No banking on Saturdays? 5-day work week for banks approved by IBA; from when it is applicable
The All India Bank Officers' Confederation stated in a press statement that discussions between the Indian Banks Association and the All India Bank Officers' Confederation had been successfully concluded, culminating in the signing of the 9th Joint Note on March 8, 2024.
According to the press release, “The Joint Note recognizes all Saturdays as holidays, pending government notification. The revised working hours will be effective after notification by the government.”
They have also agreed on a 17 percent annual salary raise, resulting in an additional yearly outlay of around Rs 8,284 crore for public sector banks. The salary boost, which will take effect in November 2022, is expected to benefit up to 8 lakh bank workers.
Also read: Banks to be open for only 5 days a week? Finance ministry receives IBA proposal
When will this be applicable from?
It will be applicable when the government approves of the same. If it is approved all Saturdays will be notified as holidays under Section 25 of the Negotiable Instruments Act.
According to Times of India news report from 2023, “According to section 25 of the Negotiable Instruments Act, the government will be required to declare every Saturday a holiday. The agreement had been in place for a while, it was not subject to the wage negotiations. The government has a say because it owns the public sector banks. The RBI must also accept the plan because it determines the timing of most interbank activities.
Also read: Proposal for 5-day work week for banks: No banking on
