Finance Ministry Set to Approve 5-Day Banking Week, Banks to Close on Saturdays
The Indian banking sector is set to undergo a significant change as the Finance Ministry is expected to approve a 5-day banking week, with banks closed on both Saturdays and Sundays.
This move follows an agreement reached between the Indian Banks’ Association (IBA) and bank employee unions, with a proposal to slightly extend daily working hours by 40 minutes to compensate for the change.
Five-Day Banking Week Proposal Nears Approval
The move is aimed at improving the work-life balance of bank employees while maintaining customer service standards. A Memorandum of Understanding (MoU) was signed in December 2023 between the IBA and bank unions, representing both public and private sector banks. On March 8, 2024, IBA and the All India Bank Officers Confederation (AIBOC) issued a joint note confirming the implementation of a 5-day work week for banks.
Banking Reforms to Benefit Employees
Bank unions, including the AIBOC, have appealed to the Ministry of Finance and the Prime Minister’s Office to fast-track the approval process, calling the reform necessary for the welfare of bank employees and to improve efficiency in the banking sector. A notification from the government is expected by December 2024 or early 2025.
Under the proposed schedule, Saturdays will be officially recognized as holidays under Section 25 of the Indian Organization Act. Currently, banks only observe holidays on the second and fourth Saturdays. Bank unions have been advocating for all Saturdays to be declared holidays since 2015.
Improved Work-Life Balance and Efficiency
According to bank officials, the 5-day work week will provide employees with much-needed rest and help recharge their productivity. Customers will need to confirm the operating hours of local branches once the new schedule is implemented. The change is anticipated to enhance employee morale and improve overall efficiency in the banking sector.
