5 days Banking Update: High Level Committee Meeting on 5-Day Banking will be held on 12 November in Mumbai

On November 12, 2026, in Mumbai, the Indian Banks' Association (IBA) has extended an invitation to representatives of major bank officers' and employees' unions to attend a meeting of the High-Level Committee on five-day banking. The general secretaries of seven bank unions and organizations have been invited by the IBA's HR & Industrial Relations department. The meeting will take place in person at the Committee Room, IBA, World Trade Center, Cuffe Parade, Mumbai, at 10:00 AM.

The invitation has been addressed to the general secretaries of the All India Bank Employees’ Association (AIBEA), All India Bank Officers’ Confederation (AIBOC), National Confederation of Bank Employees (NCBE), Bank Employees Federation of India (BEFI), All India Bank Officers’ Association (AIBOA), Indian National Bank Officers’ Congress (INBOC) and Indian National Bank Employees’ Federation (INBEF).

The meeting is significant for bank employees and officers, as the demand for five-day banking has been a major issue in the banking sector. The United Forum of Bank Unions (UFBU) had announced a three-day strike from September 28 to 30, 2026. However, the strike was deferred on the night of September 27, 2026, following assurances that a High-Level Committee would be formed to discuss the implementation of five-day banking. More than a month has passed since then, but no in-person meeting of the committee has taken place so far.

The first online meeting of High level committee was scheduled to be held on 30 September 2026 but it was postponed.

However, this new letter from IBA only confirms the date, time and venue of the upcoming High-Level Committee meeting. It does not specify the agenda, the decisions expected or whether a final decision on implementing five-day banking will be taken during the meeting.

Bank employees and officers will be looking for further developments following the November 12 meeting, particularly regarding the progress of discussions on the long-pending demand for five-day banking.

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5-Day Banking Update: IBA–UFBU Meeting Held on 27 September 2026; Proposed Strike Action Deferred

The United Forum of Bank Unions (UFBU) and the Indian Banks’ Association (IBA) held a meeting on 27 September 2026 to discuss key issues concerning bank employees and officers, including the long-pending demand for 5-day banking, the Performance Linked Incentive (PLI) scheme and other outstanding demands.

According to UFBU Circular No. 2026/32 dated 27 September 2026, the meeting concluded with decisions to initiate further discussions on the pending issues. In view of these developments, UFBU has agreed to defer its proposed agitation programmes and strike actions.

Key Outcomes of the IBA–UFBU Meeting

1. High-Level Committee on 5-Day Banking

The implementation of 5-day banking was a key issue raised by the UFBU leadership. The unions emphasised that their demands should be addressed on a priority basis, particularly the implementation of a five-day working week in banks.

It was decided that a high-level committee comprising representatives of IBA and UFBU would be formed immediately to deliberate on declaring the remaining Saturdays as holidays.

The committee will examine possible alternatives, consult all stakeholders and work towards a mutually acceptable solution, keeping customers’ interests in view.

2. Discussions on the PLI Scheme

The meeting also discussed the Performance Linked Incentive (PLI) scheme applicable to Scale IV and above officers.

It was agreed that discussions could begin with IBA to propose modifications to the Government in the existing scheme, taking into account the observations and concerns raised by the unions and associations.

3. Resolution of Other Pending Issues

The meeting further agreed that the residual issues listed in the minutes dated 8 March 2024 would be discussed between the parties for an expedited resolution.

Both sides acknowledged the contribution of bank employees and officers to the growth of public sector banks and the wider banking industry.

4. Proposed Strike and Agitation Deferred

In view of the decisions taken during the meeting and the proposed discussions on outstanding demands, UFBU has agreed to defer the proposed agitation programmes and strike actions.

The development indicates that further dialogue between IBA and UFBU will take place to resolve the pending issues.

Who Attended the Meeting?

The IBA Negotiating Committee was represented by its Chairman, Shri Rajneesh Karnatak, MD & CEO of Bank of India, along with other senior representatives from Bank of India, Punjab National Bank, Indian Bank and State Bank of India.

UFBU was represented by leaders from its constituent organisations, including AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBOC and INBEF.

What Does This Mean for Bank Employees?

The formation of a high-level committee on 5-day banking is an important development in the ongoing discussions between IBA and UFBU. However, the final implementation of 5-day banking has not yet been announced.

Bank employees and officers will be looking forward to the committee’s discussions and a concrete decision on the remaining Saturdays as holidays.

The outcome of the upcoming discussions will be significant for employees, customers and the banking sector as a whole.

The IBA–UFBU meeting has opened the way for further negotiations on 5-day banking, PLI reforms and other pending demands. UFBU has deferred the proposed strike action, and employees will now await the outcome of the discussions and the next steps towards implementation of 5-day banking.

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Government never agreed to 5-day work week for banks, facts being twisted: Official sources

A finance ministry official stated prior to the United Forum of Bank Unions' (UFBU) three-day strike scheduled for September 28–30 that the government never agreed to a five-day workweek for banks because this crucial demand has not been fulfilled.

