Bank unions defer three-day nationwide strike after late-night talks with IBA

Mangalore Today News Network

New Delhi, Sep 27, 2026: The United Forum of Bank Unions (UFBU) has deferred its planned three-day nationwide strike following an eleventh-hour meeting with the Indian Banks’ Association (IBA) on Sunday night.

The decision came after representatives of the UFBU and IBA met at 9.30 pm and reached an agreement on key demands, including a five-day working week and changes to the performance-linked incentive (PLI) scheme for senior bank officers.

Under the agreement, a joint IBA-UFBU committee will be formed to examine the proposal to declare all Saturdays as bank holidays. The committee will consider various options and consult stakeholders before working towards a solution.

The IBA has also agreed to begin discussions on modifications to the PLI scheme for officers in Scale IV and above, with a view to taking up their concerns with the government.

Other pending issues listed in the minutes of the March 8, 2024 meeting will also be discussed for early resolution, the UFBU said.

The strike was scheduled to begin on Monday and could have disrupted banking services across the country.

The five-day working week has been a longstanding demand of bank unions. In March 2024, the IBA agreed in principle to declare all Saturdays holidays, with employees working an additional 40 minutes each day from Monday to Friday. The proposal is awaiting government approval.

The unions have also opposed the existing PLI structure for senior officers, under which Scale IV and above officers can receive incentives of up to 365 days’ basic pay, depending on performance. Other employees and officers up to Scale III are eligible for a maximum of 15 days’ basic pay plus dearness allowance.

The UFBU has termed the disparity unfair and called for a system linked to the overall performance of the bank.