Archive · 29 Sep 2026
IBA Forms Panel to Discuss Five-Day Banking Week Demand
Bank unions want banks to close on Saturdays so employees can work five days a week.
The Indian Banks’ Association and the unions have created a committee to discuss this request.
Bank leaders and representatives from seven unions will be on the committee.
Another union leader will attend as an invitee.
The group will study different plans and consider how customers might be affected.
One proposal would add 40 minutes to each working day from Monday through Friday.
The unions postponed a planned three-day strike while talks continue.
No final decision or starting date for five-day banking has been announced.
The Indian Banks’ Association and United Forum of Bank Unions formed a committee to discuss implementing a five-day banking week.
Bank of India chief Rajneesh Karnatak will chair the panel, with Punjab National Bank chief Ashok Chandra as alternate chairman.
Seven UFBU-affiliated union general secretaries will join the committee, while Bank Karmachari Sena Mahasangh leader Vinod Nikam will be an invitee.
The panel will examine Saturday holidays, possible alternatives, stakeholder concerns and longer weekday working hours, including a proposed 40-minute increase.
UFBU deferred its planned September 28–30 strike, but disputes over performance-linked incentives and other service issues remain unresolved.
- Who
- The Indian Banks’ Association, the United Forum of Bank Unions and representatives of participating banks and unions.
- What
- A high-level committee has been formed to discuss five-day banking, Saturday holidays and related union demands.
- When
- The committee was announced on September 29, following an IBA-UFBU meeting on September 27; the proposed strike was scheduled for September 28–30.
- Where
- The discussions concern banks and bank unions in India.
- Why
- To examine implementation options, consult stakeholders and seek a solution acceptable to banks, unions and customers.
Bank Unions
IBA and Government Process
Five-day banking
Bank Unions
UFBU-affiliated unions are seeking Saturday holidays and say the proposal was included in the March 8, 2024, bipartite settlement and joint note.
IBA and Government Process
The IBA has created a formal committee to examine implementation, alternatives and stakeholder concerns, but its communication does not announce final approval or an implementation date.
Performance-linked incentives
Bank Unions
The unions object to the framework for Scale IV and above officers, arguing that incentives should be tied to overall bank performance and applied more uniformly across employee and officer groups.
IBA and Government Process
The reported government framework would allow Scale IV and above officers to receive incentives of up to 365 days of basic pay based on individual performance, while workmen and officers up to Scale III would receive up to 15 days of basic pay plus dearness allowance.
Status of the incentive scheme
Bank Unions
UFBU alleges that implementing the Department of Financial Services scheme during conciliation proceedings violates status-quo obligations and says the issue is also before the Delhi High Court.
IBA and Government Process
The articles report differing developments: one says the revised framework was kept in abeyance, while another says DFS advised implementation and that incentive payments had begun.
- Committee chair
- Rajneesh Karnatak, managing director and chief executive officer of Bank of India.
- Alternate chair
- Ashok Chandra, managing director and chief executive officer of Punjab National Bank.
- IBA representatives
- Binod Kumar of Indian Bank, Rakesh Sharma of IDBI Bank and G.S. Rana of State Bank of India, in addition to the chair and alternate chair.
- UFBU representatives
- General secretaries of AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBOC and INBEF.
- Main proposal
- Declare the remaining Saturdays as holidays, potentially adding 40 minutes to each working day from Monday through Friday.
- Strike status
- UFBU deferred its proposed three-day nationwide strike scheduled for September 28–30.
- Related disputes
- Unions have raised concerns about performance-linked incentives, pension updates, dearness allowance and other service issues.
