A high-level committee comprising representatives of the United Forum of Bank Unions (UFBU) and the Indian Banks’ Association (IBA) will explore alternatives to the proposed 40-minute daily extension of working hours to implement five-day banking, UFBU Chief Spokesperson CH Venkatachalam said, adding that the government is in the loop on the matter.
Late on Sunday, the UFBU deferred its three-day strike, which was scheduled to begin on Monday, after reaching an understanding with the IBA on five-day banking, the performance linked incentive (PLI) scheme and other residual issues.
“Earlier, the management had agreed to introduce five-day banking by increasing daily working hours by 40 minutes. But this is not being accepted by the government,” said Venkatachalam, General Secretary of the All India Bank Employees’ Association (AIBEA). “So, now we are appointing a high-level committee to explore other ways in which we can work out five-day banking.”
While the modalities will be worked out, it is possible that a model may be devised under which staff would be deputed on a rotational basis to work on Saturdays while ensuring a five-day working week for employees.
“There are different models for five-day working, and the committee will discuss alternative models,” Venkatachalam said, emphasising that progress has been made on the matter.
“We will talk to the management bilaterally, but the government will be in the picture automatically,” he said when asked if the government had also agreed to their demands.
Banking sources said that since the IBA had earlier recommended a five-day working week, the government has to take the final call on the modus of implementation of five-day banking for bank staff.
Currently, both public sector and private sector banks work on the first and third Saturdays of the month. After approval of the proposed changes, the government will notify all Saturdays as holidays under Section 25 of the Negotiable Instruments Act.
After prolonged negotiations between the IBA and employee unions, the IBA approved their proposal in November 2024 to make all Saturdays holidays for bank staff by increasing daily working hours by 40 minutes. The IBA subsequently sent the proposal to the finance ministry for consideration. It has been pending since then.
Some bank managements have raised concerns about the impact on their businesses and productivity, while the trade and industry have also expressed concerns that their business and credit flows might be affected.