Budget 2024: Bank employees in India might soon experience a significant shift in their work schedule, as the government considers implementing a five-day work week. This potential change comes as part of the upcoming budget session and is pending approval. The move, if approved, could see bank employees enjoying two days off per week by the end of the year.
Current and Proposed Changes
Currently, banks in India close on all Sundays and the second and fourth Saturdays of each month. The new proposal, resulting from an agreement between the Indian Banks’ Association (IBA) and employee unions, aims to offer two full days off each week. This agreement, while promising, still requires government confirmation, expected to coincide with the budget announcement.
A landmark Memorandum of Understanding (MoU) was signed in December 2023, involving the IBA, government bodies, private banks, and unions. This MoU laid the groundwork for the proposed five-day work week. The terms were further formalized on March 8, 2024, in the 9th Joint Note, which designated Saturdays and Sundays as holidays under the new schedule.
Regulatory Adjustments and Implementation
The transition to a five-day work week will require regulatory adjustments, currently under discussion with the Reserve Bank of India (RBI). These adjustments are necessary to implement the revised banking hours. Anticipated government notifications by year-end or early 2025 could officially recognize Saturdays as holidays under Section 25 of the Negotiable Instruments Act.
Impact on Banking Hours
If the proposal is approved, daily banking hours might extend by 40 minutes, changing the operation hours to 9:45 AM to 5:30 PM. This extension aims to maintain operational efficiency despite the reduced number of working days.
The Bank Employees Forum has reassured stakeholders that customer service will remain unaffected by the proposed changes. Bank unions have been advocating for all weekends off since 2015, initially laid out in a bilateral agreement between RBI, the government, and IBA.
The government’s decision on this matter is eagerly awaited by bank employees and unions alike. The approval and subsequent implementation of a five-day work week could mark a significant milestone in improving the work-life balance of bank employees across India.
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