The government has temporarily paused implementation of the new Performance Linked Incentive (PLI) scheme for the financial year 2025-26 amid a strike threat from bank employees. The matter will now be discussed through the ongoing bipartite settlement and joint note discussions, the Union Finance Ministry said.
The decision followed a meeting on Monday between Union Finance Minister Nirmala Sitharaman and a delegation of bank employees representing different public sector banks (PSBs), led by the Bharatiya Mazdoor Sangh.
Various issues raised
The delegation raised several issues concerning the banking sector, including a review of ex-gratia payments, medical facilities for retired employees and the existing structure of the PLI scheme applicable to PSB employees, along with other employee-related concerns.
The government said it is committed to resolving the issues through dialogue, consultation and mutual understanding, keeping the broader interests of bank employees, customers and the banking sector in mind.
The United Forum of Bank Unions (UFBU) has announced a series of strikes beginning with a one-day strike on September 11, covering four unresolved demands, including a five-day banking week and the government’s revised PLI scheme.
The UFBU had earlier stated that the September 11 strike would be followed by a three-day strike from September 28 to September 30.
Indefinite strike threat
The unions have warned that if their grievances are not addressed, they may proceed with an indefinite strike from October 26. The UFBU had also called for a strike in March 2025, but it was deferred after the Chief Labour Commissioner asked the Indian Banks’ Association and unions to negotiate modifications to the PLI scheme.
Instead of negotiating on the proposal, the UFBU said the September 11 strike would go ahead.
The government had directed banks in March 2026 to implement the formula. The matter was subsequently taken to the Delhi High Court and remains pending, according to the report.
The latest escalation came after the Department of Financial Services, under the Union Ministry of Finance, again directed banks on August 21 to proceed with implementation.
The unions have alleged that this violates the status quo requirement under the Industrial Disputes Act, while the dispute remains before the Chief Labour Commissioner.