The Union Finance Minister on Tuesday met a delegation of bank employees representing various Public Sector Banks (PSBs) to discuss issues affecting employees and the broader banking sector. The delegation was led by the Bharatiya Mazdoor Sangh (BMS) and presented a range of concerns related to employee welfare, compensation and service conditions.
Among the major issues raised during the meeting were the review of ex-gratia benefits, improvement of medical facilities for retired bank employees, and changes to the existing Performance Linked Incentive (PLI) Scheme applicable to PSB employees. The delegation also highlighted other concerns concerning the workforce and sought appropriate consideration from the government.
PLI Scheme Implementation Kept in Abeyance
Following the representation submitted by the bank employees regarding the existing PLI framework, the government decided to temporarily keep the implementation of the PLI Scheme dated November 19, 2024, in abeyance for the financial year 2025–26.
The decision means that the implementation of the specified PLI scheme for PSB employees for FY 2025–26 will not proceed at this stage. Instead, the matter will be considered as part of the ongoing Bipartite Settlement and Joint Note discussions between the stakeholders.
The move is aimed at providing an opportunity to deliberate on the concerns surrounding the current incentive structure and examine the matter through the established mechanism of negotiations and consultations.
Employee Welfare Issues Discussed
Apart from the PLI framework, the delegation brought several employee-related matters before the Finance Minister. One of the key demands concerned a review of ex-gratia payments. Employees also sought better and more comprehensive medical facilities for retired personnel who have served in the public sector banking system.
Such issues have remained important areas of discussion between banking employees’ organisations, managements and the government, particularly as the sector continues to evolve in response to changing customer expectations, technological developments and operational requirements.
The delegation’s representation provided an opportunity for the government to take note of these concerns and consider them within the broader framework of industrial relations in the banking sector.
Dialogue to Guide Further Decisions
The government has emphasised that employee-related issues will be addressed through dialogue, consultation and mutual understanding. The decision to take up the PLI issue during the ongoing Bipartite Settlement and Joint Note discussions reflects this approach.
The discussions are expected to provide a structured platform for stakeholders to examine the concerns raised by employees and work towards mutually acceptable solutions. By bringing the PLI issue into the ongoing negotiation process, the government has signalled its willingness to consider employee representations through established institutional mechanisms.
Focus on Banking Sector’s Wider Interests
Public Sector Banks play a significant role in India’s financial system, supporting credit delivery, financial inclusion, government programmes and banking services across urban and rural areas. Employee welfare and constructive relations between bank managements, employees and policymakers therefore remain important for maintaining the efficiency and stability of the sector.
The government stated that its approach is guided by the larger interests of bank employees, customers and the banking industry. The latest decision on the PLI scheme is consequently being positioned within a broader effort to resolve outstanding employee concerns through consultation rather than unilateral action.
As the Bipartite Settlement and Joint Note discussions continue, the issues raised by the bank employees’ delegation—including PLI, ex-gratia and healthcare benefits for retirees—are likely to remain important subjects of deliberation. The government’s decision to keep the FY 2025–26 PLI implementation in abeyance provides stakeholders additional space to discuss the existing framework and explore possible changes.
Author: Shivam
Shivam Dwivedi is a senior journalist with extensive experience in research-driven journalism, policy communication, and multi-platform storytelling. His areas of interest include international relations, defence, science & technology, education, urban development, agriculture, spirituality, and environmental sustainability. His work focuses on in-depth analysis, public discourse, and impactful narratives across governance and development sectors, with a strong commitment to the Sustainable Development Goals (SDGs). Contact: [email protected]
