Banks Seek Five-Day Work Week, Request Holidays on All Saturdays

In a move that could benefit over 1.5 million bank employees in India. The Indian Banks Association (IBA) has submitted a proposal to the central government to declare banks all Saturdays off. The proposal, if accepted, would implement a five-day work week for the banking sector. It has been a long-standing demand of the bank unions. 

The IBA represents different types of banks in India, such as public, private, foreign, cooperative, and regional rural banks. The IBA has been advocating for the five-day workweek for several years. It improves the work-life balance of the bank employees, reduces stress, and enhances productivity. Currently, banks in India are close on Sundays and on the second and fourth Saturdays of every month. 

The IBA and the United Forum of Bank Unions (UFBU) introduced the five-day workweek in 2015, after a bipartite settlement. However, the bank unions have been demanding a further reduction in the working days, arguing that the banking sector has undergone significant changes in the past few years, with the advent of digital banking, online transactions, and automation. The bank unions have also pointed out that many countries, including the US, the UK, France, Germany, and Japan, have adopted the five-day work week. 

The Minister of State for Finance, Bhagwat Karad, officially confirmed the proposal put forth by the IBA in a written response to a question asked in the Lok Sabha on Tuesday. Karad said that the IBA has submitted the proposal to the Department of Financial Services under the Ministry of Finance. They did not state whether they have approved the proposal or when they will put it into effect.

The implementation of a five-day workweek could potentially impact both bank employees and customers. It could improve the morale and efficiency of the employees, who have been working under tremendous pressure.

It could also affect the availability and accessibility of banking services for customers, who may have to rely more on digital platforms or visit the bank branches on weekdays. According to Hindustan Times News, the five-day workweek could also entail longer working hours for the bank employees on operational days. It compensates for the loss of working hours on Saturdays. However, this has not been officially confirmed by the IBA or the government. 

The proposal of the IBA comes at a time when the banking sector is also expecting a salary hike of 15% to 20% for its employees, as part of the 12th bipartite settlement. That is likely to be finalized by mid-December. The salary revision for the bank employees has been due since November 1, 2022. The COVID-19 situation has delayed it.

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