Bank unions renew demand for five-day workweek as government clearance remains pending

Bank employees’ unions have renewed their demand for a full five-day workweek, pressing the Centre to clear a proposal that has remained pending despite in-principle agreement from the Indian Banks’ Association (IBA). The government has maintained that the matter is still under consideration.

Unions such as the All India Bank Officers’ Confederation (AIBOC) and the United Forum of Bank Unions (UFBU) have launched a social media campaign, #5DayBankingNow , sharing protest photographs and tagging Finance Minister Nirmala Sitharaman. The renewed push follows the wage settlement signed in March 2024, in which the IBA agreed to a five-day workweek for bank employees, subject to government approval. Nearly two years later, that clearance has yet to be granted.

The unions argue that the demand is both feasible and long overdue, citing the sector’s strong financial performance and rapid digitalisation. Public sector banks reported record profits of about ₹1.78 lakh crore in FY 2024–25, while digital channels accounted for nearly 99.8 per cent of all banking transactions by mid-2025. According to employee representatives, services such as UPI, mobile and internet banking, and 24×7 ATMs have significantly reduced dependence on branch-based transactions, making routine Saturday operations largely redundant.

Nationwide demonstrations were held on December 30, 2025, as unions warned of intensified agitation, including strike action, if the delay continues. The government has said discussions with stakeholders are ongoing, reiterating that the proposal remains under active consideration.

Supporters of the move also point to international practices, noting that banks in countries such as the United States, the United Kingdom, Canada, Australia and much of Europe operate on a Monday-to-Friday schedule, relying on digital platforms and limited branch hours. In several Asian economies, including Singapore and Japan, banks largely follow a five-day workweek, supplemented by online services and select extended-hour branches.

Union leaders contend that a five-day schedule would improve work-life balance, reduce staff burnout and help retain talent, without affecting productivity, as core banking systems already function round the clock. They also argue that improved employee well-being would ultimately enhance customer service.

However, concerns remain about the impact on customers, particularly in rural and semi-urban areas where reliance on physical branches is still high. Critics warn that fewer working days could lead to crowding on weekdays and inconvenience for customers with limited digital access, unless accompanied by better staffing, infrastructure and outreach.

As talks continue, the issue underscores the broader challenge facing India’s banking sector adapting to digital transformation while ensuring accessibility, operational efficiency and employee welfare.