Banks To Remain Shut Every Saturday? IBA Likely To Approve 5-Day Work Week: Report

The Reserve Bank of India will also need to approve the proposal for banks to remain closed every Saturday as it decides the timing of most interbank activities

Indian Banks’ Association (IBA) association has agreed in principle to a five-day week in exchange for longer hours

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It is likely that banks will remain closed every Saturday as the talks between the Indian Banks’ Association (IBA) and the United Forum of Bank Employees are moving in a positive direction.

The long pending demand of a five-day working week for bank employees may soon turn into a reality, with the association agreeing in principle for a five-day week in exchange for longer hours, reported the publication Times of India.

In such a scenario, the government will have to notify all Saturdays as holidays under section 25 of the Negotiable Instruments Act, the report quoted S Nagarajan, general secretary, of All India Bank Officers’ Association as saying.

Nagarajan added the deal was outside the wage talks as it was long pending. The RBI will also need to approve the proposal as it decides the timing of most interbank activities.

How will it affect bank employees?

Employees will work 40 minutes more to compensate for the loss of hours due to the Saturday holiday.

Employees will have to work daily from 9:45am to 5:30 pm.

They will get a holiday on Saturdays and Sundays. At present, bank employees work on alternate Saturdays.

The proposal comes amid stock markets planning to raise trading to align with the Western markets. Bank unions' demands have been intensified after LIC accepted a five-day week proposal ahead of its listing.

This month banks will be closed for 12  days, including the second and fourth Saturdays and all Sundays.  So, if you have any bank-related work coming up next month, then make sure that you go through the list of holidays in March to avoid any inconvenience.

Even though banks will remain shut in the following days but individuals will not face any problems related to bank work as ATMs, cash deposits, online banking, and mobile banking will services continue to function.