UPSC Prelims Practice Questions — Govt. pauses bank staff PLI scheme ahead of strike

Q1. With reference to the revised Performance Linked Incentive (PLI) scheme issued for public sector banks on 19 November 2024, consider the following statements: 1. The revised scheme was made effective from the financial year 2023-24. 2. The scheme it replaced was applicable only to Whole-Time Directors of the banks. 3. Coverage under the revised scheme was extended to officers in Scale IV to Scale VIII of public sector banks. 4. The revised scheme rests solely on individual officers' appraisal ratings and leaves out the bank's overall performance, including its performance in Government sponsored schemes. Which of the statements given above is/are correct?

  1. The revised scheme was made effective from the financial year 2023-24.
  2. The scheme it replaced was applicable only to Whole-Time Directors of the banks.
  3. Coverage under the revised scheme was extended to officers in Scale IV to Scale VIII of public sector banks.
  4. The revised scheme rests solely on individual officers' appraisal ratings and leaves out the bank's overall performance, including its performance in Government sponsored schemes.
  • A. 1 and 2 only
  • B. 2 and 4 only
  • C. 1, 2 and 3 only
  • D. 1, 3 and 4 only

Q2. The revised Performance Linked Incentive scheme of 19 November 2024 for Whole-Time Directors and senior executives of public sector banks was issued with the approval of which one of the following?

  • A. The Cabinet Committee on Economic Affairs, on the recommendation of NITI Aayog
  • B. The Union Finance Minister, on a proposal of the Department of Financial Services
  • C. The Central Board of the Reserve Bank of India, in consultation with bank managements
  • D. The Indian Banks' Association, in consultation with the constituent bank unions

Q3. With reference to the recent agitation announced by the United Forum of Bank Unions (UFBU), consider the following: 1. A one-day nationwide bank strike on September 11. 2. A three-day strike on September 28, 29 and 30. 3. A threatened indefinite nationwide strike from October 26 if demands remain unresolved. 4. A demand that the number of PLI days be differentiated between clerical employees and officers instead of being kept uniform. Which of the above is/are NOT correct?

  1. A one-day nationwide bank strike on September 11.
  2. A three-day strike on September 28, 29 and 30.
  3. A threatened indefinite nationwide strike from October 26 if demands remain unresolved.
  4. A demand that the number of PLI days be differentiated between clerical employees and officers instead of being kept uniform.
  • A. 1 and 4 only
  • B. 2 and 3 only
  • C. 3 only
  • D. 4 only

Q4. In the UFBU's charter of demands, the 'five-day banking week' proposal is best described as which one of the following?

  • A. Suspension of all banking services, including digital and ATM channels, on two fixed days every week across the country
  • B. A five-day schedule applicable exclusively to officers up to Scale VII, with clerical and subordinate staff continuing to work six days
  • C. Closure of branches on all Saturdays and Sundays accompanied by a proportionate cut in total weekly working hours and pay
  • D. Reduction of bank working days to five, with the hours lost thereby redistributed across the remaining working days

Q5. Which one of the following correctly describes the United Forum of Bank Unions?

  • A. A statutory wage board constituted by the Department of Financial Services to determine pay scales in public sector banks
  • B. An association of bank managements mandated by member banks to negotiate wage revision on their behalf
  • C. An umbrella body of bank employees' and officers' organisations, including AIBEA, AIBOC and NCBE
  • D. A confederation of private and foreign bank staff associations recognised by the Reserve Bank of India

Q6. Consider the following statements comparing the bodies involved in public sector bank wage negotiations: 1. Unlike the Indian Banks' Association, whose constituents are banks, the UFBU's constituents include both employees' federations such as AIBEA and officers' bodies such as AIBOC. 2. Every union that has ever joined the forum continues as a constituent, so the National Organisation of Bank Workers remains part of the UFBU today. 3. Wage revision for public sector bank employees is settled through bipartite negotiation between the IBA, mandated by bank managements, and the unions or associations of bank employees. Which of the statements given above is/are correct?

