Banks may soon get a five-day week as panel begins key talks today: Report

The Indian Banks' Association set up the high-level committee on Tuesday, shortly after bank unions called off a three-day strike amid continuing negotiations.At present, banks remain closed on the second and fourth Saturdays of every month.New Delhi,Sep 30, 2026 13:54 ISTThe proposal to introduce a five-day banking week is set to move to the next stage, with a high-level committee holding its first meeting today. The panel is expected to finalise its report quickly, after which the Reserve Bank of India (RBI) and the finance ministry will decide on the next steps, according to Business Today.CH Venkatachalam, General Secretary of the All India Bank Employees’ Association (AIBEA), said the committee would focus on the implementation of a five-day banking week. Once it submits its recommendations, the RBI and finance ministry will have to take the proposal forward and make the required legislative changes.The committee will only deal with the five-day banking week proposal. Discussions on other demands, including performance-linked incentives, better pensions and improved working conditions, will be held separately as these issues are outside the panel’s mandate.AIBEA is one of the seven unions that make up the United Forum of Bank Unions (UFBU). The Indian Banks’ Association (IBA) set up the high-level committee on Tuesday, shortly after bank unions called off a three-day strike amid continuing negotiations. The panel has been formed specifically to discuss the implementation of a five-day banking week.It includes senior representatives from the IBA and UFBU, along with BKSM General Secretary Vinod Nikam. Bank of India MD and CEO Rajneesh Karnatak will chair the committee, while Punjab National Bank MD and CEO Ashok Chandra will act as the alternate chairman. The report mentioned that the panel is expected to examine how employees can be given a five-day work week while banks continue to remain open on two Saturdays each month.The proposal is aimed at allowing employees to work five days a week without affecting customers' access to banking services.Bank unions have been demanding a Monday-to-Friday work schedule for a long time. They have argued that bank employees already work extended hours. They have also pointed out that the RBI and the Department of Financial Services follow a five-day work week.At present, banks remain closed on the second and fourth Saturdays of every month.The five-day banking week proposal has been under discussion for more than two years. Bank unions have maintained that the 12th bipartite settlement included a formal commitment to implement a five-day work week.The committee's recommendation will now determine the next stage of the proposal, with the RBI and finance ministry expected to take it forward after the report is submitted.- Ends