"During the most recent pay discussions, the five-day workweek was never agreed upon. It was never used as a bargaining chip. The official, who wished to remain anonymous, stated, "They (bank unions) are distorting the facts."

In a letter dated September 22, the All India Bank Officers’ Confederation said there had been no response to this demand “which was agreed and signed in March, 2024 under the last wage revision settlement”. The letter added that officials from the Indian Banks’ Association (IBA) had informed union representatives that the issue of five-days banking is “under consideration by the Government”.

Currently, bank branches are open on the first, third, and fifth Saturdays of every month.

IBA has accordingly recommended to the Government. The due changes in the working hours, will be effective after approval by the Government of India and necessary clearances from Government / Reserve Bank of India,” the Settlement said.

However, the finance ministry official asserted the government had not agreed to a five-day work week, although a lot of other concessions were made.

“The IBA didn’t want to go beyond an 11% hike in the wage negotiations, but the government intervened and a hike of 17% was announced. Even on the issue of family pension, the IBA was not keen but the government said that post-retirement, they will be on the other side, and they should not fight it,” the source said, adding that the performance-linked incentive (PLI) scheme had been kept on hold for the current financial year following opposition.

Announced in November 2024, the PLI scheme for public sector banks’ employees faced intense pushback and was called “discriminatory” because it was only for Scale 4 officers and above. According to bank unions, the scheme is divisive, demotivating, and distortionary.

With the three-day strike that begins on Monday in mind, the government on Wednesday said public sector banks and regional rural banks will function as normal on September 27, Sunday. The decision, the Ministry of Finance said, was being taken to ensure “genuine banking needs” of the public are not hindered for an extended period.

With September 26 being a non-working Saturday for banks, the three-day strike would have led to banks being shut for five days in a row.

The RBI has given its approval for all bank branches, offices, ATM-linked branches, and currency chests to remain “fully operational” on Sunday, the finance ministry further said on Wednesday.

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5-Day Banking Latest News: Bank Unions Announce Nationwide Demonstrations on 12 August

The United Forum of Bank Unions (UFBU) has called for coordinated protests on August 12, 2026, to call for the early adoption of five-day banking. All state capitals as well as other significant cities and locations around the nation will host the protests after business hours.

The need for five-day banking hasn't been met in over two years. In January 2026, bank workers staged a one-day walkout in support of the demand, but no decision was made about the introduction of five-day banking.

In its circular dated 4 August 2026, UFBU said that after the successful strike on 27 January 2026, bank employees and officers were expecting a positive response from the Government on the 5-day banking demand.

According to UFBU, the Indian Banks’ Association (IBA) had agreed to 5-day banking in the MOU as well as the Settlement/Joint Note, and the matter was recommended to the Government. However, a final decision is still awaited.

According to UFBU, the government has requested that banks begin preparing for the upcoming wage adjustment settlement, which is scheduled for November 2027. The unions, however, stated that a decision on the outstanding matter of implementing five-day banking had yet to be made. As a result, the unions have made the decision to bring up the issue once more and ask the government for an early ruling. 

On August 12, 2026, after business hours, UFBU has agreed to hold coordinated protests in all state capitals as well as other significant towns and locations. It has been requested that all bank employees and member unions fully participate in the program. According to UFBU, the unions will convene soon to choose their next line of action, which may include going on strike.However, no new strike date has been announced yet.

The circular has been signed by leaders of AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBOC and INBEF.

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Big Update for Bank Employees: UFBU to Discuss 5-Day Banking and PLI in Upcoming Meeting

The United Forum of Bank Unions (UFBU) will shortly convene to examine a number of significant issues impacting bank officers and staff, the All India Bank Officers’ Confederation (AIBOC) has told its affiliates. These include the Performance Linked Incentive (PLI) program, pension-related concerns, the need for a five-day banking week, and the impending pay settlement negotiations. 

According to UFBU, it has been persistently pursuing its main goals, which include a negotiated PLI system and the implementation of a five-day banking week. Following the unions' notification of a strike, these matters are presently being resolved through conciliation before the Chief Labour Commissioner under the Ministry of Labour.

According to the unions, the government did not react to the call for a five-day banking week and continued to be pessimistic. Consequently, on January 27, 2026, bank workers observed a statewide protest strike. Nevertheless, talks with the government and the Indian Banks' Association (IBA) did not result in any advancement even after the strike. 

According to UFBU, the Department of Financial Services (DFS) subsequently ordered banks to pay PLI for 2024–2025 to all officials and workers up to Scale III. Additionally, it directed banks to use a government-determined unilateral formula to pay PLI to Scale IV officers and higher.

The unions objected to this ruling, claiming that it went against the Joint Note and Bipartite Settlement (BPS). In the event that the updated PLI plan for Scale IV and higher officers was put into effect, UFBU declared an agitation and threatened to go on strike within a day.

The High Court is now involved in the PLI controversy. According to UFBU, the court has heard its arguments in a proper manner. The case's next hearing is set on October 6, 2026.

