Bank employees have long advocated for a five-day work week, and recent reports indicate that this longstanding proposal is likely to receive final approval from the finance ministry by the end of December 2024. If approved, bank branches will be closed on all Saturdays and Sundays, replacing the current practice of closing only on Sundays and the second and fourth Saturdays of each month.
An agreement has already been reached between the Indian Banks’ Association (IBA) and employee unions regarding this change. Bank unions have assured that this shift will not compromise customer service, with plans to extend working hours by nearly 40 minutes to maintain service levels.
In September 2024, the All India Bank Officers’ Confederation (AIBOC) publicly urged the finance ministry and the Prime Minister’s Office to prioritize the approval of the five-day work week proposal, emphasizing its importance for the well-being of bank employees and the overall efficiency of the banking sector. The AIBOC highlighted that banking is a demanding and high-pressure industry characterized by long working hours and a strict zero-tolerance policy for errors. They argued that if any sector deserves a five-day work week, it is banking.
The AIBOC further stated, “Across sectors globally, the five-day work week boosts productivity, enhances efficiency, reduces work-related stress, and fosters growth.”
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In December 2023, a memorandum of understanding was signed between the IBA, which includes both public and private banks, and bank unions. This agreement proposed a five-day work week, contingent on government approval. Subsequently, on March 8, 2024, the 9th Joint Note was signed by the IBA and bank unions, formalizing the transition to a five-day work week with Saturdays and Sundays as days off.
While the IBA and bank unions are in agreement, the final decision rests with the government. The proposal will also be reviewed by the Reserve Bank of India (RBI), which regulates banking hours and interbank activities. No official deadline for the government’s decision has been announced, but bank employee unions anticipate receiving notification by the end of this year or early 2025.
Once approved, Saturdays will be officially recognized as holidays under Section 25 of the Negotiable Instruments Act. Currently, bank branches are closed on the second and fourth Saturdays, but unions have been pushing for full weekends off since 2015. The 10th Bipartite Settlement signed in 2015 resulted in an agreement between the RBI, the government, and the IBA to designate the second and fourth Saturdays as holidays.