Bank Unions Demand Reversal of Controversial PLI Formula

The United Forum of Bank Unions has called for the immediate reversal of a contentious revised performance-linked incentive formula by the Department of Financial Services. The formula is viewed as a unilateral shift from a jointly settled PLI scheme, with calls for resolution through dialogue and negotiation.

The United Forum of Bank Unions (UFBU) has voiced strong opposition against the revised performance-linked incentive (PLI) formula mandated by the Department of Financial Services (DFS). Labeling the move as unilateral and divisive, the UFBU claims it deviates from the previously negotiated PLI scheme framework.

The union has highlighted that discussions around this issue are ongoing with the Chief Labour Commissioner (Central) and emphasizes that such unilateral actions compromise orderly industrial relations. The matter is actively under conciliation as of March 9, 2026.

In a statement, the UFBU has urged the DFS, the Indian Banks' Association, and public sector banks' managements to halt any unilateral implementation and resolve the issue through dialogue and agreed negotiations.

(With inputs from agencies.)