India’s public sector banks currently operate six days a week on average: full days Monday–Friday, with the second and fourth Saturdays as holidays (per rules since 2015). The demand is to make all Saturdays holidays, creating a consistent five-day week. This was agreed in principle in the 12th Bipartite Settlement / 9th Joint Note signed on March 8, 2024, between the Indian Banks’ Association (IBA) and unions like UFBU and AIBOC. The IBA formally recommended it to the government, but implementation requires final approval from the Ministry of Finance and Reserve Bank of India (RBI).Unions cite staff shortages, burnout, stress, and the rise of digital banking (UPI, apps handling most transactions) as reasons the current system is outdated and unsustainable.
Why the Issue Exists:
- Chronic Understaffing and Workload: Public sector banks face retirements without fast replacements; unions report high stress from extended hours and digital support duties.
- Work-Life Imbalance: Bankers compare themselves to other sectors (including many government offices) that enjoy five-day weeks, arguing for equitable treatment.
- Digital Shift: With fewer physical visits, unions say weekend closures won’t disrupt services—ATMs and online channels handle essentials.
- Pending Since 2015: Demands date back years, but the 2024 agreement raised expectations—yet no notification has followed, fueling agitation.
Proposed Solution
Unions demand immediate government notification to declare all Saturdays holidays under the Negotiable Instruments Act. To offset weekly hours, daily timings might extend slightly (e.g., ~40 minutes extra Monday–Friday), but customer hours would stay similar. Benefits include better morale, productivity, fewer errors, and alignment with global/digital norms. Unions have escalated: signature drives, memorandums to IBA/Finance Ministry (December 2025), protests, and a planned nationwide strike on January 27, 2026.
Government Stand: Under Consideration, No Timeline, Unlikely in FY26The government’s position remains cautious and non-committal:
- In a July 28, 2025 Lok Sabha reply (to MP K.C. Venugopal), the Ministry of Finance confirmed the IBA’s proposal is “under consideration.” It denied staff shortages as the delay reason, noting ~96% staffing in public sector banks (as of March 2025).
- In April 2025, the ministry indicated the change was “unlikely” in FY 2025–26 (ending March 2026).
- No final notification or approval has been issued. Earlier conciliations (e.g., March 2025 with Chief Labour Commissioner) led to assurances of “due consideration” and monitoring, but unions report no progress despite follow-ups.
- Some reports suggest potential implementation from April 2026 (new financial year), but this is speculative—no official commitment exists.
- The government emphasizes consultations with IBA, RBI, and stakeholders to avoid disruptions, while unions argue digital infrastructure makes concerns overstated.
Public sector banks manage staffing independently, and the ministry has pushed back on manpower shortage claims.
(References: Lok Sabha reply July 28, 2025; News18/Business Standard reports 2025; UFBU/AIBOC statements; recent X posts under #Implement5DayBanking.)
