Bank Unions reaches understanding with IBA
NEW DELHI, SEPT 27: The United Forum of Bank Unions (UFBU) has decided to defer its proposed strike action and further agitation programmes after reaching an understanding with the Indian Banks’ Association (IBA) on a set of issues concerning bank employees and officers.
The decision was announced through UFBU Circular No. 2026/31 dated September 27, 2026, following a meeting between representatives of the IBA and UFBU held at 9:30 pm on Sunday.
According to the circular, the discussions resulted in an agreement to constitute a high-level committee comprising representatives of the IBA and UFBU to examine the issue of declaring the remaining Saturdays as holidays for bank employees.
The committee will explore all possible alternatives, consult stakeholders and work towards a solution acceptable to all concerned, including bank customers. The issue of Saturday holidays has been a longstanding demand of bank employees’ unions.
The two sides also agreed to initiate discussions on the Performance Linked Incentive (PLI) Scheme for Scale IV and above officers.
As per the understanding, discussions with the IBA can commence with a view to proposing modifications to the scheme before the Government. The proposed changes would seek to address observations and concerns raised by the unions and officers’ associations regarding the existing PLI framework.
The circular further states that the residual issues listed in the minutes dated March 8, 2024, will be taken up for discussion between the parties with the objective of resolving them expeditiously.
The development follows deliberations between the banking industry’s apex management body and the UFBU, which represents several major bank employees’ and officers’ organisations.
In view of the understandings reached on the issues, the UFBU has agreed to defer its proposed agitation programmes and strike actions.
The circular makes clear that the decision is a deferment rather than a withdrawal, with further discussions and the proposed high-level committee expected to take forward the outstanding issues.
The UFBU comprises AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBEF and INBOC. The circular was issued jointly by the respective representatives, including C.H. Venkatachalam (AIBEA), Rupam Roy (AIBOC), L. Chandrasekhar (NCBE), Sanjay Khan (AIBOA), Debasish Basu Choudhary (BEFI), Prém Makker (INBOC) and O.P. Sharma (INBEF).
The latest understanding is expected to provide a framework for continued negotiations on the outstanding demands while avoiding the immediate disruption that could have resulted from the proposed strike and agitation programmes.
“In view of the above, it was agreed by the UFBU that the proposed agitational programmes and strike actions will be deferred,” it concluded.
Some social media users sympathised with the bank employees who were asked to work on Sundays. Now that the bank strikes have been deferred, some users argue that they worked on a holiday for nothing.
What are the demands?
Bank unions under UFBU have several key demands. Their main demand is a five-day banking week. This means declaring all Saturdays and Sundays as holidays. Unions say this was already discussed but delayed.
They also want better pension benefits overall. NPS employees should get the option to switch back. The Old Pension Scheme should be made available to them again.
Pending wage revisions need to be resolved, too. Performance-linked incentive issues also require proper addressing soon.
Salary disbursement
The central government earlier implemented a system to prevent salary delays caused by the bank strikes. September salaries were authorised early on 25 September. Salaries, wages and pensions were included in this. Defence, Posts and Telecommunications employees were covered.
These payments count as advances against final amounts. Any adjustments will happen during October instead. Industrial employees also received advance wage payments similarly.