Five-Day Banking: IBA-UFBU Committee Holds First Meeting

The demand for a five-day Banking system in India has moved into a formal discussion stage after the high-level committee formed by the Indian Banks’ Association (IBA) and the United Forum of Bank Unions (UFBU) held its first meeting on Thursday.

The meeting follows the decision by bank unions to defer their proposed three-day nationwide strike from September 28 to 30 after the IBA agreed to establish a committee to examine the demand for all Saturdays to be declared holidays for bank employees.

Five-Day Banking Committee Holds First Meeting

The 12-member high-level committee was formed on September 29 following an understanding reached between the IBA and UFBU on September 27.

According to the latest UFBU circular dated October 1, the committee met on Thursday afternoon. The meeting had initially been scheduled for September 30 but was postponed because of unavoidable reasons.

The first meeting marks the beginning of formal discussions between representatives of the banking industry and employee unions on the long-standing demand for a five-day working week.

However, the formation of the committee does not mean that five-day banking has been approved. The demand remains under discussion, and further deliberations will be required before any decision is taken.

Unions Seek a Clear Roadmap for Five-Day Banking

Bank unions have welcomed the creation of the committee and expressed hope that it will help establish a clear roadmap for implementing five-day banking at the earliest possible opportunity.

The unions have argued that the issue requires detailed consideration because changing the banking workweek could affect employees, customers, branch operations and other stakeholders.

The UFBU said the concerns of different stakeholders need to be understood and addressed before a new working arrangement can be implemented across the banking sector.

This means that discussions are likely to cover not only employee holidays but also the operational requirements of banks and the availability of banking services to customers.

Physical Meeting to Discuss the Issue in Detail

The UFBU has proposed a full-day physical meeting of the committee at the earliest opportunity. The objective is to discuss the various aspects of five-day banking in greater detail and examine the concerns associated with implementation.

The committee has agreed to hold such a meeting shortly, according to the UFBU. The union forum said further developments would be communicated after the discussions progress.

A detailed physical meeting could provide the participants with an opportunity to examine operational issues, employee concerns and the potential impact on customers before deciding on the next steps.

What Is the Five-Day Banking Demand?

Under the current arrangement, bank branches are generally closed on Sundays as well as the second and fourth Saturdays of every month.

Bank unions have been demanding that all Saturdays be declared holidays. If implemented, banks would generally operate from Monday to Friday, creating a five-day working week for the sector.

The demand has been part of the unions’ broader discussions with the banking industry and has emerged as a major issue in their recent agitation.

The proposal would represent a change from the existing system, under which employees work on the first and third Saturdays of most months while the second and fourth Saturdays are holidays.

Why the September 28-30 Strike Was Deferred

Bank unions had announced a proposed three-day nationwide strike from September 28 to 30 over their demands, with five-day banking among the key issues.

The proposed strike was deferred after the IBA and UFBU reached an understanding under which a high-level committee would be established to examine the five-day banking demand.

The decision also meant that bank branches remained operational during the period of the half-yearly closing of accounts.

The deferment does not mean that the unions have withdrawn their demand. Instead, the issue has moved from an immediate strike-related dispute into a structured discussion through the IBA-UFBU committee.

What Happens Next?

The next major step is expected to be the full-day physical meeting proposed by the UFBU. The meeting is intended to allow the committee to examine the different concerns surrounding the proposed change.

The discussions will determine how the issue progresses and whether the parties can develop a mutually acceptable framework for five-day banking.

For bank customers, any eventual change would be significant because Saturday branch availability is currently part of the banking calendar. However, digital banking, ATMs and other electronic channels continue to provide services outside regular branch working days.

Until a final decision is reached, the existing holiday arrangement remains in place. The committee’s formation should therefore be viewed as a step toward discussions rather than confirmation that all Saturdays will become bank holidays.

Five-Day Banking: Key Points

• The IBA-UFBU high-level committee held its first meeting on October 1.
• The 12-member committee was formed on September 29 after an agreement between the IBA and UFBU.
• Bank unions are seeking holidays on all Saturdays instead of only the second and fourth Saturdays.
• A proposed three-day bank strike from September 28 to 30 was deferred after the committee was agreed upon.
• The committee has agreed to hold a full-day physical meeting to discuss the issue in greater detail.
• Five-day banking has not yet been approved and remains under discussion.

Frequently Asked Questions

1. What is five-day banking?

Five-day banking refers to a system in which bank branches operate on five days of the week, generally Monday to Friday, with Saturdays and Sundays treated as weekly holidays.

2. Are all Saturdays currently holidays for banks in India?

No. Under the existing arrangement, bank branches are generally closed on the second and fourth Saturdays, while the first and third Saturdays are generally working days.

3. Why are bank unions demanding five-day banking?

Bank unions are seeking holidays on all Saturdays as part of their demands concerning the working week and employee working conditions.

4. Has five-day banking been approved?

No. The formation of the IBA-UFBU committee does not constitute approval. The demand is currently being examined through discussions between the relevant parties.

5. When was the high-level committee formed?

The 12-member high-level committee was formed on September 29, 2026, following an understanding between the IBA and UFBU reached on September 27.

6. Why was the bank strike deferred?

The proposed three-day nationwide strike from September 28 to 30 was deferred after the IBA agreed with the UFBU to establish a high-level committee to examine the five-day banking demand.

7. What will the committee discuss?

The committee is expected to examine the concerns of different stakeholders and discuss the issues that would need to be addressed before five-day banking could be implemented.

8. What happens next in the five-day banking discussions?

The committee has agreed to hold a full-day physical meeting shortly. Further developments will depend on the discussions and any subsequent agreement between the IBA and UFBU.