Know all about five-day banking proposal by Indian Bank AssociationÂ
Know all about five-day banking proposal by Indian Bank Association
The Indian Bank Association (IBA) put forward a formal consideration to the Department of Financial Supervision, Ministry of Finance, in December 2023. It was formal approval and consideration for five-day banking and declaring Saturday a public holiday.
This demand was initiated by the bank officials due to the given working conditions and rising stress levels as the automation of banks took place, making the banks available 24/7.
If the plan gets approved, the operational hours of the bank will undergo a vast change, which will affect the lives of both employees and consumers.
Earlier, the banks used to operate six days a week, from Monday to Saturday. But after the reform, which was introduced in 2015 under the 10th Bipartite Settlement, which was signed by the Reserve Bank of India (RBI), it stated that the Indian banks are allowed to take two extra holidays on two Saturdays in a month. For now, all public and private banks in India have a compulsory public holiday on the second and fourth Saturdays of the month.
Currently, there is no announcement of the five-day banking plan to be implemented. Though it has been approved by Bhagwat Karad, Minister of State of Finance, it is yet to be approved by the Ministry of Finance. If it is approved by the Ministry of Finance, then it will be sent to the Reserve Bank of India for further consideration.
