3-Day Nationwide Bank Strike Deferred After Talks Between Bank Unions and IBA

The United Forum of Bank Unions (UFBU) has deferred the proposed three-day Bank Strike 2026 scheduled for September 28, 29 and 30, along with the indefinite strike planned from October 26, 2026. The decision followed developments in discussions with the Indian Banks’ Association (IBA) on five-day banking, the Performance Linked Incentive (PLI) scheme and other pending issues.

3-Day Nationwide Bank Strike Deferred

The UFBU had earlier given a call for a three-day nationwide strike followed by an indefinite strike from October 26, 2026, over four major demands. implementation of five-day banking, keeping the unilateral PLI scheme in abeyance, bilateral modification of the PLI framework and settlement of long-pending residual issues. The UFBU clarified that the deferment does not mean withdrawal of its demands. The issues will continue to be taken up through the proposed discussions and monitoring process.

Bank Strike 2026: Key Highlights

Bank Strike 2026 Deferred After IBA-UFBU Meeting

The Bank Strike 2026 was proposed over various issues concerning bank employees and officers. One of the major demands was related to making the remaining Saturdays holidays, which would move the banking sector towards a five-day working week.

The IBA and UFBU held discussions on September 27 to address the issues behind the proposed strike. Following the discussions, both sides agreed to continue negotiations instead of proceeding with the planned agitation. As a result, the UFBU has decided to defer the proposed strike and agitation programmes.

Five-Day Banking: High-Level Committee Proposed

The IBA had earlier recommended declaring all Saturdays as holidays for bank employees. The Settlement/Joint Note dated March 8, 2024 had also recorded that the change in working hours would take effect after the required government approval and clearances.

The latest development is the proposed formation of a high-level IBA-UFBU committee to examine the issue of remaining Saturdays as holidays and work towards a solution. Five-day banking has not yet been implemented.

PLI Scheme Issue Moves to Further Discussions

The PLI scheme is another key issue behind the proposed strike. According to the UFBU circular, the Government had decided to keep the PLI scheme in abeyance after considering concerns raised by the unions.

The IBA has now agreed that discussions can be held on the PLI scheme applicable to Scale IV and above, with possible modifications being proposed to the Government. UFBU has also raised the issue of appropriate PLI relativity for workmen employees and officers up to Scale III.

October 26 Bank Strike Also Deferred

Along with the September 28-30 strike, the proposed indefinite Bank Strike from October 26, 2026 has also been deferred. The UFBU has stated that it will monitor the progress of the discussions and review further organisational action depending on developments under the agreed process.

Other Banking Issues Under Discussion

The residual issues listed in the UFBU circular include:

• Pension updation and NPS-to-OPS demand
• Improvement in PLI
• Gratuity-related issues
• Medical insurance
• Recruitment
• Special Allowance for superannuation
• North-East incentives
• Compassionate appointments
• Uniform cash and business hours
• LTC/LFC monetisation
• Fitment anomalies
• Grid holidays
• Regulated working hours for officers
• Common pension, PLI, medical and welfare issues

Bank Employees Working on September 27: Compensation

The UFBU circular also mentioned compensation for employees who worked on September 27 after RBI permitted banks to remain open. Workmen employees are entitled to overtime wages at double the rate under the Bipartite Settlement, while officers who attended office are entitled to one day’s wage.

What Happens Next?

The UFBU will monitor the progress of discussions on five-day banking, PLI and residual issues. Further organisational action will be reviewed based on developments and progress under the proposed time-bound process.