Even as bank employees have been raising demand for a 5-day work week, the long-standing proposal is now likely to receive the finance ministry’s final approval by the end of December 2024, according to media reports. As a result of this, bank branches will remain closed on all Saturdays and Sundays, instead of all Sundays and second & fourth Saturdays currently.
An agreement has already been finalised in this regard between the Indian Banks’ Association (IBA) and employee unions.
Bank employee unions have assured that this would not lead to a reduction in customer service hours. To ensure this, the timing will also be revised to extend working hours by nearly 40 minutes.
In September 2024, the All India Bank Officers’ Confederation (AIBOC) in a post on X urged the finance ministry and the Prime Minister’s Office to prioritise approving the 5-day work week proposal “for the well-being of bank employees and to further enhance the banking sector’s efficiency”.
Banking is a demanding & high-pressure service industry with long hours of work and zero tolerance for human errors. If any sector deserves a 5-day work week on priority, it’s banking, the AIBOC stated.
“Across sectors globally, the 5-day work week boosts productivity, enhances efficiency, reduces work-related stress, and fosters growth,” it said.
In December 2023, a memorandum of understanding was signed between the Indian Banks’ Association (IBA), which includes both government-run and private lenders, and bank unions. This agreement included a proposal for a 5-day workweek, subject to government approval.
Subsequently, on March 8, 2024, the 9th Joint Note was signed by the IBA and bank unions. The Joint Note, signed by 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 agreed, the final decision now lies with the government. The proposal will also be discussed with the Reserve Bank of India (RBI) as it regulates banking hours and interbank activities. There’s no official deadline announced by the government on that.
However, according to reports, bank employee unions expect the notification by the government by the end of this year or early 2025.
Once approved, Saturdays will be officially recognised as holidays under Section 25 of the Negotiable Instruments Act.
Currently, bank branches are closed on second and fourth Saturdays. Banks unions have been demanding since 2015 offs on all Saturdays and Sundays. Under the 10th Bipartite Settlement signed in 2015, RBI and the government agreed with the IBA and declared second and fourth Saturdays as holidays.
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