The new year brings fresh industrial action for India's banking sector, as employee unions have called for a nationwide strike later this month. The primary demand is the long-pending implementation of a five-day working week for banks across the country.
Strike Call After Government Silence
In a circular dated January 4, the All India Bank Officers’ Confederation (AIBOC) declared that a complete, all-India bank strike will be observed on Tuesday, January 27. The union stated that this drastic step was necessitated by the "lack of response from the government" regarding their core demand. This is particularly frustrating for the unions as they claim the five-day banking week was already agreed upon during the wage revision settlement signed between the Indian Banks’ Association (IBA) and bank unions back in March 2024.
The circular expressed deep disappointment, noting, "...it is unfortunate that the Government is not responding to our programmes and our genuine demands." The unions argue that their demand is both reasonable and feasible, pointing to existing precedents in other financial institutions.
Why Banks Can Shift to a 5-Day Week, Say Unions
AIBOC's justification for the demand highlights a significant disparity in working schedules. The circular pointed out that other major financial bodies like the Reserve Bank of India (RBI), Life Insurance Corporation (LIC), and General Insurance Corporation (GIC) already function on a five-day week. Furthermore, both Central and State Government offices remain closed on Saturdays.
"And therefore, there is no reason why banks cannot introduce 5-day banking," the union asserted. To address concerns about a potential reduction in customer service hours, the confederation clarified that the new schedule would not cut overall working hours. The proposal includes extending the daily working time by 40 minutes from Monday to Friday, thereby compensating for the lost Saturday.
Potential Impact and the Road Ahead
The nationwide strike is likely to disrupt normal banking operations, affecting services like cash withdrawals, deposits, cheque clearances, and loan processing. While the strike aims to put pressure on the government and the IBA to honor the perceived agreement, it also signals growing impatience among banking staff.
The key question remains whether this industrial action will finally break the deadlock. The banking unions are using the strike to reiterate that their demand is not new but part of a settled agreement, and they see no logical barrier to its implementation given the practices followed by peer institutions. All eyes will be on the government's and IBA's response in the days leading up to January 27.
