The Indian Bank Association (IBA) has formally proposed a significant change in the banking system, advocating for a five-day working week and designating Saturday as a public holiday. The proposal, submitted to the Department of Financial Supervision, Ministry of Finance, in December 2023, awaits formal approval and consideration.
Background and Rationale
The demand for a revised working schedule stems from the evolving working conditions and increased stress levels within the banking sector. The advent of automation has transformed banks into 24/7 service providers, prompting officials to reassess the traditional six-day operational model.
Historical Perspective and 2015 Reform
Until 2015, Indian banks operated six days a week, from Monday to Saturday. However, a significant reform introduced in 2015, under the 10th Bipartite Settlement signed by the Reserve Bank of India (RBI), allowed banks to observe two additional holidays on two Saturdays each month. Presently, all public and private banks in India adhere to a mandatory public holiday on the second and fourth Saturdays of the month.
Current Status and Approval Process
While the proposal for a five-day banking plan has received approval from Bhagwat Karad, Minister of State of Finance, the ultimate decision rests with the Ministry of Finance. Once approved at this level, the proposal will be forwarded to the Reserve Bank of India for further consideration.
It is crucial to note that as of now, there is no official announcement regarding the implementation of the five-day banking plan. The proposal is pending approval at higher levels, and any potential changes will be subject to thorough evaluation.
