The proposal for a five-day banking week is advancing as a high-level committee convenes for its first meeting today. This initiative is anticipated to progress rapidly as the panel aims to finalise its report, which will subsequently guide the Reserve Bank of India (RBI) and the finance ministry in determining further actions based on its recommendations.

CH Venkatachalam, who serves as the General Secretary of the All India Bank Employees’ Association (AIBEA), stated that the committee will concentrate primarily on the implementation of the five-day work schedule within the banking sector. Once the committee submits its findings, the RBI and finance ministry will evaluate how to advance this proposal, including any necessary legislative modifications.

The committee’s mandate is strictly focused on the five-day work week and will not encompass other demands made by bank unions, which include performance-linked incentives and improvements in working conditions. These additional issues are set to be addressed in separate discussions outside the committee’s scope.

Formation of the Committee

The Indian Banks’ Association (IBA) set up this high-level committee on 3 October 2026, following the resolution of a three-day strike announced by bank unions amid ongoing negotiations. The committee is charged explicitly with addressing the feasibility and implementation of a five-day banking week.

The panel comprises senior representatives from both the IBA and the United Forum of Bank Unions (UFBU), alongside BKSM General Secretary Vinod Nikam. Bank of India Managing Director and Chief Executive Officer Rajneesh Karnatak will lead the committee, with Punjab National Bank MD and CEO Ashok Chandra serving as the alternate chairman.

According to reports, the committee will explore mechanisms to ensure employees can transition to a five-day workweek while still maintaining banking operations on two Saturdays each month. This structure is designed to balance the needs of bank employees with customer access to services.

Background on the Five-Day Work Week Proposal

Banking unions have long championed a Monday-to-Friday work schedule for their employees, citing that long working hours have become the norm without corresponding breaks. They point out that not only the RBI but also the Department of Financial Services follows a five-day week, reinforcing their demand for similar practices in commercial banking.

Currently, banks observe closures on the second and fourth Saturdays of each month. The discussion surrounding a five-day banking week has been ongoing for over two years, underpinning the significance of this initiative in the context of modern labour practices in the sector.

Bank unions assert that the commitment to a five-day work week was formally recognised in the 12th bipartite settlement. The recommendations emerging from this newly formed committee will play a pivotal role in shaping the future of banking operations in India, particularly in relation to employee welfare and customer service.

As the committee proceeds with its work, the outcomes are expected to influence the decision-making processes of the RBI and the finance ministry, providing a clearer framework for the possible implementation of the five-day work week in the banking industry.

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