The decision places the performance-linked incentive, or PLI, scheme in abeyance for FY26. The report describes a postponement, rather than an announcement that the scheme has been permanently withdrawn. It does not state when implementation could resume.

Finance Minister Nirmala Sitharaman met representatives of bank employees to discuss their concerns. The government’s move came after representations seeking a fresh look at how the incentive scheme is structured. However, the supplied report does not identify the representatives or give details of the concerns they raised.

For employees tracking incentive-related developments, the confirmed position is that the FY26 scheme is on hold. No revised structure, incentive amount or payment schedule has been stated. The report also does not explain whether any particular provisions would be retained or changed following the request for a review.

Several practical questions therefore remain unanswered, including how the pause will be implemented across banks and what further communication employees can expect. The report provides no bank-wise instructions or date for a further decision. Those details should not be assumed from the postponement alone.