The government is considering a five-day work week for bank employees, pending financial approval. An agreement is awaited between the IBA and the unions, aiming to provide two days off per week. If passed, banks may change at the end of the year, currently closed on Sundays and some Saturdays. Management discussions are ongoing with RBI, to improve operational efficiency.
Bankers, who have long advocated for a shorter work week, will find hope in the upcoming budget as the government decides on their please. The recent agreement between the Indian Banks Association (IBA) and labor unions that outlined the rules for two days off in a week has given rise to hope. However, the deal is still awaiting government approval, which is expected to coincide with the financial announcement. If the deal goes through, workers could switch to a five-day work week by the end of the year.
Currently, banks are closed on every Sunday and the second and fourth Saturday. The Company’s Staff Meeting assures stakeholders that customer service will not be affected by the proposed changes.
In a major change, the Memorandum of Understanding (MoU) involving IBA, government agencies, private banks and trade unions was signed in December 2023, setting stage for this change. After that, on March 8, 2024, the 9th Joint Note is not regular on Saturday and Sunday as holidays according to the new schedule.
Looking ahead, discussions with the Reserve Bank of India (RBI) will create the necessary regulatory framework to implement the monetary reform agenda. Government announcements are expected by the end of the year or early 2025 to recognize Saturday as a public holiday under Article 25 of the Collective Bargaining Act.
According to internal reports, if approved, daily banking hours will be extended by 40 minutes, rescheduling working hours from 9:45 a.m. to 5:30 p.m. . The banking institutions have been anxious on every holiday since 2015, starting business in a bilateral agreement between the RBI, the government and the IBA.
