Banks May Soon Operate 5 Days a Week, With Extended Working Hours by Up to 40 Minutes
Banks May Soon Operate 5 Days a Week, With Extended Working Hours by Up to 40 Minutes
Bank employees could soon benefit from a 5-day workweek, while customers may see extended banking hours, pending government approval.
The central government is expected to soon approve the long-standing demand of Indian bank employees for a 5-day workweek. This proposal, backed by the Indian Banking Association (IBA) and the United Forum of Bank Unions (UFBU), aims to reduce the current six-day workweek, while extending daily working hours by 40 minutes.
Currently, banks observe holidays on the second and fourth Saturdays, as per the 10th bilateral agreement between the Reserve Bank of India (RBI) and the government. However, the IBA has been pushing for all Saturdays to be declared holidays—a move that could be implemented by end of 2024 or in start of 2025.
Potential Changes in Bank Operations
If the government approves this proposal, banks will operate only from Monday to Friday. To accommodate the reduced workweek, daily operating hours will increase slightly. According to the new schedule, banks would open from 9:45 a.m. to 5:30 p.m., compared to the current hours.
This change, which is expected to bring relief to bank employees, could come into effect after Diwali 2024. A final decision from the government is still awaited but the IBA and UFBU have already reached an agreement on the proposal.
Timeline of the Demand
The push for a 5-day workweek has been ongoing since 2015, with bank unions advocating for every Saturday and Sunday to be holidays. While the government has previously approved partial holidays, such as on the second and fourth Saturdays, this latest proposal would further align the banking sector with other industries that observe a 5-day workweek.
A formal agreement between the government, IBA and UFBU is expected to be signed soon, with a final decision anticipated by the end of 2024.