Additionally, the unions stated that there is currently no sign that the government or banks will put the updated PLI system into effect right now. UFBU stated during talks with the IBA that it would be open to discussing the PLI system in more detail and making any necessary adjustments.

In accordance with the current formula under the Bipartite Settlement and Joint Note, UFBU has chosen to request that the DFS and the IBA implement PLI for Scale IV officers and above for the years 2024–2025 and 2025–2026. Senior officers shouldn't be denied PLI that has already been paid to other officers and employees, according to the unions. 

UFBU has decided to put its agitation programs on hold for the time being because neither the government nor the banks have taken any immediate action to implement the updated PLI scheme. It did, however, issue a warning that the unions would immediately go on strike if the updated PLI plan was attempted to be implemented. It has been requested that all union units and members pay attention.

Pension and Wage Settlement Issues Also on Agenda

UFBU said it is also pursuing several other long-pending issues, including:

• Pension updation
• Revision of Ex-gratia
• Uniform Dearness Allowance (DA) formula on pension

The unions added that the DFS has advised all banks and the IBA to begin the process for the early completion of the 13th Bipartite Settlement (BPS) and the 10th Joint Note negotiations.

Government to Form High-Power Committee

The Government has also decided to set up a High-Power Committee to take forward its agenda on banking sector reforms. UFBU said all these developments will be discussed in its upcoming meeting, which will be convened shortly.

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5 Days Bank Working: When will Indian banks start working for 5 days, how far has the demand for 2 days holiday reached?

 

Will banks soon begin operating for five days? This question is being asked by most bank employees, associations, and ordinary customers. When will banks begin operating Monday through Friday, with all Saturdays and Sundays closed? 

Demands for a five-day working day and two holidays are being consistently raised. Bank associations have placed their demands before both the RBI and the government, but no final decision has been made yet. Neither the government nor the RBI has issued any official announcements.

At present, banks remain closed on all Sundays along with second and fourth Saturdays as before.

Why is the decision stalled? 

This proposal was agreed upon during the salary agreement between the Indian Banks' Association (IBA) and bank unions. However, government approval is required for its implementation. Despite numerous protests and negotiations, no timeline has been established.

Bank employees want a better work-life balance. They believe that the RBI and many other financial institutions already have a five-day work system, so banks should also implement it. Unions have also suggested that slightly longer working hours could help maintain a balanced work schedule.

At present, nothing has changed for customers. Bank branches are open as usual, and all services are continuing as usual. However, if the 5-day system is implemented in the future, some changes to banking timings and services may be observed.

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Why 5-Day Banking Is Essential for the Indian Banking Sector?

For the Indian banking industry to increase productivity, staff happiness, and service quality, a five-day banking week must be implemented. Digital banking, regulatory compliance, cybersecurity concerns, and increased customer service responsibilities have all contributed to the complexity of banking operations. Bank workers can get enough rest and recuperation from a regular five-day workweek, which boosts output, improves decision-making, and lowers operational errors. 

Additionally, five-day banking promotes a better work-life balance, which is essential for addressing the stress, exhaustion, and mental health issues that bank employees confront. Employees that are motivated and get enough sleep are more customer-focused, which guarantees better service delivery and grievance resolution. 

The banking sector may become more competitive with other financial and corporate sectors that already follow a five-day work culture as a result of this shift, which can lower attrition and draw in new talent.

 

From an operational standpoint, banks now mostly rely on digital platforms that offer round-the-clock services, like internet banking, mobile banking, ATMs, and UPI. Therefore, cutting back on physical working days won't have a big effect on consumer convenience. 

Rather, it enables banks to concentrate on more effective planning, training, system improvements, and compliance initiatives. 

All things considered, five-day banking helps Indian banks comply with international standards, boosts staff morale, increases institutional effectiveness, and promotes the banking industry's sustainable growth without sacrificing client care.

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Latest Update on 5 Days Banking

To find out how the 5-Day Banking implementation was going, an RTI was submitted. For a while now, the implementation has been delayed. While the DFS claims that the idea is being considered, the IBA claims that it is still pending. However, how much time will it take? An RTI was filed to obtain clarification on the issue, but the government declined to offer any updates. No information may be disclosed until the matter is resolved, according to the response.

In addition to refusing to provide any information, the Appellate Authority received an appeal against the RTI reply. The government has not made a firm decision about the introduction of 5-Day Banking, despite numerous debates. For years, workers and unions have been calling for this reform, but the Department of Financial Services (DFS) and the Indian Banks' Association (IBA) are unable to resolve the issue.

Instead of offering a precise date, the government opted to provide evasive and inconclusive responses when the matter was brought up in Parliament earlier. No progress has been made even after over a year. This delay demonstrates a lack of accountability and seriousness toward the banking staff. Such persistent delays beg the question: Why is the government unable to execute a long-overdue reform like 5-Day Banking if it genuinely cares about the well-being of bank workers and increasing industry efficiency?

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