The long-pending demand for a five-day workweek in the banking sector is once again in the spotlight.
The United Forum of Bank Unions (UFBU) has announced fresh strikes, demanding that the government approve the five-day banking proposal without further delay.
The union body has called an all-India strike on September 11, followed by another three-day strike on September 28, 29 and 30.
If the demands are still not resolved, the UFBU has warned of an indefinite strike from October 26, 2026.
Apart from the five-day workweek, the unions are also opposing a new performance-linked incentive (PLI) scheme for senior bank officers.
What Is the Current Status of 5-Day Banking?
The proposal for a five-day banking week is not new.
The Indian Banks’ Association (IBA), which represents bank management, and employee and officer unions had already reached an agreement in principle on the issue.
The proposal was included in the 12th Bipartite Settlement and 9th Joint Note signed on March 8, 2024.
Under the proposal, banks would operate from Monday to Friday, while Saturdays and Sundays would be weekly holidays.
However, employees would work for around 40 additional minutes each day from Monday to Friday. This would compensate for the working hours currently completed on Saturdays.
The problem is that the agreement between the IBA and unions does not automatically change the bank holiday calendar.
A formal notification from the government is still required.
Why Are Banks Still Open on Some Saturdays?
At present, bank branches are closed only on the second and fourth Saturdays of every month.
The government declared these two Saturdays as bank holidays in 2015 under the Negotiable Instruments Act, 1881.
The IBA has proposed extending the same arrangement to all Saturdays.
However, the government has not yet announced a specific timeline for implementing the proposal.
In a parliamentary response in February 2026, the government confirmed that the IBA had submitted the proposal to declare all Saturdays as bank holidays.
What Will Change If 5-Day Banking Is Approved?
If the proposal gets government approval, bank branches would generally operate from Monday to Friday.
Both Saturday and Sunday would become weekly holidays.
However, this would not simply mean that bank employees work fewer hours. The March 2024 agreement proposes adding around 40 minutes to the daily working time from Monday to Friday.
For customers, the biggest change would be that branches would remain closed on the first, third and fifth Saturdays, which are currently working days.
There would be no major break in digital banking services. Facilities such as UPI, internet banking, mobile banking and ATMs would continue to remain available even when physical branches are closed.
Why Are Bank Unions Planning Fresh Strikes?
The UFBU says the government has delayed implementing the five-day workweek despite the agreement reached between the IBA and employee organisations.
The issue has already led to protests and strikes this year.
The UFBU had organised a nationwide strike on January 27, 2026, with unions estimating that around eight lakh employees and officers participated.
The unions again intensified their campaign in August, holding demonstrations and demanding immediate implementation of the proposal.
Now, the UFBU has announced another round of strikes in September and an indefinite strike from October 26 if its demands remain unresolved.
Unions Also Oppose New PLI Scheme
The five-day workweek is not the only issue behind the latest agitation.
The UFBU is also opposing a performance-linked incentive (PLI) scheme for Scale IV officers and above.
According to the union body, the government-directed scheme is different from the PLI arrangement that was agreed upon between the IBA and unions.
The UFBU says the agreed framework was supposed to provide a uniform incentive linked to the overall performance of the bank and cover employees and officers up to Scale VII.
The union claims that under the new arrangement, Scale IV and above officers could receive PLI of up to 365 days of basic pay, depending on individual performance.
For workmen employees and officers up to Scale III, the maximum incentive would reportedly be 15 days of Basic Pay plus DA.
The UFBU has called the arrangement discriminatory because it could create a significant difference in incentives between senior officers and the rest of the banking workforce.
What Happens Next?
The five-day banking proposal is still waiting for the government’s formal notification.
Meanwhile, the UFBU has increased pressure through strikes and demonstrations.
The union has demanded a clear commitment from the government on five-day banking, withdrawal or modification of the PLI scheme through discussions with unions, and resolution of other pending issues.
For customers, the biggest potential change would be simple: if the five-day workweek is approved, bank branches could remain closed every Saturday and Sunday.
However, until the government officially notifies the change, the existing bank holiday schedule will continue.