5 Day Banking: The demand for a 5-day work week by bank employees in India is set to be fulfilled in the near future. The Indian Banks’ Association (IBA) and employee unions have already signed an agreement in this regard, with only the government’s approval pending. Bank employees are optimistic that this approval will be granted later in 2024.
Background and Agreement
Bank employee unions, including the United Forum of Bank Unions, have been advocating for a 5-day work week with Saturdays off for some time now. Importantly, they have assured that this change will not result in a reduction in customer service hours.
To address this demand, a memorandum of understanding was signed between the Indian Banks’ Association (IBA) and bank unions in December 2023. The IBA represents both government-run and private lenders, and this agreement included a proposal for a 5-day work week, subject to government approval.
The 9th Joint Note and Decision Process
On March 8, 2024, the 9th Joint Note was signed by the IBA and bank unions. The Joint Note, agreed upon by the IBA and the All India Bank Officers’ Confederation, outlined the transition to a 5-day week with Saturdays and Sundays off. While the IBA and bank unions have reached an agreement, the final decision rests with the government. Additionally, the proposal will also be discussed with the Reserve Bank of India (RBI), which regulates banking hours and interbank activities. At present, no official deadline has been announced by the government.
Expectations and Implementation
Some bank employees have expressed their expectation that the government will issue the necessary notification by the end of this year or early 2025. Once approved, Saturdays will be officially recognized as holidays under Section 25 of the Negotiable Instruments Act. Reports indicate that if the 5-day work week is approved by the government, the revised working hours will also be announced, extending the workday by 40 minutes. The proposed working hours will be from 9:45 am to 5:30 pm.
Current Schedule and Previous Agreements
Currently, bank branches in India are closed on the second and fourth Saturdays of the month. The demand for all Saturdays and Sundays off has been ongoing since 2015. As part of the 10th Bipartite Settlement signed in 2015, the RBI and the government agreed with the IBA and declared the second and fourth Saturdays as holidays.
A very simple formula which applies in case of implementation of five days week in Banks,
“delay in justice, justice denied”
I think all Bankers understand my this above line.
Why is the notification not yet out if the agreement is already signed ? With lot of transactions happening digitally fewer people are visiting the branches. If all Govt institutions like RBI , LIC, SEBI and the Stock Exchanges can have a 5 day week the branches also should