Why Are Bank Unions Going on Strike on September 11 Despite the Government’s PLI Climbdown?

Bank employees across India are set to go ahead with a nationwide strike on Friday, September 11, disrupting operations at public sector banks even after the Union Finance Ministry moved to put a contentious new Performance-Linked Incentive (PLI) scheme in abeyance. The United Forum of Bank Unions (UFBU), which represents major employee and officer unions, has organised the strike as the first step in a wider agitation, with a three-day stoppage planned from September 28 to 30 and a warning of an indefinite strike from October 26 if the deadlock continues. Union leaders say the government's concession on the PLI formula does not touch their central demand, a long-delayed five-day banking week, which is why the strike is going ahead regardless.

What Is The Five-Day Week Demand About?

Under a March 2024 agreement between the unions and the Indian Banks' Association (IBA), all Saturdays were meant to become holidays for bank staff, replacing the current system where only the second and fourth Saturdays are off. Employees had agreed to work 40 minutes extra each day from Monday to Friday in exchange. SBI Bank Strike: Will Services Be Hit on September 11? Check Strike Dates, Impact.

The IBA sent the proposal to the Department of Financial Services (DFS) under the Finance Ministry for approval, but the clearance has been pending for over two years. Unions say staff held up their side of the deal without getting the promised change. Why Are Bank Employees Going on Strike on September 11?

Why Did The PLI Scheme Trigger Anger In The First Place?

A November 2024 DFS directive introduced a new PLI formula for senior officers at Scale IV and above. Under the older 2020 framework, incentives applied uniformly to all staff up to Scale VII, capped between 1 and 15 days of salary based on the bank's overall profit.

The new directive tied incentives for senior officers to individual performance metrics instead, allowing some to earn up to 365 days of basic pay. Unions objected on two counts: around 40,000 officers in Scales IV to VII, about 5 percent of the roughly 8-lakh banking workforce, stood to gain far more than everyone else, and the change was made without the usual bilateral negotiations with the IBA.

Why Isn't The Government's Move Enough To Call Off The Strike?

Ahead of the strike notice, the Finance Ministry announced it would hold the 2025-26 PLI scheme in abeyance and send the matter back for bipartite discussion. But the UFBU has said 'abeyance' is not the same as withdrawal or a settled agreement.

Unions also point out that the government gave no timeline on the five-day week notification, pension revisions, or medical insurance updates for retired employees, which is why the broader agitation continues.

How Will The Strike Affect Banking Services?

The September 11 strike is expected to cause a four-day disruption in several regions since it is followed by the second Saturday (September 12) and Sunday (September 13), both regular bank holidays. Branches in various states will also stay shut on Monday, September 14, for Ganesh Chaturthi.

Digital services including UPI and net banking are expected to work as usual, but physical branch work such as cash deposits, withdrawals, clearing house operations, and government transactions at public sector banks will likely see delays.

(The above story first appeared on LatestLY on Sep 10, 2026 03:30 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).