Can Bank Employees Expect a 5-Day Workweek From FY26?

The Union Finance Ministry has indicated that the proposed policy for a 5-day banking week will not be implemented in FY26 (2025-26), citing concerns over potential disruptions to banking operations. News reports suggest that while discussions with the Indian Banking Association (IBA) continue, the initiative is unlikely to be implemented this year.

Challenges with the 5-Day Week Policy

As per news reports, implementing a 5-day banking week could negatively impact banking services, particularly on Saturdays. Saturdays are critical for many customers to complete their banking transactions, despite the growing popularity of digital banking.

Banking Sector’s Struggles and Unions’ Demands

This decision comes amid current challenges within the banking sector, such as difficulties in acquiring and retaining deposits. The banking industry continues to rely on physical presence, including door-to-door campaigns, to maintain growth..

In December 2023, a memorandum of understanding was signed between the unions and the IBA, calling for Saturdays to be made a holiday under the Negotiable Instruments Act. The IBA recommended this change to the government, which is now awaiting approval from the Reserve Bank of India (RBI) and the Centre.

In March 2024, the All India Bank Officers’ Confederation (AIBOC) raised concerns, urging the IBA to implement this policy. Furthermore, unions representing bank employees have long advocated for the 5-day work week.

Workforce Shifts in the Banking Industry

The demand for a 5-day work week coincides with the ongoing shift in staffing patterns in the banking sector.

Over the past decade, public sector banks (PSBs) have drastically reduced their workforce. Official data shows that the number of clerks in PSBs has fallen from 398,801 in 2013 to 246,965 in 2024, a reduction of 151,836 employees. Similarly, the number of sub-staff members has dropped from 153,628 in 2013 to 94,348 in 2024.

In total, PSBs have seen a reduction of 139,811 employees during this period.

In contrast, private sector banks have significantly increased their staff numbers. From 229,124 employees in 2013, private sector banks now employ 846,530 individuals in 2024, marking an increase of 617,406 employees.

Conclusion

The proposed 5-day banking week faces delays due to potential service disruptions and concerns over staffing challenges in public sector banks. As the banking sector continues to evolve, these discussions remain critical to shaping the future of banking operations in India.

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