Are Banks Closed Today (December 16); Find Details Here

Bank Holidays December 2023: Public sector banks in India have long been demanding a 5-day work week in India along with a pay hike. Last week a consensus was reached where it was decided to increase the salaries of bank employees but whether they will get a pay hike is yet uncertain. There has been confusion among people if banks will remain closed on December 16 after media reports claimed the implementation of a five-day work week for banks. However, since there has been no official announcement confirming the same, banks will remain open today and will function as normal days.

One must note that apart from regional holidays which are state-specific and national holidays, banks are closed every Sunday and the Second and fourth Saturday of each month.

One must note until there is a 5-day work week confirmation for bank employees by official sources, public sector banks will continue to follow the same old pattern where apart from Sunday, there is a bank holiday on the 2nd and 4th Saturday of every month.

It is always good to keep track of the bank holiday calendar so that your financial tasks are completed on time and there is no delay. There is no point in visiting a bank branch on a bank holiday just because you did not check the holiday calendar of banks.

According to the Reserve Bank of India's (RBI) bank holiday calendar, next week apart from designated Saturdays and Sundays, in select states, banks will remain closed on December 18 (Death Anniversary of U SoSo Tham), December 19 ( Goa Liberation Day). It is worth mentioning that bank holidays are not the same across all the states in India but differ from one state to another depending on regional holidays announced by respective state governments.

Consensus Built On 17% Salary Hike For Bank Employees

After a long wait, the Indian Banks Association (IBA) and other bank unions last week finally built a consensus on wage revision and agreed to an increase of 17% in salaries annually for five years beginning fiscal 2021-22, according to a statement issued on December 7. The wage revision will be effective from 1.11.2022 for a period of five years.

A Memorandum of Understanding (MoU) has been signed between the Indian Banks' Association representing the Management of Banks that are parties to the Bipartite Settlement and United Forum of Bank Unions, other Unions, and Associations on the basis of discussions held on 7th December 2023 on wage revision. As per the MoU, an annual increase in salary and allowances is agreed at 17 %, of the annual pay slip expenses for FY 2021-22, which works out to Rs. 12,449 crores for all public sector banks including SBI.

Though public sector bank employees have received a hike in salary, however, it is yet not certain if their demand for 5-day work will be heard. It is worth mentioning that the unions have been demanding that all Saturdays should be announced as public holidays for banks before they sign the wage agreement.

Thus, the unions will only sign the final agreement when the five-day workweek decision is announced. The annual increase in salary and allowances of bank employees will be at 17% of annual pay slip expenses for FY22, amounting to roughly Rs 12,449 crore for all public sector banks, including State Bank of India (SBI).

According to the MoU, "The new pay scales will be constructed after merging Dearness Allowance corresponding to 8088 points (average Index point as applicable for the Quarter of July, August and September 2021) to the basic pay as on 31.10.2022, and adding thereon a loading of 3 %, amounting to Rs 1795 crore."