Trending News on 5 Day Banking news in India – RBI Gives Node, Update, Parliament News, Approval, Status

Ranjay Kumar

5 Day Banking news
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The unions have rightly advocated for a 5 Day Banking news in India, considering the working conditions, rising stress levels, and the increasing number of workdays globally. Additionally, the growth of automation and the availability of banking services 24/7 via wireless phones, laptops, and specialized eTablets further support this change.

In a press release, the All India Bank Officers’ Confederation announced that negotiations between the Association of Indian Banks and the Confederation of All India Bank Officers were successfully concluded. This resulted in the signing of the 9th Joint Memorandum on March 8, 2024. The press release stated, “The Joint Note will recognize all Saturdays as holidays until the government announces otherwise. The changed working hours will take effect following the government’s announcement.

What is 5 Day Banking?

The term “5 Day Banking” refers to banks operating five days a week, typically from Monday to Friday. The Indian Banking Association (IBA), which represents various banking groups in India including public and private sector banks, foreign banks, cooperative banks, regional rural banks, and all Indian financial institutions, has proposed this model. The proposal aims to align the Indian banking sector with global standards on work-life balance, particularly within public sector banks.

5 Day Banking news in India Parliament

Minister of State for Finance, Bhagwat Karad, stated in Parliament that the IBA’s proposal for 5 Day Banking had been received. However, he did not provide details on the proposal’s status or whether the Finance Ministry is considering its acceptance. Currently, banks in India are closed on the second and fourth Saturdays of each month. If the 5-day work week proposal is approved, bank employees’ work hours and customer service hours are expected to increase.

The IBA has submitted a proposal to declare all Saturdays as a banking holiday. This follows the 10th Bipartite Settlement and the 7th Joint Note signed between the IBA and Workmen Unions/Officer Associations. The government, under the powers conferred by Section 25 of the Negotiable Instruments Act, 1881, had declared the second and fourth Saturdays of each month as public holidays for banks in India, effective from a notification dated August 20, 2015.

What are the Working Days of Banks in India?

Traditionally, Indian banks operated on a six-day work week. However, as part of the 10th Bilateral Reform with the RBI in 2015, banks were permitted to offer two additional holidays on two Saturdays each month. Currently, all public and private banks in India observe a mandatory holiday on the second and fourth Saturdays of every month, while they remain open on the first, third, and fifth Saturdays.

Has 5 Day Banking Been Implemented in India?

In India, public sector banks are typically closed on the second and fourth Saturdays, which can confuse clients making travel plans. Recently, there have been rumors about a potential shift to a five-day workweek for banks. However, no formal confirmation has been made regarding this change. Presently, banks continue to operate according to the regular schedule, observing holidays on the second and fourth Saturdays as well as Sundays.

When will 5 Day Banking start in India?

Strikingly, banks in India have given their employees official leave on the second and fourth Saturdays of each month since 2015. This change took effect after the government implemented a rule under the 10th Bipartite Settlement, signed with the RBI, which requires all Indian banks to provide two additional Saturday holidays per month. This rule applies to all public and private banks in the country. Currently, banks operate on the first, third, and fifth Saturdays of the month and remain closed on the other two.

While the proposal for 5 day banking has been presented, the minister has not clarified whether it has been accepted or will be considered soon. According to the Times of India in October of this year, if the changes are implemented, it may increase the number of hours employees work during the week. This would mean employees would work five days a week but would need to extend their working hours by 40 minutes each day.

5 Day Banking news

Current Status of the 5 Day Workweek and Expectations

An agreement has been signed between the Indian Banks’ Association (IBA) and the bank unions. This agreement, finalized on March 8, 2024, under the 9th Joint Note, proposes transitioning to a 5-day work week. However, implementing this new schedule hinges on the approval of the Central Government. Bank employees are hopeful that this approval will come by the end of 2024 or early 2025.

Government and RBI Oversight

The role of the government in this transition is pivotal. The proposal requires approval from the Central Government and discussions with the Reserve Bank of India (RBI), which regulates banking hours and interbank operations. If approved, Saturdays will be officially recognized as holidays under Section 25 of the Negotiable Instruments Act, cementing the change legally and operationally across the banking sector.

Implications for Working Hours

To accommodate the shortened work week, the proposed changes include extending daily working hours by 40 minutes. Currently, bank employees work from 9:45 AM to 5:30 PM. This adjustment ensures that reducing the number of working days does not adversely impact customer service hours, maintaining service delivery while improving employee work-life balance.

Awaiting Official Confirmation

As anticipation builds among bank employees and industry stakeholders, the official confirmation and implementation details are eagerly awaited. This change is expected to boost the morale of the banking workforce and set a precedent for other sectors in India, promoting a more balanced approach to work and life.

Regulation of Banking Hours by the Reserve Bank of India

The Reserve Bank of India (RBI), as India’s central banking institution, plays a critical role in regulating and supervising the country’s financial system. Part of its mandate includes overseeing banking operations, which encompasses the regulation of banking hours.

