The five-day banking week proposal is set to move into a key stage as a high-level committee formed by the Indian Banks’ Association (IBA) begins discussions on its implementation. The panel is expected to work on its recommendations before the Reserve Bank of India (RBI) and the finance ministry decide on the next steps, according to a Business Today report.
The committee was established shortly after bank unions called off a proposed three-day strike amid ongoing negotiations. Its mandate is specifically focused on examining how banks could shift to a Monday-to-Friday work schedule while maintaining customer access to banking services.
Panel to Focus Only on Five-Day Week
All India Bank Employees’ Association (AIBEA) General Secretary CH Venkatachalam said the committee will concentrate on the implementation of the five-day banking week.
Once the panel submits its recommendations, the RBI and finance ministry would need to consider the proposal and make any required regulatory or legislative changes.
Other demands raised by bank unions, including performance-linked incentives, pension-related issues and working conditions, will not be part of the committee's discussions. Those matters are expected to be addressed separately.
The panel includes senior representatives from the IBA and the United Forum of Bank Unions (UFBU), along with BKSM General Secretary Vinod Nikam. Bank of India MD and CEO Rajneesh Karnatak will serve as chairman, while Punjab National Bank MD and CEO Ashok Chandra will be the alternate chairman.
What Will Change for Bank Employees?
Under the proposal, bank employees would work five days a week while banks would continue to ensure adequate customer service and operational coverage.
At present, banks generally remain closed on the second and fourth Saturdays of every month. The proposal would replace the existing arrangement with a Monday-to-Friday working schedule.
Bank unions have been demanding the change for several years, arguing that employees often work beyond standard hours. They have also pointed to the five-day working schedule followed by institutions such as the RBI and the Department of Financial Services.
What Happens Next?
The five-day banking week proposal has been under discussion for more than two years. Bank unions have maintained that the 12th bipartite settlement included a commitment toward implementing a five-day work week.
The committee's recommendations will now become an important part of the process. Following its report, the RBI and finance ministry will determine whether and how the proposal can be implemented across the banking sector.
For customers, the key issue will be ensuring that any change in employee working days does not reduce access to essential banking services.
Related: RBI official website
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