A significant shift in the banking sector is on the horizon as an agreement for a 5-day work week, with Saturdays off, has been reached between the Indian Banks’ Association (IBA) and employee unions. Pending government approval, this move is expected to enhance work-life balance for bank employees without compromising customer service standards.
Agreement and Progress: Bank employee unions, including the United Forum of Bank Unions, have long advocated for a 5-day workweek. In December 2023, a memorandum of understanding was signed between the IBA and bank unions, proposing the transition. Further progress was marked by the signing of the 9th Joint Note on March 8, 2024, outlining the details of the new work schedule.
Awaiting Government Approval: While the IBA and bank unions are in agreement, the final decision rests with the government. Discussions with the Reserve Bank of India (RBI) are also underway, considering its regulatory authority over banking hours and activities. While an official deadline is yet to be announced, bank employees anticipate government approval by late 2024 or early 2025.
Implications and Adjustments: Upon approval, Saturdays will be officially recognized as holidays under Section 25 of the Negotiable Instruments Act. Additionally, working hours are expected to be extended by 40 minutes, from 9:45 am to 5:30 pm. Currently, bank branches observe closures on second and fourth Saturdays, a practice established under the 10th Bipartite Settlement in 2015.
Conclusion: The transition to a 5-day work week heralds a positive change for bank employees, aligning with modern work-life balance expectations. With both unions and the IBA on board, pending government approval signifies the imminent realization of this transformative shift in the banking sector’s operational framework.
