees, including provisions for leave related to menstruation, infertility treatment, adoption of a second child and stillbirth events. 

• The Family Pension for bank retirees has been revised and a pension option has been granted to those who resign. 

• A monthly ex-gratia amount for pensioners and family pensioners has been introduced for the current bipartite period, and the ex-gratia for pre-1986 retirees and their families has been increased. 

• A revised medical insurance policy with a base policy concept has been introduced for retirees. 

• The Conveyance Allowance for persons with disabilities (PwBD) employees has been increased. 

• The time taken to complete wage settlements has been reduced as well.

Government Initiates Negotiations for Bipartite Settlement

To ensure there is a prompt implementation of wage settlements as well as timely revisions of bankers' salaries and allowances, the Government has initiated negotiations for the upcoming Bipartite Settlement for the first time. The goal here is to complete these negotiations well ahead of November 2027 deadline. These initiatives demonstrate the government's ongoing commitment when it comes to addressing the genuine concerns and welfare of bank employees. At the same time, they showcase the government’s commitment to strengthening the institutional framework so as to ensure the banking sector operates efficiently and effectively. 

Moreover, these measures indicate that the government has effectively addressed the concerns of a substantial majority of bank employees in recent years. Given that most concerns raised by unions have been adequately addressed and that remaining demands are still under consideration as well as the fact that the government is actively introducing welfare measures for banking workforce, bank employees are encouraged to avoid participating in strikes. Instead, they should work towards resolving issues through dialogue so as to ensure that banking services remain uninterrupted for the customers. 

Source: PIB Press Release