Demand for 5 days of work at banks hits speed bumps, likely to take time

A five-day-work week for banks is being planned but there is a lot to consider before any announcement is made. While there is an in-principle agreement between the Indian Banks' Association (IBA) and public sector banks (PSBs) unions, several other issues will have to be resolved among PSBs, cooperative banks, and private banks.

IBA and the United Forum of Bank Unions have conducted negotiations, however, a final proposal has not yet been sent to the Ministry of Finance. 

In order to come to a conclusion, discussions with the Reserve Bank of India and the private sector will also be required. In addition to that, rural and cooperative banks will have to be taken on board before the government issues a notification regarding a five-day working week, an expert told The Financial Express (FE).

It is imperative for the banks to ensure that there is no delay in cheque clearing and other bank functions due to the change. Moreover, public sector banks will have to see that their business is not affected in case private banks decide to work on Saturdays, the expert said.

Apart from Sundays, banks are closed on the second and fourth Saturdays of every month. Banks unions of public sector banks have been demanding a five-day week for a long time. Further, bankers argued that there is confusion among the common public about which Saturdays banks are closed.

If this change is approved, in accordance with Section 25 of the Negotiable Instruments Act, the government will need to release a notification declaring all Saturdays as holidays. However, there is little clarity about the time it will take to bring about the change.

With the change in place, working hours for banks would be increased by 40 minutes per day to ensure there is no loss of work. Currently, banks open at 10 am and close at 5 pm. After the change, banks would function from 9:40 am to 5:20 pm for five days a week.