United Forum of Bank Unions (UFBU) has announced that its proposed agitational programmes and strike actions have been deferred following an understanding reached with the Indian Banks’ Association (IBA) on 27 September 2026. The development was communicated through UFBU Circular No. 2026/31 dated 27 September 2026, issued to all affiliated units.
Bank Strike Deferred: What Was Decided?
According to the circular, a meeting between the IBA and UFBU was held at around 9:30 PM on 27 September 2026. Following detailed discussions, the parties reached an understanding on several pending issues.
The major points mentioned in the circular are:
- Formation of a high-level IBA-UFBU committee to examine the issue of remaining Saturdays as holidays.
- Discussions on the PLI Scheme for Scale IV and above officers.
- Expedited discussion of residual issues contained in the minutes dated 8 March 2024.
- Deferral of the proposed agitation programmes and strike actions.
High-Level Committee on Remaining Saturdays as Holidays
One of the major issues discussed was the demand concerning the declaration of the remaining Saturdays as holidays for bank employees.
The UFBU circular states that a high-level committee comprising representatives of IBA and UFBU will be formed immediately.
The committee will:
- Examine all possible alternatives concerning the issue.
- Discuss the matter with all stakeholders.
- Work towards a solution acceptable to the stakeholders.
- Give importance to the interests of customers while considering the issue.
This means that the issue of additional Saturday holidays will now be taken up through a dedicated mechanism involving both IBA and UFBU.
What Does This Mean for Bank Employees?
The formation of the committee indicates that the issue will be subject to further discussions rather than being immediately implemented.
Therefore, employees should distinguish between:
Committee formation / discussion → confirmed in the UFBU circular
and
Final declaration of all remaining Saturdays as holidays → not announced in the circular.
Any final decision regarding the holiday arrangement would depend on the outcome of the discussions and the subsequent decision of the competent authorities.
PLI Scheme for Scale IV and Above Officers
Another important issue relates to the Performance Linked Incentive (PLI) Scheme for Scale IV and above officers.
According to the UFBU circular, discussions can start with IBA to propose modifications to the Government regarding the scheme.
The objective is to address the observations raised by the Unions/Associations concerning the PLI scheme.
Thus, the issue is moving towards further discussion between the UFBU and IBA, with the possibility of proposals being made to the Government.
Residual Issues of the 8 March 2024 Minutes
The circular also refers to the residual issues listed in the minutes dated 8 March 2024.
It was agreed that these remaining issues would be discussed between the parties so that they can be resolved expeditiously.
This is significant because the latest understanding does not limit the discussions only to the Saturday holiday issue and PLI scheme. Other outstanding matters covered by the earlier minutes will also be taken up.
Proposed Bank Strike and Agitation Deferred
Following the above understanding, the UFBU agreed to defer its proposed agitational programmes and strike actions.
This is an important clarification.
The circular says that the programmes and strike actions are deferred, rather than stating that all underlying demands have been finally settled.
Therefore, the present development should be understood as a deferral following an agreed discussion mechanism, while some issues remain subject to further deliberations.
Key Points at a Glance
| Issue | Latest Position |
| Remaining Saturdays as holidays | High-level IBA-UFBU committee to be formed |
| Saturday holiday issue | Further discussions to explore possible alternatives |
| PLI Scheme for Scale IV & above | Discussions with IBA to begin |
| Government proposal on PLI | To address observations of Unions/Associations |
| Residual issues of 08.03.2024 minutes | To be discussed for expedited resolution |
| Proposed agitation | Deferred |
| Proposed strike action | Deferred |
What Bank Employees Should Know
The latest UFBU communication provides an important update for employees of participating bank unions.
At present, the circular confirms that:
- Strike action has been deferred.
- Agitational programmes have also been deferred.
- A mechanism will be established to discuss the issue of remaining Saturdays as holidays.
- The PLI scheme for Scale IV and above officers will be discussed.
- Other residual issues will also be taken up.
However, employees should wait for subsequent official communications before treating any proposed change in the number of bank holidays as finally approved or implemented.
UFBU Circular No. 2026/31 – Important Details
Organisation: United Forum of Bank Unions (UFBU)
Circular No.: 2026/31
Date: 27 September 2026
Subject: Flash News – Understanding Reached with IBA – Strike Action and Agitation Deferred
Meeting: IBA and UFBU
Major issues: Remaining Saturdays as holidays, PLI Scheme and residual issues
The circular has been signed by representatives of the constituent bank employee/officer organisations, including AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBOC and INBEF.
Conclusion
The 27 September 2026 UFBU communication marks an important development in the ongoing discussions between the Indian Banks’ Association and United Forum of Bank Unions.
The immediate outcome is that the proposed bank strike and agitation have been deferred. At the same time, discussions will continue on the issue of remaining Saturdays as holidays, the PLI Scheme for Scale IV and above officers, and other pending matters.
The next important development will be the constitution of the high-level IBA-UFBU committee and the outcome of its discussions.
Employees should rely on subsequent official communications from UFBU, IBA and the concerned banking authorities for any final decision regarding holidays, PLI or other service-related issues.