IBA Constitutes High-Level Committee to Resolve Five-Day Banking Week Dispute

⚡ Key Financial Takeaways

A joint IBA-UFBU committee has been constituted to negotiate the five-day banking week.

Rajneesh Karnatak (Bank of India) heads the IBA side, while seven union representatives form the UFBU side.

The planned three-day nationwide bank strike for September 28-30 was deferred following late-night discussions.

No final decision or implementation date for the five-day week has been announced; current Saturday holiday rules remain in effect.

The committee will also address residual issues from March 2024, including the Performance Linked Incentive scheme for senior officers.

💡 Why It Matters

The resolution of the five-day banking week debate is significant for both bank employees and customers. For staff, it represents a major shift in work-life balance and operational hours. For customers, any change in banking hours could impact access to cash and other services. The deferral of the strike indicates a willingness to resolve the dispute through dialogue, which helps maintain stability in the banking sector.

Joint Committee Formed to Address Banking Hours

The Indian Banks’ Association (IBA) has formally established a high-level committee to engage with bank unions regarding the implementation of a five-day banking week. This development follows a critical meeting on September 27, 2026, between the IBA Negotiating Committee and the United Forum of Bank Unions (UFBU).

In a letter dated September 29, 2026, the IBA’s HR & Industrial Relations department notified union general secretaries of the committee’s constitution. The primary objective of this body is to examine the feasibility of the five-day work week, consider alternatives, and consult with relevant stakeholders before reaching a consensus.

Key Members of the Negotiating Body

The committee comprises representatives from both the management and union sides. On the IBA side, Rajneesh Karnatak, Managing Director and CEO of Bank of India, has been nominated as the chairman. Ashok Chandra, MD & CEO of Punjab National Bank, will serve as the alternate chairman.

Other IBA representatives include: * Binod Kumar, MD & CEO, Indian Bank * Rakesh Sharma, MD & CEO, IDBI Bank * G S Rana, DMD (HR & CDO), State Bank of India

The UFBU side includes seven representatives from major bank employee associations: C H Venkatachalam (AIBEA), Rupam Roy (AIBOC), L Chandrasekhar (NCBE), Sanjay Khan (AIBOA), Debasish B Choudhary (BEFI), Prem Makkar (INBOC), and O P Sharma (INBEF). Vinod Nikam, General Secretary of BKSM, has been designated as an invitee to the discussions.

Strike Averted, Negotiations Continue

The formation of this committee comes after the UFBU deferred a planned three-day nationwide strike scheduled for September 28 to 30, 2026. The strike, which was primarily driven by the demand for a five-day banking week, was called off following late-night discussions on September 27. Both parties agreed to pursue the matter through the newly constituted committee rather than industrial action.

Currently, banks in India remain closed on Sundays and the second and fourth Saturdays of each month. The proposed five-day banking week would extend this closure to all Saturdays. It is important to note that the constitution of the committee does not signify an immediate implementation of this change. No final decision or timeline has been announced, and the existing holiday framework remains in effect until further notice.

Broader Agenda Includes PLI Scheme

While the five-day banking week is the immediate focus, the committee’s mandate also covers other residual matters from the discussions held on March 8, 2024. Specifically, the unions have raised concerns regarding the Performance Linked Incentive (PLI) scheme applicable to Scale IV and above officers. The final outcome of these negotiations will depend on the committee’s deliberations and the subsequent approvals required to alter the banking holiday framework.

🏛️ Background & Context

The demand for a five-day banking week has been a long-standing issue in Indian banking. Currently, banks operate on a six-day week, with closures on Sundays and two Saturdays per month. The UFBU and other unions have argued that a five-day week is necessary for employee well-being and aligns with global standards. The IBA has historically been cautious about such changes due to operational and customer service implications.

👁️ What To Watch Next

Readers should watch for the first official meeting of the IBA-UFBU committee and any subsequent statements regarding the feasibility of a five-day week. Additionally, updates on the PLI scheme for senior officers are expected as part of the broader negotiations. Any announcement of a final decision or implementation timeline will be a key development.