The Indian Banks Association (IBA) has recently brokered a deal with the All India Bank Officers' Confederation, potentially paving the way for bank employees to enjoy a five-day work week. Pending government approval, banks could see a shift towards closure on both Saturdays and Sundays. Presently, banks follow a schedule where they are operational on the first and third Saturdays of the month, while the second and fourth Saturdays are designated as non-working days.
Outlined in the 9th Joint Note, signed on March 8, 2024, this arrangement marks a significant departure from the existing practice by designating all Saturdays as holidays once the government gives its formal endorsement. A press release accompanying the agreement noted that the revised working hours would take effect following the government's notification.
Such a transition might pose adjustments for customers accustomed to banking services on Saturdays. Nevertheless, alternative banking channels such as mobile banking, ATMs, and Internet banking will remain accessible to meet customers' needs.
Moreover, the agreement encompasses a substantial 17 percent annual salary hike for bank employees, translating to an estimated additional sum of around Rs 8,284 crore for workers in the public sector banking sphere. This salary increment, effective from November 2022, is anticipated to benefit roughly 8 lakh bank employees across the country.
While the precise adjustments to working hours are yet to be finalized, initial reports suggest a potential extension of the workday by 40 minutes, spanning from 9:45 am to 5:30 pm.
It's worth noting that while the agreement primarily focuses on workweek alterations and salary enhancements, government approval holds paramount importance, especially given its ownership of public sector banks. Additionally, the approval of the Reserve Bank of India (RBI) is also crucial, considering its pivotal role in determining the timing of various interbank activities.
If greenlit, the transition to a five-day work week could usher in significant changes for both bank employees and customers, alongside the anticipated salary increments for those within the banking sector.
