Five-day banking week: Saturday holiday Gazette goes viral; here’s the truth

A Gazette notification circulating on social media, purportedly issued by the Ministry of Finance’s Department of Financial Services, claims that the central government has declared every Saturday a public holiday for all public sector banks, including State Bank of India (SBI).

However, no such notification has been issued by the Finance Ministry declaring all Saturdays as holidays for public sector banks. The proposal for a five-day banking week is still under discussion.

Bank strike deferred after IBA assurance

The development comes after bank unions late on Sunday deferred their proposed three-day nationwide strike following an assurance from the Indian Banks’ Association (IBA) on their demands, including a five-day banking week.

The strike, called by the United Forum of Bank Unions (UFBU), was scheduled to begin on Monday and coincided with the half-yearly closing of banks. With the strike postponed, banks will function on Monday.

The UFBU said a high-level committee comprising representatives of the IBA and UFBU would be formed immediately to deliberate on the demand to declare the remaining Saturdays as holidays.

“A high-level committee of the IBA and UFBU will be formed immediately to deliberate on the issue of declaring the remaining Saturdays as holidays. This committee will explore all possible alternatives, discuss with all the stakeholders, and work out a solution acceptable to all the stakeholders, more importantly, the customers,” the UFBU said in a statement.

Banks currently closed on second and fourth Saturdays

At present, banks remain closed on the second and fourth Saturdays of every month. Other Saturdays are working days, subject to applicable bank holidays.

Bank unions have been demanding a Monday-to-Friday work schedule for several years. They have argued that bank employees already work extended hours and have pointed out that the Reserve Bank of India (RBI) and the Department of Financial Services follow a five-day work week.

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.

Pension benefits among other union demands

Besides the five-day banking week, unions are seeking resolution of several other issues, including the updation and improvement of pension benefits, a uniform dearness allowance formula for all pensioners, and an option for employees covered under the National Pension System (NPS) to switch to the Old Pension Scheme (OPS).

The formation of the IBA-UFBU committee is expected to determine the next stage of the five-day banking week proposal. The RBI and the Finance Ministry are expected to consider the matter after the committee submits its recommendations.