Government never agreed to 5-day work week for banks, facts being twisted: Official sources

The finance ministry, through an anonymous senior official, stated that no agreement was reached on a five‑day banking week during the latest wage negotiations, dismissing union assertions that such a decision had been signed in March 2024. The comment comes as the United Forum of Bank Unions (UFBU) prepares a three‑day strike from September 28 to 30, demanding the change among other concessions.

The strike will coincide with a non‑working Saturday on September 26, meaning banks would otherwise be closed for five consecutive days. To mitigate disruption, the Ministry of Finance announced that public sector and regional rural banks will operate as usual on Sunday, September 27, and the Reserve Bank of India has approved full functionality of all branches, ATMs and currency chests on that day. Union documents cite an 11% wage ceiling initially proposed by the Indian Banks’ Association (IBA), which was later raised to 17% after government intervention, and note that a performance‑linked incentive (PLI) scheme introduced in November 2024 for Scale 4 officers and above remains on hold.

Bank unions argue that the five‑day work week, currently limited to first, third and fifth Saturdays each month, is a core demand, while the government maintains the proposal is still under consideration. The dispute affects millions of bank employees and the broader public who rely on banking services, raising concerns about service continuity and labor‑management relations in the sector.