The Indian Banks' Association (IBA) has formed a high-level committee to formally discuss the long-standing demand for a five-day work week for bank employees. This development comes after bank unions recently postponed a proposed three-day nationwide strike, which was set to address various demands, including the introduction of a five-day banking week.
The committee was constituted following an agreement reached during a negotiating meeting on September 27, 2026, between the IBA, the United Forum of Bank Unions (UFBU), and BKSM. Its formation signals that the issue of a five-day workweek is now moving closer to official deliberation between bank management and employee representatives.
Committee to Address Work Week Changes
According to an IBA communication dated September 29, 2026, the committee will comprise senior representatives from both the banking industry and the UFBU. Raineesh Karnatak, MD and CEO of Bank of India, will chair the committee, with Punjab National Bank MD and CEO Ashok Chandra serving as the alternate chairman.
Other IBA representatives include Indian Bank MD and CEO Binod Kumar, IDBI Bank MD and CEO Rakesh Sharma, and State Bank of India Deputy Managing Director G S Rana. Seven representatives from UFBU-affiliated unions will also participate, alongside BKSM General Secretary Vinod Nikam as an invitee.
A primary focus of the committee's deliberations will be the issue of declaring the remaining Saturdays as holidays. Unions have indicated that the panel will explore various alternatives, consult relevant stakeholders, and work towards a solution acceptable to all parties, including customers.
Historical Context and Other Demands
The push for a five-day workweek in banking aligns with a broader historical evolution of working-hour norms. The concept of an eight-hour workday was championed by reformer Robert Owen in 1817, leading to widespread labor movements. The five-day, 40-hour workweek gained prominence in the early 20th century, notably with Henry Ford's adoption in his factories in 1926, which he argued would boost consumerism by providing more leisure time. The United States formally adopted the 40-hour workweek in 1938.
Beyond the five-day banking demand, unions have also raised concerns regarding the performance-linked incentive (PLI) scheme for officers at Scale IV and above. Discussions are expected to begin with the IBA to propose modifications to the government on this matter. Additionally, other residual issues outlined in the March 8, 2024, minutes will be addressed to expedite their resolution.
While the UFBU agreed to defer its planned agitation and strike actions in light of these assurances and proposed discussions, the latest IBA communication does not announce a final decision or an implementation date for five-day banking.