Finance Ministry directs PSBs to address staff stress, long hours, and manpower gaps

New Delhi: In a significant move toward improving workplace conditions, the Ministry of Finance has instructed public-sector banks (PSBs) to develop immediate action plans to tackle employee stress, excessive working hours, and staffing shortages.
The directive underscores the government’s growing focus on mental and physical well-being within the banking workforce and aims to promote a more sustainable and supportive work environment across state-run institutions.
According to reports, the ministry’s intervention follows months of representations from bank unions and officers’ associations, who have raised concerns about rising workloads, expanding non-banking responsibilities, and ambitious business targets.
The Finance Ministry has directed bank boards to identify corrective measures and implement strategies to balance productivity with employee welfare. The communication reportedly highlights that overworked staff can negatively affect both service quality and operational efficiency, urging managements to adopt a more human-centric approach.
As part of the ongoing EASE (Enhanced Access and Service Excellence) Reforms, several PSBs have already started conducting quarterly Employee Health Index surveys to monitor staff well-being and identify key stress factors. Insights from these assessments are expected to inform wellness initiatives, digital counselling programmes, and leadership-development efforts.
Bank unions have welcomed the directive, calling it an overdue acknowledgment of workplace challenges such as extended hours, increasing performance targets, and limited manpower. Senior officials from PSBs have also affirmed that employee welfare, gender inclusivity, and leadership capacity building will remain priorities under upcoming reform measures.
The latest phase of the EASE 8.0 reform framework emphasizes employee support, mentorship, and sustainable work practices, aligning business goals with the need for healthier work-life balance.
The Finance Ministry’s latest directive marks a notable shift toward human-centric governance in India’s public banking sector. By recognizing employee well-being as a key driver of efficiency, the government aims to build a resilient and motivated workforce across all PSBs.
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