The Finance Ministry has rejected claims that it agreed to introduce a five-day work week for banks. The ministry has said it made no such commitment.
The clarification comes just before bank employees begin a three-day nationwide strike. The strike will run from September 28 to 30. The unions have listed five-day banking among their main demands. Government sources cited by PTI said the ministry has not approved the five-day work week.
Unions Claim IBA Agreed to Five-Day Banking
The United Forum of Bank Unions (UFBU) represents around 90 per cent of bank employees. The union body says the Indian Banks' Association (IBA) agreed to the five-day work week. The agreement came under the 12th Bipartite Settlement and 9th Joint Note. The two sides signed the agreement on March 8, 2024.
Under the proposal, banks would remain closed on Saturdays. Employees would work for an extra 40 minutes from Monday to Friday. The longer daily hours would make up for the removal of the additional working day. The IBA later sent the proposal to the government. The government is still considering it, according to sources.
Finance Ministry Rejects Union's Claim
The Finance Ministry has taken a different position. Sources said the ministry never promised to introduce a five-day work week. The government has, however, settled several other demands raised by bank unions.
These include a higher family pension for retired bank employees. The government has also introduced a pension option for employees who resigned.
PLI Demand Still Pending
The unions have also demanded the withdrawal of the Performance Linked Incentive (PLI) scheme. The government has kept this issue in abeyance, sources said.
The strike will begin during the banking sector's half-yearly closing. This timing could affect regular banking services and operations.
Public Sector Banks to Open on Sunday
The government has taken steps to reduce disruption for customers. It has directed public sector banks to remain open on Sunday, September 27. Banks will get an additional working day just before the strike starts.
The move aims to help customers complete important banking transactions before the three-day strike.
Central Government Salaries to Be Paid Early
The Finance Ministry has also asked ministries and government departments to release September salaries in advance. An office memorandum from the Controller General of Accounts said Central Government employees could receive their September 2026 salaries and wages on September 25.
The order covers employees in central government offices. It also includes Defence, Posts and Telecommunications employees. The government can also release September pensions to Central Government pensioners on September 25. The same arrangement applies to wages for industrial employees of the Central Government.
Government Appeals to Bank Employees
The Finance Ministry had earlier asked bank employees to withdraw the strike.
It urged the unions to resolve the remaining issues through talks. The ministry said it had already addressed most of the unions' concerns.
However, the unions continue to press for action on several demands.
Other Demands Raised by UFBU
The UFBU has demanded five-day banking along with several pension-related changes.
The union body wants the government to improve and update pension benefits. It also wants a uniform dearness allowance formula for all bank pensioners.
The UFBU has also sought an option for employees covered by the National Pension System (NPS) to move to the old pension scheme.
The three-day strike is scheduled for September 28 to 30. It comes at a crucial time for banks because of the half-yearly closing.