
According to a report by Financial Express, the Indian government is considering the implementation of a five-day working week for banks before the model code of conduct (MCC) comes into effect ahead of the Lok Sabha elections. This move comes after public-sector bank employees are set to receive a 17% salary increase, following the signing of a memorandum of understanding (MoU) between the Indian Banks’ Association (IBA) and bank unions in December of last year.
Unions’ Request for a Five-Day Work Week
Bank unions have been advocating for the implementation of a five-day work week, similar to government offices, RBI offices, and the Life Insurance Corporation of India, who already operate on a five-day schedule. The IBA and employee unions approved this proposal in November, and it was subsequently sent to the finance ministry for consideration.
Government’s Support and Timing
An official stated that the government is in support of the five-day work week proposal and has been waiting for the right moment to announce it. It appears that now is the opportune time for the government to make this announcement.
Current Working Schedule and Potential Changes
Currently, both public sector and private sector banks work on the first and third Saturdays of each month. However, if the proposed changes are approved, all Saturdays will be designated as holidays under Section 25 of the Negotiable Instruments Act.
Previous Changes in Bank Holidays
In 2015, the government issued a notification declaring every second and fourth Saturday of every month as a public holiday under Section 25 of the Negotiable Instruments Act of 1881. As a result, all scheduled and non-scheduled banks observe public holidays on the second and fourth Saturdays.
Employee Statistics
As of now, there are approximately 1.54 million employees in the banking sector, including both public and private banks, payment banks, and small finance banks. Regional Rural Banks employ around 95,000 individuals.
MOU between IBA &UFBU was also signed on 9.11.23 for one more option to Resignees to opt for pension. It has not been mentioned here.