India is into a longtime debate on 5-day workweek for banks. Currently, banks work six days a week, and observes the close on the second and fourth Saturdays. Meanwhile, there has been a long-standing demand from bank employees to adopt a 5-day workweek for the banks.
The Indian Banks’ Association (IBA) and bank unions agreed to a proposal for banks to adopt a 5-day workweek in December 2023. However, this is the subject to government approval. In March 2024, the IBA and bank unions signed the 9th Joint Note, which highlighted the plans to switch to a 5-day workweek. Moreover, this plan included the offs on Saturdays and Sundays.
The media reports suggested that the banking employees’ long-standing demand for a 5-day workweek may get final approval from the finance ministry by the end of December 2024, which didn’t happen. As of now, the government has not announced any official deadline on this matter.
Notably, bank unions, under the umbrella of United Forum of Bank Unions (UFBU), have announced a 2-day nationwide strike starting March 24, 2025, to push for their demands, including 5-day work week and adequate recruitment across all cadres.
5-Day Working For Banks: Why It Is Important & Challenges Ahead
Banking employees believe that a 5-day work week will release the pressure from them and give them additional time for family and friends. Furthermore, this can further boost the productivity.
Currently, in India, most of the financial institutions and governments follow 5-day work week. Moreover, employees of the central government employees, state governments’, Reserve Bank of India (RBI), Life Insurance Corporation (LIC), courts, stock exchanges, most MNCs and private companies observe 5-day work week. Therefore, banking employees’ demand seems quite adequate at this given point in time.
Challenges Ahead
- Reserve Bank of India’s (RBI) approval is one of the most important aspect of this development.
- Implementing a 5-day workweek for banks across India’s vast and diverse landscape poses significant challenges. This can potentially disrupt seamless banking services.
- A mutual agreement between employees and management on working hours, salaries, and operational changes is essential for a smooth implementation of the 5-day workweek system.
Notably, to maintain hassle-free customer service, bank employees will work 40 minutes extra each day to make up for the shorter workweek.
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