Five-Day Banking Week: The Indian Banks’ Association (IBA) has formed a high-level committee with bank unions to discuss the long-pending demand for a five-day banking week. The development comes after the proposed three-day nationwide bank strike from September 28 to 30 was deferred following talks between the two sides.
According to an IBA communication dated September 29, the committee was formed after a meeting between the IBA Negotiating Committee and the United Forum of Bank Unions (UFBU) on September 27. It will include senior bank officials as well as representatives of the unions.
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Who is On the Committee?
Bank of India MD and CEO Rajneesh Karnatak has been appointed chairman, while Punjab National Bank MD and CEO Ashok Chandra will be the alternate chairman.
The other IBA representatives include Indian Bank MD and CEO Binod Kumar, IDBI Bank MD and CEO Rakesh Sharma and State Bank of India’s G S Rana.
The UFBU side includes AIBEA General Secretary C H Venkatachalam, AIBOC General Secretary Rupam Roy, NCBE General Secretary L Chandrasekhar, AIBOA General Secretary Sanjay Khan, BEFI General Secretary Debasish B Choudhary, INBOC General Secretary Prem Makkar and INBEF General Secretary O P Sharma. BKSM General Secretary Vinod Nikam has also been included as an invitee.
What will the Committee Discuss?
The main issue will be the demand to declare all Saturdays as bank holidays. At present, bank branches are generally closed on Sundays and the second and fourth Saturdays of each month. Unions want the remaining Saturdays to also become holidays, creating a five-day working week.
The proposal has been under discussion for years. In December 2023, the IBA agreed to recommend a five-day banking week to the government. The proposal was later included in the 12th Bipartite Settlement and 9th Joint Note signed on March 8, 2024. However, government approval and other clearances are still required before any change can take effect.
The new committee will also examine possible alternatives and consult stakeholders, including customers, before working towards a solution.
Importantly, forming the committee does not mean five-day banking has been approved. The existing Saturday working arrangement remains in place for now.
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Why Was The Bank Strike Deferred?
The UFBU had planned the September 28-30 strike over several unresolved issues. Along with five-day banking, unions have raised concerns about the performance-linked incentive (PLI) scheme and other matters connected with the March 2024 settlement.
The two sides agreed to continue discussions instead. The PLI issue for Scale IV and above officers will also be discussed with government participation, while other pending issues will be taken up separately.
The latest development therefore moves the dispute from immediate strike action to formal negotiations. The final decision on five-day banking will depend on the committee’s discussions and the approvals required from the government and other authorities.
