The Press Information Bureau (PIB) Fact Check Unit has debunked a viral Gazette notification claiming that the Centre declared every Saturday a public holiday for public sector banks. In a post on X, PIB Fact Check said "The document being circulated is Fake. No such notification has been issued by @FinMinIndia declaring every Saturday as public holiday for public sector banks." The purported Gazette, attributed to the Ministry of Finance (Department of Financial Services), claimed that the Central Government had declared every Saturday a public holiday for all Public Sector Banks, including State Bank of India. The fact-check unit confirmed that no such notification was issued by the Finance Ministry and urged people to flag suspicious content related to the Central Government through PIB Fact Check. The PIB clarification makes clear that there is no notification declaring every Saturday a public holiday for public sector banks.
A high-level committee has been formally constituted by the Indian Banks' Association (IBA) to discuss the implementation of a five-day work week following a deferred strike by the UFBU due to ongoing concerns over incentives and other employee issues. In a letter dated September 29, 2026, the IBA's HR & Industrial Relations department informed the general secretaries of bank unions about the constitution of the committee. The strike being deferred was originally scheduled from September 28-30, following assurances from the IBA and reached an understanding on September 27. As per Mint reports, the development comes after the UFBU deferred its proposed three-day nationwide bank strike following late-night discussions with the IBA. The committee's constitution does not mean that five-day banking has been implemented - no final decision or implementation date has been announced yet, and the existing Saturday holiday arrangement continues for now. According to AIBEA's latest circular dated September 30, discussions on the long-pending 'residual issues' will now commence, covering 25 unresolved demands that remained unresolved when the 12th Bipartite Settlement / 9th Joint Note was signed on March 8, 2024.
The committee includes representatives from both IBA and UFBU with clear leadership structure. Rajneesh Karnatak, MD and CEO of Bank of India, serves as Chairman of the committee, while Ashok Chandra, MD and CEO of Punjab National Bank, holds the position of Alternate Chairman. The IBA representatives include Binod Kumar, MD and CEO of Indian Bank, Rakesh Sharma, MD and CEO of IDBI Bank, and GS Rana, DMD (HR and CDO) of State Bank of India. The UFBU side is represented by CH Venkatachalum, General Secretary of AIBEA, Rupam Roy, General Secretary of AIBOC, L Chandrasekhar, General Secretary of NCBE, Sanjay Khan, General Secretary of AIBOA, Debasish B Choudhary, General Secretary of BEFI, Prem Makkar, General Secretary of INBOC, OP Sharma, General Secretary of INBEF, and Vinod Nikam, General Secretary of BKSM as an invitee. According to Mint reports, the UFBU will be represented by the general secretaries of its seven constituent unions, with Vinod Nikam being an invitee to the committee. According to AIBOC's Rupam Roy, the deferment was not an abandonment of the struggle but a conscious decision to test the formal mechanism created through their unity and mobilisation.
The 25 residual issues that will now be discussed range from pension updation and gratuity to recruitment, medical insurance, working hours, staff welfare and promotion-related issues. For retirees and pensioners, the focus is particularly on pension updation, DA, gratuity-related matters and medical insurance. Key demands include pension updation for past retirees, gratuity payment at one month pay for each year of service without restrictions, DA scheme for all pensioners at uniform 8088 points index, and adequate recruitments of clerks and sub-staff in banks. Other significant issues include regulated working hours for officers, uniform cash hours and business hours, transport allowance for physically challenged employees, and modifications in provisions on disciplinary action and procedure. For employees, some of these demands could have a direct bearing on pay, working conditions and career progression, with the latest AIBEA circular signaling that these unresolved issues will now be taken up with the IBA.
Banks in India currently follow a partially six-day working week that came into effect on September 1, 2015 after the government notified the second and fourth Saturdays as public holidays under the Negotiable Instruments Act. The system operates with the second and fourth Saturdays as holidays, while the first, third and fifth Saturdays are working days, with Sundays remaining holidays. This contrasts sharply with the Monday-to-Friday working week that is the norm for core banking operations across the US, UK, Canada, Australia, Japan, and much of Europe. According to Mint reports, the demand for a five-day work week was part of the December 2023 understanding between the IBA and United Forum of Bank Unions (UFBU) and was subsequently included in the 12th bipartite settlement and ninth joint note signed on March 8, 2024. The recent agreement between the IBA and UFBU only provided for discussions through a committee on the demand for declaring the remaining Saturdays as holidays, which did not amount to a government notification implementing a five-day banking week.
