Banks Get Push for Five-Day Work Week

The push for a five-day banking week has gained momentum after the Indian Banks' Association (IBA) constituted a high-level committee to discuss implementation of the proposal with bank employee unions.

The committee was formed after the IBA and United Forum of Bank Unions (UFBU) held discussions on September 27, following which the unions deferred their proposed three-day nationwide strike scheduled for September 28 to 30. 0

KEY DEVELOPMENT
The proposed five-day banking week would make all Saturdays holidays for banks, with the issue now being examined by a committee comprising representatives of bank management and employee unions.

Bank of India MD and CEO Rajneesh Karnatak has been appointed chairman of the committee, while Punjab National Bank MD and CEO Ashok Chandra will serve as alternate chairman. Representatives from other banks and UFBU-affiliated unions are also part of the panel. 1

The five-day banking proposal has been under discussion for several years. During bipartite discussions in January 2023, the IBA proposed increasing daily working hours to facilitate a five-day week. The proposal was later included in the 12th Bipartite Settlement and 9th Joint Note signed in March 2024, subject to government approval and necessary clearances. 2

GOVERNMENT APPROVAL PENDING
The formation of the committee does not mean that a five-day banking week has been approved. Government sources have said there has been no formal commitment to implement the change. 3

Bank unions have made the five-day work week one of their key demands. The deferred strike also involved other issues, including concerns over the performance-linked incentive framework and pension-related matters. 4

The committee will discuss possible alternatives, consult stakeholders and work towards a solution acceptable to banks, employees and customers. Any change to the existing banking schedule would require the necessary approvals before taking effect. 5