  1. Unlike the Indian Banks' Association, whose constituents are banks, the UFBU's constituents include both employees' federations such as AIBEA and officers' bodies such as AIBOC.
  2. Every union that has ever joined the forum continues as a constituent, so the National Organisation of Bank Workers remains part of the UFBU today.
  3. Wage revision for public sector bank employees is settled through bipartite negotiation between the IBA, mandated by bank managements, and the unions or associations of bank employees.
  • A. 1 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q7. Recognition of the Bharatiya Mazdoor Sangh as a Central Trade Union Organisation is accorded by which one of the following?

  • A. The Department of Financial Services under the Ministry of Finance
  • B. The Ministry of Corporate Affairs, Government of India
  • C. The Ministry of Home Affairs, Government of India
  • D. The Ministry of Labour and Employment, Government of India

Q8. With reference to the Bharatiya Mazdoor Sangh and its founder, consider the following: 1. The Bharatiya Mazdoor Sangh was founded in 1962, some years after the Bharatiya Kisan Sangh had been set up. 2. Its founder, Dattopant Thengadi, was also the founder of the Bharatiya Kisan Sangh. 3. Thengadi, a proponent of 'swadeshi economics', proposed in his 1995 work 'The Third Way' an economic path distinct from both capitalism and communism. 4. The Bharatiya Mazdoor Sangh is recognised by the Union labour ministry but is smaller than every other central labour organisation in India. Which of the above is/are NOT correct?

  1. The Bharatiya Mazdoor Sangh was founded in 1962, some years after the Bharatiya Kisan Sangh had been set up.
  2. Its founder, Dattopant Thengadi, was also the founder of the Bharatiya Kisan Sangh.
  3. Thengadi, a proponent of 'swadeshi economics', proposed in his 1995 work 'The Third Way' an economic path distinct from both capitalism and communism.
  4. The Bharatiya Mazdoor Sangh is recognised by the Union labour ministry but is smaller than every other central labour organisation in India.
  • A. 1 and 4 only
  • B. 2 and 3 only
  • C. 1, 2 and 3 only
  • D. 4 only

Q9. The 'mega consolidation' of public sector banks brought into effect from 1 April 2020 consisted of which one of the following?

  • A. Amalgamation of six public sector banks into the State Bank of India, reducing the number of public sector banks to four
  • B. Amalgamation of ten public sector banks into four anchor banks, resulting in the creation of seven large public sector banks
  • C. Amalgamation of ten public sector banks into four, with Indian Bank amalgamated into Allahabad Bank as one of the four anchors
  • D. Amalgamation of fourteen private sector banks into six nationalised banks, taking the number of public sector banks to twelve

Q10. The five-day banking week proposal, having been agreed at the bipartite level and forwarded to the Government, is awaiting the approval of which one of the following?

  • A. The Reserve Bank of India and the Central Government
  • B. The Department of Personnel and Training and the Central Government
  • C. The Banks Board Bureau and the Ministry of Labour and Employment
  • D. The Securities and Exchange Board of India and the Central Government

Q11. Which one of the following correctly states the position on notice of strike under the Industrial Relations Code, 2020?

  • A. Strikes are permanently prohibited in every establishment classified as a public utility service, and no notice mechanism is available to workers there
  • B. A notice of six weeks is mandatory in every establishment, and any strike is barred throughout the pendency of proceedings before any authority whatsoever
  • C. A prior notice of fourteen days is required in any establishment, and such notice remains valid for a maximum of sixty days
  • D. No notice is needed in any establishment except the railways, where alone a fourteen-day notice must be served on the industrial tribunal

Q12. The Department of Financial Services has directed that PLI payment to public sector bank executives in Scale IV to VIII remain in abeyance until further orders, with the issue to be taken up in which one of the following forums?

  • A. The 12th Bipartite Settlement / 9th Joint Note discussions
  • B. The 13th Bipartite Settlement / 10th Joint Note discussions
  • C. The Financial Stability and Development Council chaired by the Finance Minister
  • D. The Managing Committee of the Indian Banks' Association