Decision on 5 day banking will be taken on 28 July 2023

 Banks in India may soon operate only five days a week, with two proposed weekly offs, and a decision regarding this will be made on July 28. The Indian Banking Association (IBA) is expected to discuss and finalize this matter in a meeting with the United Forum of Bank Unions (UFBU) on the coming Friday, as per a report.

The UFBU had previously raised the issue of introducing a five-day work week in their discussions. The IBA has informed them that the matter is actively being considered by all stakeholders and is being pursued. The UFBU has requested the IBA to expedite the process for the introduction of a five-day banking week without any further delay.

During the meeting scheduled for July 28, the IBA and UFBU will also discuss other matters, including salary hikes and the requirement of group medical insurance policies for retirees.

At present, banks in India operate on two Saturdays per month, the first and third Saturdays. The UFBU has demanded that banks should only work five days a week, with employees getting two days off each week.

The demand for a five-day work week gained attention after the government implemented this rule in the Life Insurance Corporation of India (LIC).

The Finance ministry of India has expressed no objection to the UFBU’s demand for a five-day work week for bank employees. The Indian Banking Association had sent a proposal to the government, suggesting an increase of 40 minutes in the daily working time for bank employees.

Regarding medical insurance for retired bank employees, the UFBU has agreed to provide a base policy of ₹2 lakh with certain limits on bed charges and package treatments to reduce the premium amount. Additionally, they will offer an optional top-up scheme up to ₹10 lakh.