The demand for a five-day work week in Indian banks is gaining momentum. After an agreement between the Indian Banks Association (IBA) and employee unions, there is hope that both government and private banks may soon adopt this schedule. Currently, banks operate on Saturdays, but this change would mean closure on both Saturdays and Sundays.
Long-Standing Demand for 5-Day Work Week
Bank employees have been advocating for a five-day work week for years. While this demand hasn’t been approved yet, recent developments suggest that change is on the horizon. The agreement between IBA and the employee unions is a significant step, raising hopes that the government will approve this change by the end of the year.
At present, banks in India remain closed on the second and fourth Saturdays of each month, in addition to every Sunday. With the potential shift to a five-day work week, banks will remain closed on all Saturdays, offering more consistency in operational days.
RBI’s Crucial Role in Approval
The Reserve Bank of India (RBI) and the government both play essential roles in approving the five-day work week for banks. The proposal must first be vetted by the RBI, which governs banking regulations in India. Only after RBI approval can the government give the final nod.
Change in Bank Working Hours
If this five-day week gets approved, there will likely be changes to the banks’ operating hours. Reports suggest that daily work hours could increase by 40 minutes, with banks opening from 9:45 AM to 5:30 PM, instead of the current 10:00 AM to 5:00 PM schedule. This adjustment will ensure that banking services are still available for a similar total number of hours despite the reduced workdays.
Expected Notification Timeline
It is anticipated that a formal notification regarding the five-day work week for banks will be issued either by the end of 2024 or early 2025. If this approval comes through, Saturdays will officially be considered a holiday under the Negotiable Instruments Act, making the five-day work week a reality for bank employees.
