26/09/2026
🎯The P.J. Nayak Committee (2014) and the Narasimham Committee ( 1991 & 1998 ) are the primary panels that recommended reducing government stakes and reforming public sector banks in India.
🎯Key Goals of Privatisation of Public Sector Banks —— Efficiency, Capital Independence & BadLoans / NPAs.
🎯 The Indian government has kept the Performance Linked Incentive (PLI) scheme for public sector bank executives (Scale IV to VIII) in abeyance for the financial year 2025–26 following strong union objections.
🎯 PLI Scheme —— A variable annual performance pay component meant to reward employees and executives over and above regular salaries.
🎯The United Forum of Bank Unions (UFBU) opposed the revised structure, citing divisive disparities between senior management and regular staff, and a departure from uniform bipartite agreements.