It’s now or never! AIBOA issues Clarion Call for 5 Day Banking, Privatisation and PLI

The All India Bank Officers’ Association (AIBOA) has called on its members to prepare for a long-drawn struggle to secure two key demands — a five-day banking week and performance-linked incentives (PLI) for the entire banking staff, not just executives. The union has also raised concerns over the disinvestment in public sector banks. There is a growing fear of possible entry of large foreign investors into India’s banking sector. As per reports, the foreign companies are planning to buy stake in IDBI Bank.

The 5-Day Banking Demand

According to AIBOA, the demand for a five-day work week for bank employees started from February 2006. This was the time major changes happened in the industry due to the rise of digital and alternative banking channels.

Partial success came nine years later, in September 2015, when alternate Saturdays were declared holidays as part of the 7th Joint Note on officers’ wage revision. Since then, bank unions have been demanding Government to make all Saturdays holidays. Even the Bank Employees have announced to extend daily working hours by 42 to 45 minutes.

The Indian Banks’ Association (IBA) and unions reached an agreement on 5 Day Banking in February 2023. The Department of Financial Services (DFS) in the Ministry of Finance reportedly received formal recommendations in November 2023. However, in August 2024, then DFS Secretary Vivek Joshi stated that other stakeholders who rely on Saturday banking, also needed to be consulted.

Union leaders say that despite repeated discussions, replies in Parliament have been “contrary to expectations,” and progress remains stalled. In the Lok Sabha session, Question was asked related to 5 Day Banking but the government did not provide any proper reply.

The Government said:

Indian Banks’ Association (IBA) has submitted a proposal to declare all Saturdays as banking holiday. In regard to the Saturdays being public holiday, subsequent to 10th Bipartite settlement/ 7th Joint note signed between IBA and Workmen Unions/Officer Associations, Government, in exercise of powers conferred by section 25 of the Negotiable Instruments Act, 1881, vide notification dated 20.8.2015, had declared the second and the fourth Saturdays of every month as public holiday for banks in India.

The government’s reply clearly shows that it has avoided addressing the issue of 5-day banking. The response was vague and lacked any concrete information.

Yesterday, a meeting was held between bank unions, the IBA, and officials of the Labour Ministry. However, no concrete decision was taken on 5-day banking. The Labour Commissioner has repeatedly requested the DFS to provide updates on its implementation, but so far, the DFS has not given any proper response. It appears that the government is not concerned about the demands of bank employees.

Click here to read decisions taken in Yesterday’s Meeting

Concerns Over Disinvestment

AIBOA has also raised the alarm over the government’s disinvestment plans. On August 11, 2025, IDBI Bank employees across the country observed All India Strike. The Government is planning to privatise the Bank and there is possibility that the Bank might be sold to Foreign Companies. As per reports, the Government may sell IDBI Bank by December 2025.

Click here to read about All India Strike by IDBI Bank Employees

PLI for All Bank Staff

Currently, Performance-Linked Incentives (PLI) in banks are structured primarily for executives. AIBOA is demanding that similar benefits be extended to the entire workforce because every staff member contributes to the bank’s performance.

“Now or Never” Call

AIBOA General Secretary S. Nagarajan urged members to be ready for collective action:

“It is now or never. Prepare for a struggle to halt foreign intrusion in banking and to secure five-day banking.”

The union will meet with other banking federations soon to decide the next course of action. If the government continues to ignore the demands of bank employees, they may launch a large-scale strike across the country. Union leaders have said that they have been patient for a long time, but the lack of response from the authorities is leaving them with no choice but to take stronger steps. They also warned that such a strike could disrupt banking services nationwide and cause inconvenience to millions of customers, but the responsibility for this would lie with the government for not addressing the employees’ concerns.