5 Day Work Week for Indian Banks
In December 2023, the Indian Bank Association (IBA) formally proposed to the Department of Financial Supervision, Ministry of Finance, to approve and declare all Saturdays as public holidays, thus implementing a five-day banking system. This proposal comes in response to rising stress levels, evolving working conditions, increased automation, and the availability of banking services 24×7.
Let’s delve into the details of this proposed shift to five-day banking in India.
5 Day Banking
Five-day banking entails banks operating for business purposes five days a week, typically from Monday to Friday. The Indian Bank Association (IBA), representing various categories of banks in India, including public, private, foreign, cooperative, and regional rural banks, has put forward this proposal. The aim is to address a persistent request from public banks to harmonize India’s banking industry with international norms regarding work-life balance.
Bank Timings in India
Previously, banks in India followed a six-day workweek tradition. However, a reform introduced in 2015 through the 10th Bipartite Settlement, signed with the RBI for all banks in India, enabled banks to grant two additional holidays on two Saturdays in a month.
Presently, both public and private banks in India observe mandatory public holidays on the second and fourth Saturdays of every month, while working on the first, third, and fifth Saturdays.
Present Bank Timings in India
Banking operations in India could soon undergo a significant change in their schedule. Presently, banks open on the first and third Saturdays but remain closed on the second and fourth Saturdays. However, there are plans to transition to a Monday-to-Friday schedule, resulting in banks being closed every Saturday and Sunday.
The Indian Banks Association (IBA) and the All India Bank Officers’ Confederation have reached an agreement to adopt a five-day work week, with Saturdays and Sundays off. This decision was formalized with the signing of the 9th Joint Note on March 8, 2024.
According to the press release, the Joint Note recognizes all Saturdays as holidays, contingent upon government notification. The revised working hours will be implemented upon receipt of the government’s notification.
New Timings for Banks in India
The successful implementation of the new workweek hinges on government approval. Once sanctioned, Saturdays will be formally designated as holidays under Section 25 of the Negotiable Instruments Act.
Section 25 of the Negotiable Instruments Act empowers the government to declare every Saturday as a holiday. Given its ownership of public sector banks, the government holds authority in this regard. Additionally, the RBI’s consent is crucial as it regulates the timing of various interbank activities.
Under the new arrangement, reports suggest that bank employees may need to extend their workday by 40 minutes, from 9:45 AM to 5:30 PM.
5 Day Work Week’s Impact on Customers
The proposed shift may impact regular bank customers accustomed to conducting their banking activities on Saturdays. However, with the multitude of alternatives offered by banks such as mobile banking, ATMs, and Internet banking, many customers have increasingly relied on these digital channels as their primary method of accessing banking services.
Will there be a salary hike after the implementation of 5 5-Day Work Week
According to the press release from the All India Bank Officers’ Confederation, the total increase in wage revision amounts to over Rs 8284 crores, constituting 17% of the establishment expenses of Public Sector Banks. After factoring in the applicable load of 3.22%, the effective load on basic pay post-merger of dearness allowance at 30.38% is 4.20%. The new pay scales range from Rs 48480/- to Rs 173860/-, encompassing all scales from Scale I to VII, and will be effective from November 1, 2022.
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FAQs – Bank 5 Day Work Week
Five-day banking refers to banks operating for business only from Monday to Friday, with Saturdays and Sundays off.
After implementing the five-day work week, banks will be open from 9:45 AM to 5:30 PM from Monday to Friday.
Yes, there is a salary hike. The total increase amounts to over Rs 8284 crores, constituting 17% of establishment expenses of Public Sector Banks.
IBA stands for the Indian Banks’ Association, representing various categories of banks in India, including public, private, foreign, cooperative banks, regional rural banks, and Indian financial institutions.
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