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UFBU and IBA Discuss Key Banking Issues: PLI Scheme and 5-Day Banking at the Forefront
United Forum of Bank Unions (UFBU) held talks with Indian Banking Association (IBA) on 26th September 2025, mainly over the PLI scheme, urging that no employee lose benefits under the agreed settlement. Other demands included 5-day banking, pension options, GST exemption on medical insurance, uniform DA, and higher gratuity limits. Further discussions are set for 15th October 2025.
Author: S Nila
Published: 10 hours ago
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The United Forum of Bank Unions (UFBU), an umbrella body of nine major bank employee and officer associations, held a crucial round of discussions with the Indian Banks' Association (IBA) on September 26, 2025, to address various outstanding issues. The discussions serve as a continuation of conciliation proceedings initiated following a strike notice served by the UFBU on March 5, 2024.
Image - The statement from UFBU
The meeting's primary focus was the contentious Performance Linked Incentive (PLI) scheme as advised by the Government, particularly its application to Scale IV officers and above.
Key Focus: Resolving the PLI Disparity
The UFBU has long argued that the Government's PLI scheme for senior officers is "in total variance" with the bilaterally agreed PLI scheme covering other employees and officers.
In the latest discussion, the UFBU submitted a proposal for a middle ground. While acknowledging the need for a structure for top management, the unions proposed that the Government's PLI formula could be implemented for the Top Management with certain modifications to the quantum of PLI. Crucially, the UFBU insisted that this should be done while ensuring that "no one should be denied of PLI as is payable under the bilateral PLI scheme" applicable to other employees and officers.
This bilateral discussion was held following the advice of the Chief Labour Commissioner (Central) in the previous conciliation meeting on August 11, 2025, for the two parties to submit a unified view for Government consideration.
Agenda for the Next Conciliation Meeting
Several other critical demands were raised by the UFBU, with discussions set to continue in the upcoming conciliation meeting with the CLC on October 15, 2025.
The issues deferred for further discussion include:
- Early introduction of 5-day banking.
- Finalising the details of the Leave Bank scheme.
- Implementation of Ex-gratia in all private sector banks.
- Recruitment of Substaff and Armed Guards.
- An advisory to banks to prevent Zonal/Regional Managers from using abusive language towards Branch Managers and other staff during meetings.
- Increasing the ceiling on Gratuity under the Act.
- Allowing remaining employees, officers, and retirees the option to join the existing pension scheme.
- Seeking exemption of income tax on the additional 4% of NPS contribution and on additional medical insurance premium.
- Fixing uniform Dearness Allowance (DA) rates for all pensioners at 8088 points.
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Update on Retiree Medical Insurance
During the meeting, the IBA provided a positive update regarding the welfare of retirees. The Association informed the unions that it has formally taken up the issue of exemption of income tax on the premium paid for the Group Medical Insurance policy for retirees with key government bodies, including the Department of Financial Services (DFS), the Central Board of Direct Taxes (CBDT), and the GST Council.
Additionally, both parties clarified a detail regarding the Group Medical Insurance scheme for retirees: the new feature that allows for an Add-on facility to include a dependent physically/mentally challenged family member will be applicable only to the children of the retirees.
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