Bank GMIS Revision 2026
The Bank Employees Federation of India (BEFI) issued Circular No. 37/2026 announcing a newly signed Memorandum of Understanding (MoU) dated July 17, 2026, between the Indian Banks’ Association (IBA) and the United Forum of Bank Unions (UFBU) regarding significant upgrades to the Group Medical Insurance Scheme (GMIS). Effective November 1, 2026, these revisions modify the 12th Bipartite Settlement to increase hospital room rent caps to ₹7,000 and ICU charges to ₹9,500 in metro cities, raise maternity limits up to ₹1.5 lakhs, and introduce a new ₹2 lakh infertility treatment limit alongside enhanced allowances for critical illnesses, cataracts, and day-care/domiciliary procedures. While the income threshold for dependents under GMIS sees a targeted increase to ₹24,000, unions continue to press for additional reforms, including bank-funded premiums and GST waivers for retired staff.
Circular No. 37/2026
To all Units, Affiliates, Office Bearers, CC & GC Members
18th July 2026
Dear Comrade,
Group Medical Insurance Scheme
A meeting between the Indian Banks’ Association and the constituent Unions/Associations of United Forum of Bank Unions was held on 17 July 2026 in Mumbai to discuss Group Medical Insurance Scheme (GMIS) for employees and officers, both serving and retired of banks (other than State Bank of India). The undersigned attended the Meeting on behalf of BEFI.
The IBA, before the meeting, sought suggestions from the participating Unions. A comprehensive list of suggestions was provided on behalf of UFBU one week prior to the meeting. After detailed deliberations, a Memorandum of Understanding (MoU) between the IBA and the Unions/Associations in the matter of GMIS was signed on 17 July 2026.
In partial modification to Clause 31 of 12th Bipartite Settlement and Clause 8 of 9th Joint Note dated 8 March 2024 the following points were mutually agreed upon:
1. Room Rent shall be increased to ₹7000/- for admission in hospitals in the four metro cities viz., Delhi, Mumbai, Chennai, and Kolkata. For other centres the existing limit of ₹5000/- shall continue.
2. ICU bed charges shall be increased to ₹9500/- for admission in hospitals in the four metro cities viz., Delhi, Mumbai, Chennai, and Kolkata. For other centres the existing limit of ₹7500/- shall continue.
3.For maternity expenses benefit it shall be increased to ₹100000 for normal delivery and ₹150000 for Caesarean Section, which is inclusive of expenses related to child care and vaccination (up to one year age of the child/children). The existing provision of ₹20000/- subsumed within these revised limits.
4.The Ex-gratia payable to employee in case of Critical Illness shall be increased to ₹200000/-.
5.The limit related to treatment of Cataract is increased to ₹50000/- per eye.
6.The income limit of Dependent for the purpose of Medical Insurance increased to ₹24000/-.
7.A separate limit of ₹2 lakhs towards Infertility Treatment (IVF) for eligible employees shall be made, the premium for which will be borne by the Bank.
8.The premium related to Maternity and Infertility shall be obtained from the insurer separately and included while arriving at the premium to be paid by the Bank on behalf of the employee.
9.Extension of existing policy with existing Insurer, if they can extend policy at the same premium for one more year plus additional charge for inclusion or some changes mentioned above and others.
10.Performance of TPA Monitoring on quarterly basis is effective. Union leaders to be invited for the review meetings on rotation basis.
11.The following can be included under Day care:
i. Albumin Infusion.
ii. Peritoneal Dialysis.
iii. Expenses on Oral chemotherapy shall include cost of oral chemotherapy drugs, professional consultation fees and all medically necessary investigations as advised by the consulting physician.
12.The following can be included under Domiciliary treatment:
i. Vector borne diseases such as Dengue and Chikungunya.
ii. Rare diseases listed by Ministry of health & Family Welfare under Group B and Group C.
13.All the revision mentioned from point 1 to 12 above will be effective from 1 November 2026.
14.Other improvements suggested by the Unions/Associations will be discussed with the Insurance companies to explore feasibility.
Apart from the agreed matters as above, many issues/points were taken up by the constituents of UFBU. Emphasis was given on many matters during the discussion, some of which are furnished below:
a. Combined policy for the serving employees and retired to continue.
b. Many hospitals are not providing cashless facility. As per government guidelines, cashless facility is to be provided by all hospitals.
c. Many network hospitals are keeping rate of different treatments secret, transparency in this matter is to be ensured.
d. Efficiency parameters of the TPAs are to be ascertained.
e. Reasons of rejections are to be properly informed.
f. Premium for the Retirees is to be borne by the banks.
g. GST on the premium of Retirees is to be waived.
h. Some increase in the base policy is to be explored.
i. Time limit for claim settlement at the TPA level to be fixed.
j. Increase in Buffer amount to be considered.
k. Ambulance charges to be increased.
It may be noted that the increased income criteria of ₹24000/- for the dependents will be applicable only for GMIS. In all other matters, the income criteria of ₹18000 for the Dependents as agreed in 12th Bipartite Settlement and 9th Joint Note will continue.
With greetings,
Yours Comradely,
(Debasish Basu Chaudhury)
General Secretary.
Source : BEFI
