The United Forum of Bank Unions (UFBU) has announced an extended strike schedule targeting multiple dates over unresolved banking sector issues. According to latest reports, the forum representing over 90% of India's banking workforce has called for a nationwide strike on September 11, which coincides with a Friday and subsequent bank holidays, potentially disrupting banking services for four days in many parts of the country. The UFBU comprises seven unions - AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBOC and INBEF - representing workers across public sector, private, foreign, regional rural and cooperative banks. As reported by Bank of Baroda on September 2, 2026, the unions have also decided on three-day strikes from September 28-30, 2026, followed by a continuous strike from October 26, 2026. This marks the second strike in about a year-and-half, with the previous strike in March 2025 being deferred after the Chief Labour Commissioner asked the Indian Banks' Association and Unions to negotiate PLI scheme modifications. The unions stated that the government rather negotiated on the proposal, directed banks in March 2026 to implement the formula, and the matter was subsequently taken to the Delhi High Court and remains pending.
The primary demand centers on implementing the five-day banking week that has been pending for several years. As reported by The Hindu BusinessLine, banks agreed in principle to move towards a five-day week in 2015, when the second and fourth Saturdays were declared holidays. The issue was revisited in 2020 and formalized through the wage settlement signed on March 8, 2024 under the 12th Bipartite Settlement/9th Joint Note. Under this arrangement, bank employees agreed to work an additional 40 minutes every day from Monday to Friday in return for all Saturdays being declared holidays. The unions argue that the agreement was recommended to the Finance Ministry more than two years ago but is still awaiting government approval, noting that institutions like the Reserve Bank of India, LIC, GIC and NABARD already follow five-day working weeks. The Indian Banks' Association (IBA) had agreed for the proposal as part of the settlement, but the proposal has remained pending for more than two years, as confirmed by All India Bank Officers' Confederation (AIBOC) general secretary Rupam Roy.
The unions are particularly opposed to the revised Performance Linked Incentive (PLI) scheme introduced in November 2024. According to The Hindu BusinessLine, the original PLI scheme, introduced through a 2020 settlement, applied uniformly to bank employees from housekeeping staff to General Managers, offering incentives ranging from one to a maximum of 15 days' wages depending on bank performance. However, the Department of Financial Services directed banks to adopt a revised formula in November 2024 that covers approximately 40,000 officers (about 5% of the industry's 8-lakh-strong workforce). Under the revised system, officers in Scale IV and above could receive PLI of up to 365 days' basic pay based on individual performance, compared with a maximum of 15 days for the remaining 95% of employees. The unions have termed the revised scheme discriminatory, arguing it creates significant disparity within the workforce which is not acceptable, with the incentive cost for the top 5% potentially exceeding the total incentive paid to the remaining 95%.
The latest escalation comes after the Department of Financial Services under the Union Ministry of Finance again directed banks on August 21, 2026, to proceed with implementation. As reported by The Hindu BusinessLine, the unions have alleged that this directive violates the status quo requirement under the Industrial Disputes Act while the dispute remains before the Chief Labour Commissioner. The unions stated that they are still awaiting response from the Finance Ministry to their more than two-year-old agreement for the five-day week work schedule. The four key demands listed in the official statement include implementation of the five-day banking week, modification of the Performance Linked Incentive scheme through bilateral discussions, and resolution of pending residual issues. Crediting of performance-linked incentive under the DFS scheme has now actually commenced in the banks, alleging that this was in violation of the status quo obligation during conciliation proceedings. The unions have also objected to the government's PLI scheme for bank officers in Scale IV and above, saying it differs from the understanding reached with the IBA that performance-linked incentive would be linked to the overall performance of individual banks and would be uniform for employees and officers up to Scale VII.
Bank of Baroda has issued a formal warning about potential service disruptions, stating that functioning of the branches and offices may get affected if the strike materializes. The lender further assured that it is taking all necessary steps for smooth functioning of branches and offices on strike days. According to Bank of Baroda's exchange filing, the unions have served notice informing their decision to go on strike on September 11, 2026, along with strikes from September 28-30, 2026 and a continuous strike from October 26, 2026. The unions have threatened an indefinite strike from October 26, 2026, if their demands fall on deaf ears of the government and bank management, with the matter currently under conciliation before the Chief Labour Commissioner and also pending before the Delhi High Court.
