The United Forum of Bank Unions (UFBU) has deferred its proposed agitation programmes and strike action after reaching an understanding with the Indian Banks’ Association (IBA) during talks on September 27, 2026. The meeting took place at 9:30 PM and covered several issues raised by bank employees’ unions and associations.
Both sides agreed to form a high-level committee to examine the demand for declaring the remaining Saturdays as holidays for bank employees. They also agreed to discuss changes to the Performance Linked Incentive (PLI) scheme for Scale IV and above officers. Further talks will address other pending issues, while the proposed agitation and strike remain deferred.
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Key Facts
- Organisations: UFBU and Indian Banks’ Association
- Meeting date: September 27, 2026
- Meeting time: 9:30 PM
- Main development: Proposed agitation and strike deferred
- Key issue: Demand for holidays on all Saturdays
- Committee: High-level IBA-UFBU committee
- Other issue: Performance Linked Incentive scheme for Scale IV and above officers
- UFBU members: AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBEF and INBOC
UFBU Defers Strike and Agitation
The UFBU announced the decision through Circular No. 2026/31, issued on September 27.
According to the circular, representatives of the IBA and UFBU held detailed discussions on several demands raised by banking unions.
Following the discussions, both sides reached an understanding on some of the issues. Consequently, the UFBU decided to defer its planned agitation programmes and strike action.
However, the decision does not mean that all outstanding issues have been resolved. Instead, the unions and banking management will continue discussions on the pending matters.
Committee to Examine Saturday Holidays
One of the major developments concerns the long-standing demand for a five-day banking week.
The IBA and UFBU agreed to immediately establish a high-level committee with representatives from both sides. The committee will examine the issue of declaring the remaining Saturdays as holidays for bank employees.
The committee will also explore possible alternatives and consult relevant stakeholders. According to the UFBU circular, the discussions will consider the interests of bank customers while working towards an acceptable solution.
The demand for holidays on all Saturdays has remained a significant issue for bank employees’ organisations during negotiations with banking management.
Discussions on PLI Scheme
The meeting also addressed concerns surrounding the Performance Linked Incentive (PLI) Scheme applicable to Scale IV and above officers.
The UFBU and IBA agreed to begin discussions on possible modifications to the existing scheme.
The objective is to formulate proposals that can be submitted to the government while addressing observations and concerns raised by employee unions and associations.
Further discussions will determine what changes, if any, may be proposed.
Residual Issues to Be Discussed
Besides Saturday holidays and the PLI scheme, the two sides also agreed to discuss residual issues mentioned in the minutes dated March 8, 2024.
The UFBU and IBA agreed to pursue these matters with the objective of resolving them as quickly as possible.
Therefore, negotiations will continue even though the immediate strike and agitation programmes have been deferred.
Seven Unions Form UFBU
The United Forum of Bank Unions represents seven major banking employee and officer organisations.
These include the All India Bank Employees’ Association (AIBEA), All India Bank Officers’ Confederation (AIBOC), National Confederation of Bank Employees (NCBE), All India Bank Officers’ Association (AIBOA), Bank Employees Federation of India (BEFI), Indian National Bank Employees’ Federation (INBEF) and Indian National Bank Officers’ Congress (INBOC).
The latest circular was jointly endorsed by leaders representing the seven constituent organisations.
The signatories included CH Venkatachalam, Rupam Roy, L Chandrasekhar, Sanjay Khan, Debasish Basu Choudhary, Prem Makker and OP Sharma.
Further Negotiations Expected
The latest understanding provides a framework for continued discussions between banking management and employee organisations.
The UFBU leadership has indicated that a detailed circular will follow with additional information regarding the decisions and the next course of action.
Meanwhile, the planned agitation and strike remain deferred in view of the understanding reached during the IBA-UFBU meeting.
What Does This Mean for Bank Customers?
For customers, the immediate development means the proposed strike and agitation programmes have been put on hold.
However, discussions over Saturday holidays and other employee demands are still continuing. Any future change to banking schedules would depend on subsequent discussions and decisions by the relevant authorities.
Questions and Answers
Why has the UFBU deferred the bank strike?
The UFBU deferred its planned agitation and strike after discussions with the Indian Banks’ Association resulted in an understanding on several pending issues.
What will the new committee examine?
The high-level IBA-UFBU committee will examine the demand for declaring the remaining Saturdays as holidays and explore possible alternatives while considering stakeholder and customer interests.
What is the PLI issue?
The meeting discussed concerns about the Performance Linked Incentive Scheme for officers in Scale IV and above. Both sides agreed to discuss possible modifications.
Has the five-day banking week been approved?
No final approval for a five-day banking week is stated in the circular. The issue will instead be examined by the newly formed high-level committee.
Will further discussions take place?
Yes. The UFBU and IBA agreed to continue discussions on the PLI scheme and residual issues listed in the March 8, 2024 minutes.
India Banking Context
The development has implications for bank employees and customers across India, including the Northeast. The proposed strike has been deferred for now, while negotiations continue over working schedules, employee incentive schemes and other outstanding issues.
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