Banks to Operate 5 Days a Week Starting This Month, Adjusting Working Hours
5-Day Working for Banks: Will It Happen by December 2024? Here’s What We Know
Long-awaited demand for a five-day work week in banks likely to be fulfilled soon.
The long-standing demand of bank employees for a five-day work week may finally be fulfilled this year. An agreement has already been signed between the Indian Banks Association (IBA) and employee unions, proposing two days off per week for bank employees. The only step remaining is government approval, which is expected by the end of 2024.
Employee unions, including the United Forum of Bank Unions, have been advocating for a five-day work week with Saturdays off for some time. They have assured that this change will not reduce customer service hours. A Memorandum of Understanding was signed in December 2023 between the IBA. It was representing both public and private banks and bank unions. This agreement, which includes the proposal for a five-day work week, was followed by a joint note signed on March 8, 2024, by the IBA and the All India Bank Officers Confederation.
The final decision now rests with the government. It will also involve discussions with the Reserve Bank of India (RBI), which regulates banking hours and internal functioning. While there is no official deadline from the government, some bank employees expect the notification to come by the end of this year or early 2025. Once approved, Saturdays will be officially recognized as holidays under Section 25 of the Negotiable Instruments Act.
Reports suggest that if the five-day work week is approved, daily working hours could increase. Time would increased by 40 minutes, with banks operating from 9:45 am to 5:30 pm. Currently, bank branches are closed on the second and fourth Saturdays. Bank unions have been demanding holidays on all Saturdays and Sundays since 2015. Under the 10th bilateral agreement signed in 2015, the RBI and the government agreed with the IBA to declare the second and fourth Saturdays as holidays.
