Bank employees and associations are demanding a significantly longer five-day working day. Banks may implement a five-day working day by 2026. This proposal is now formally under government consideration.
Add informalnewz.com as a Preferred Source
5 Days Working in Banks: Bank employees and associations are demanding a significantly longer 5-day working week. A 5-day working day system may be implemented in banks by 2026. This proposal is now formally under consideration by the government. The Finance Ministry informed the Lok Sabha on July 28, 2025, that the Indian Banks’ Association (IBA) had submitted a proposal to declare all Saturdays as bank holidays. This would result in a five-day working week in the banking sector. Banks would remain open from Monday to Friday, and closed on all Saturdays and Sundays.
What is the 5-day banking week proposal?
The bank association has suggested keeping banks closed every Saturday and Sunday. This would require employees to work from Monday to Friday. However, to maintain consistent weekly hours, employees can work approximately 40 minutes more on all five days of the week. The union says this will not impact customer service. AIBOC believes this will boost employee morale and improve work quality. This will improve quality in the banking sector.
What has happened so far?
The demand for a five-day working day gained momentum in March this year when the IBA and major bank unions signed a joint note recommending it to the government. In July 2025, the Finance Ministry informed Parliament that the proposal was still under consideration. Earlier in April 2025, the Ministry had indicated that the proposal was unlikely to be implemented in the financial year 2025–26. This change requires approval from both the Finance Ministry and the RBI, and neither has yet given final approval.
How is the banking system currently?
Banks currently operate under regulations implemented in August 2015. According to this, banks are closed on the second and fourth Saturdays of every month. On other Saturdays, banks are open and operate as normal working days.
Is the delay due to staff shortages?
The government has clarified that staff shortages are not the reason for the proposal’s delay.
Responding to a question from Congress MP K.C. Venugopal, the Finance Ministry stated that 96% of positions in public sector banks are filled. The remaining vacancies have arisen due to normal retirements and other unregulated reasons. However, these are not considered an obstacle to the proposal.
When will the 5-day banking week begin?
No final date has been set for implementing this proposal. The proposal is under review by both the government and the RBI.