Setting Standards for Banking Operations

The RBI establishes standard guidelines for banking hours across the country. These guidelines ensure that banks operate within a consistent and efficient framework, meeting the economy’s needs while also considering customer convenience.

Regulatory Framework and Guidelines

While specific banking hours may vary slightly from bank to bank, they generally need to align with the broad regulations set by the RBI. For instance, the RBI mandates certain minimum working and customer service hours that banks must adhere to. The RBI can modify these hours as necessary based on economic conditions, public banking habits, and technological advancements.

Role in Special Situations

The RBI plays a pivotal role during special circumstances such as financial crises, demonetization, or the recent pandemic. It can issue directives to modify banking hours to manage these situations effectively. For example, during the COVID-19 pandemic, the RBI allowed banks to reduce working hours and urged the public to use digital banking facilities to minimize physical contact.

Implementation of Changes in Banking Hours

When changes like the proposed transition to a 5-day work week are considered, the RBI’s input is crucial as it regulates the hours and operational aspects to ensure banks meet their obligations to customers without disruption. Any changes proposed by bank unions and the Indian Banks’ Association (IBA) must be discussed with and approved by the RBI to ensure alignment with the overall regulatory framework and maintain the stability of the banking system.

The RBI’s regulation of banking hours is essential to balancing efficient banking services and the welfare of bank employees. Through its guidelines and directives, the RBI ensures that banks operate effectively within the country’s broader economic policy framework while adapting to evolving circumstances and technological advances.

When Bank Employees Get Salary Hike?

Following the agreement between the IBA and the All India Bank Officers Confederation, the implementation now awaits the Centre’s approval. Once the government grants its approval, banks could be closed on both Saturdays and Sundays. Currently, banks are operational on the first and third Saturdays of the month and remain closed on the second and fourth Saturdays.

The 9th Joint Note, signed on March 8, 2024, between the IBA and the All India Bank Officers Confederation, outlines changes that will designate all Saturdays as holidays upon government approval.

“The Joint Note recognises all Saturdays as holidays, pending government notification. The revised working hours will be effective after notification by the government,” the joint statement said.

Salary Hike For Bank Employees

In addition, the agreement between the IBA and the All India Bank Officers Confederation includes a 17 percent annual salary increase, amounting to approximately Rs 8,284 crore extra for public sector bank employees.

The exact adjustments to the bank employees’ work schedule have not been finalized yet. However, reports suggest a potential extension of the work day by 40 minutes, from 9:45 am to 5:30 pm.

Once approved by the Centre, the transition to a five-day workweek could bring changes for both bank employees and customers, along with the salary increase for those in the sector.

Frequently Asked Questions

What is the current status of the 5 Day Banking news proposal in India?

The proposal for 5 Day Banking news is still under consideration and awaiting final approval from the Centre. Reports indicate that the RBI has given its nod, but the exact implementation timeline is yet to be determined.

Has the RBI approved the 5 Day Banking news?

Yes, the RBI has given its nod to the 5 Day Banking news proposal. However, the final implementation depends on further approvals and procedural steps.

What are the proposed new working hours for bank employees?

The proposed working hours for bank employees are expected to extend by 40 minutes, potentially making the workday from 9:45 am to 5:30 pm.

How will the 5 Day Banking news impact customers?

Customers will experience changes in banking hours and availability, with banks being closed on Saturdays. This may require adjustments in their banking schedules.

When is the 5 Day Banking news expected to be implemented?

The exact implementation date has not been finalized. It is contingent on further approvals and procedural steps, including approval by the Centre.

Will the 5 Day Banking news apply to all banks in India?

While the proposal is primarily aimed at public sector banks, it is anticipated that private sector banks might also adopt the 5-day work week once it is officially implemented.

What are the financial implications of the 5 Day Banking news for bank employees?

In addition to the 5 Day Banking news, bank employees are expected to receive a 17 percent annual salary increase, amounting to approximately Rs 8,284 crore extra for public sector bank employees.

What steps are required for the 5 Day Banking news proposal to be fully approved?

The proposal requires approval from various regulatory bodies, including the Centre and Parliament. Once all approvals are obtained, the implementation process can begin.

Are there any potential drawbacks to the 5 Day Banking news?

Potential drawbacks include reduced banking days for customers, which may necessitate adjustments in their banking habits. Additionally, there could be initial operational challenges during the transition period.

Where can I find updates on the status of the 5 Day Banking news proposal?

Updates on the status of the 5 day banking proposal can be found in official RBI announcements, government notifications, and reputable news sources covering financial and parliamentary news in India.


The proposal for a 5 Day Banking Week in India has sparked significant interest and discussion across the financial sector and among the public. Recently, the Reserve Bank of India (RBI) has given its nod to the proposal, marking a crucial step towards its potential implementation. This move is aimed at modernizing banking operations and aligning them with international standards while improving work-life balance for bank employees.

However, the final approval and implementation timeline are still pending, pending clearance from the Centre and relevant regulatory bodies. The proposal includes extending the workday by 40 minutes and providing a 17 percent annual salary increase for public sector bank employees, amounting to approximately Rs 8,284 crore. This financial incentive aims to compensate for the potential adjustment in work hours.

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