Banks push for 5-day work week, IBA submits proposal for holidays on all Saturdays

Since 2015, banks in India have adhered to public holidays on the second and last fourth Saturdays of each month, a schedule met with demands for a five-day work week, particularly from public banks. Today, confirmation from the Union Finance Ministry in Parliament revealed that India’s banking sector has officially proposed declaring all Saturdays as official holidays.

Minister of State for Finance, Bhagwat Karad, responded to queries about the Indian Banks Association (IBA) seeking a five-day work week, confirming that the IBA had submitted a proposal. The IBA represents a diverse range of banks in India, including public and private banks, foreign banks with a presence in India, cooperative banks, regional rural banks, and all Indian financial institutions, collectively employing over 1.5 million individuals.

While the finance ministry’s response did not specify whether the proposal had been accepted or could be considered in the future, sources familiar with the matter suggested that if approved, the transition to a five-day work week might come with extended working hours during operational days.

The potential shift to a five-day work week could significantly impact the operational landscape of the banking industry, affecting both employees and customers. The proposal is now awaiting further clarification and official confirmation from the Finance Ministry.