Bank unions have been invited by the Indian Banks Association (IBA) to sign a pay revision settlement in Chennai on March 11, 2024. This was revealed on social media by CH Venkatachalam, the general secretary of the All India Bank Employees' Association (AIBEA).
In a recent letter to Finance Minister Nirmala Sitharaman, the United Forum of Bank Unions—a group that represents a number of bank employee unions—requested that banks adopt a five-day workweek. As per the agreement made in 2015, banks are closed on the second and fourth Saturdays of the month.
The bank employee unions and IBA signed a Memorandum of Understanding (MoU) in December, committing to a 17% pay raise that will result in an increased payroll expenditure of Rs 12,449 crore. It is anticipated that the ultimate agreement would be sealed in 180 days.
According to Venkatachalam, negotiations over how to divide the agreed-upon sum among various components and categories have taken place, and on January 12, 2024, the Cost Sheet will be signed. After then, the settlement was drafted, and by February 13, 2024, it was almost complete.
Venkatachalam promised to provide further information on social media as soon as the settlement is signed.
The finance minister was reassured by the United Forum of Bank Unions in a letter that the shift will not impact client banking hours or officer and staff work hours.
They had pleaded with the minister of finance to look into the situation and provide the Indian Banks' Association the necessary instructions. They have also emphasized how RBI and LIC now operate on a five-day workweek.
The Indian Banks' Association and bank unions signed a Memorandum of Understanding (MoU) in December 2023 that addressed pay revision and improving service conditions for bank employees. As a consequence, salaries at all Indian public sector banks increased by 17%, totaling Rs 12,449 crore. This increase would help almost nine lakh workers, including 3.8 lakh officers from PSU banks like SBI and a few old-generation private banks.
