The Indian Banking Association’s Plan
The Indian Banking Association has given the green light to a proposal that could change bank operating hours. The idea is to have banks operate only from Monday to Friday, giving employees the weekends off. The big question is whether the Union Finance Ministry, under the Modi government, will approve this change.
Weekend Break for Banks
If the proposal goes through, Saturdays and Sundays will become official bank holidays. This means banks would be closed on these days. However, we’re still waiting for the Union Finance Ministry’s decision on whether they’ll agree to this new arrangement.
Working Less, but Working Longer
Should the proposal be accepted, banks would effectively only operate for five days each week. This would mean they’d be open from Monday to Friday. However, employees might have to work an extra 45 minutes daily to make up for the reduced workweek.
Government Approval and Next Steps
The proposal for the two-day weekend has made its way to the Ministry of Finance for approval. Once they give the go-ahead, the proposal will then move on to the Reserve Bank of India for further consideration.
Digital Transactions Taking Over
A significant portion of daily cash transactions are already happening digitally. This means that even if banks reduce their operating days from six to five, it shouldn’t cause major issues, according to sources in the banking sector.
Embracing Digital Banking
The shift towards digital banking is already quite advanced. Most banking transactions are now conducted online, which reduces the need for customers to visit physical bank branches.
Bank Branches’ Changing Role
Bank branches are evolving into customer service centers. Nowadays, customers generally only need to visit branches for tasks like opening accounts, addressing complaints, or signing important documents. Otherwise, there’s less necessity to make a trip to the bank.