The Indian Banks Association (IBA) and bank officers unions recently concluded deliberations around wage settlement. The proposal of five-day work week also found a mention in the joint note that was signed by them. The 9th Joint Note, signed on March 8, 2024, outlined these changes, designating all Saturdays as holidays once government approval is secured. The Indian Bank Association (IBA) in December last year (2023) formally put forward a consideration to the Department of Financial Supervision, Ministry of Finance, for its approval and declaration for five-day banking and declaring all Saturdays as public holidays, given the working conditions and rising stress levels, along with increased automation and the availability of banking services 24×7.
“In the settlement that was concluded in 2015, it was agreed that the second and fourth Saturdays of the month would be observed as bank holidays. You are well aware of the increasing stress under which the workforce in the banks are doing their job. Indian banks have adopted core banking solutions long back. Most of the transactions can be done online without visiting the bank branch. Practically there is no need for customers to visit a bank branch nowadays.
Bank unions had written to Finance Minister Nirmala Sitharaman in February urging the implementation of five-day work week. The section 25 of the Negotiable Instruments Act mandates the government to declare every Saturday as a holiday. The government, owning public sector banks, has authority in this matter. It should be noted that this move not only improves work-life balance for employees but could also potentially enhance efficiency and productivity within the banking system. When a five-day week is adopted, various benefits accrue to the banks and the following are considered significant: Enhanced efficiency, Reduced absence rate, Enhanced enterprise competition, Retention of talents and Promotion of corporate image. Complete shutting of offices will also result in considerable savings on the cost of electricity etc. The following benefits may accrue to the employees also: Rest and recuperation leading to greater devotion, Enhance time with family, lesser travel to the office, the scope for further studies and improvement of knowledge. With increased holidays, people may travel more and this will boost the economy.
Indian Banks’ Association (IBA) and bank unions signed a memorandum of understanding (MoU) in December last year, unions had urged implementation of a five-day work week within 180 days just like government offices, RBI offices and Life Insurance Corporation of India who work five days a week. The Reserve Bank of India (RBI) serves as India’s central banking institution and plays a critical role in regulating and supervising the country’s financial system. The RBI’s regulation of banking hours is fundamental to maintaining a balance between efficient banking services and the welfare of bank employees.
The role of the government in this transition is pivotal. The proposal requires a nod from the Central Government and discussions with the RBI, which regulates banking hours and interbank operations. Banks on the other hand have been instrumental in India’s economic stability since the pandemic and are waiting for a final stamp of approval on the 5-day workweek.
