Five-Day Banking Week: IBA Sets Up Panel With Unions To Discuss All-Saturday Holiday
New Delhi: The long-standing demand for a five-day banking week has moved another step forward, with the Indian Banks’ Association (IBA) setting up a high-level committee to discuss the proposal with bank employee unions.
The panel was formed following a meeting between the IBA negotiating committee and the United Forum of Bank Unions (UFBU) on September 27. Representatives of both bank management and employee unions will be part of the committee.
According to an official IBA statement, Bank of India MD and CEO Rajneesh Karnatak has been appointed chairman, while Punjab National Bank MD and CEO Ashok Chandra will serve as alternate chairman.
The IBA representatives on the committee include Indian Bank MD and CEO Binod Kumar, Bank of India MD and CEO Rakesh Sharma, and SBI Chief General Manager (HR & CDO) G S Rana.
The UFBU will be represented by several senior union leaders, including AIBEA General Secretary C H Venkatachalam, AIBOC General Secretary Rupam Roy, NCBE General Secretary L Chandrasekhar, AIBOA General Secretary Sanjay Khan, BEFI General Secretary Debasish Bhowdhury, INBOC General Secretary Prem Makkar and INBEF General Secretary O P Sharma. BKSM General Secretary Vinod Nikam will participate as an invitee.
What Does The Five-Day Banking Week Proposal Mean?
Bank unions have been demanding a five-day work week for several years. If approved, banks would remain closed on all Saturdays and Sundays, instead of the current arrangement under which only the second and fourth Saturdays are generally holidays.
The proposal would require changes to working hours on the remaining weekdays so that the overall working hours are maintained.
During bipartite discussions on January 31, 2023, the IBA proposed increasing daily working hours by 45 minutes to facilitate a five-day banking week. Bank unions had earlier proposed an increase of 30 minutes.
The discussions continued in the months that followed.
In June 2023, the UFBU asked the IBA to speed up the process, referring to a tentative understanding reached during a meeting on February 28, 2023, regarding revised business hours.
Proposal Included In 2024 Banking Settlement
The five-day week proposal was subsequently included in negotiations for the 12th Bipartite Settlement and 9th Joint Note.
On December 7, 2023, the IBA and UFBU signed a memorandum of understanding under which the IBA agreed to recommend declaring all Saturdays as holidays for banks and pursue the proposal with the government for early approval.
The proposal was later incorporated into the final 12th Bipartite Settlement/9th Joint Note, signed on March 8, 2024.
Under the settlement, the IBA recommended that all Saturdays be declared bank holidays under the Negotiable Instruments Act.
However, the revised working hours and the five-day banking week would come into effect only after the necessary government approval and other required clearances.
What Happens Next?
The newly formed committee will now take forward discussions between bank management and employee representatives on how the proposal could be implemented.
For bank employees, the move could eventually mean a regular five-day working week with every Saturday and Sunday as holidays. However, the proposal still requires the necessary government approval before it can be implemented.
The committee’s discussions will therefore be closely watched by bank employees, unions and customers awaiting clarity on when, and if, the proposed five-day banking schedule will take effect.
News Source : Information for this article was gathered from a variety of reliable news outlets.
