Synopsis: Bank employees have long demanded a 5-day working week, and the proposal is now formally under government and RBI consideration. If approved, banks across India may shift to a Monday–Friday schedule by 2026, with all Saturdays declared as official holidays.
5-Day Working Week in Banks: Government Actively Considering Proposal
A major shift may soon come to India’s banking sector. Bank employees and unions have been demanding a five-day working week, and the proposal is now under the active consideration of the Finance Ministry and the Reserve Bank of India (RBI).
On July 28, 2025, the Finance Ministry informed the Lok Sabha that the Indian Banks’ Association (IBA) had submitted a formal proposal to declare all Saturdays as bank holidays.
If approved, banks will operate from Monday to Friday and remain closed on all Saturdays and Sundays.
What Is the Proposed 5-Day Banking System?
Under the proposal:
- Banks will stay closed on all Saturdays and Sundays.
- Employees will work from Monday to Friday.
- To maintain weekly working hours, staff may work 40 minutes extra per day.
Unions argue this system will:
- Improve employee morale
- Enhance work efficiency
- Maintain customer service quality despite shorter weeks
What Progress Has Been Made So Far?
The demand gained momentum in March 2025, when IBA and bank unions jointly recommended the change to the government.
By July 2025, the Finance Ministry confirmed in Parliament that the proposal is under review.
Earlier, in April 2025, it was indicated that the change may not be implemented in FY 2025–26.
Both Finance Ministry and RBI approval are required, and neither has issued a final decision yet.
How Does the Current Banking Schedule Work?
Under the rules implemented in August 2015:
- Banks are closed on 2nd and 4th Saturdays of each month.
- All other Saturdays are regular working days.
Is Staff Shortage Causing the Delay?
The government has clarified that staff shortages are not the reason for the delay.
Responding to MP K.C. Venugopal, the Finance Ministry reported:
- 96% of positions in public sector banks are filled.
- Vacancies are due to normal retirements and routine factors.
- Staffing levels are not an obstacle to adopting a 5-day week.
When Will the 5-Day Banking Week Begin?
There is no final date yet.
The proposal is still under examination by the Finance Ministry and the RBI.
If approved, banks may transition to a five-day work model by 2026.
📌 Key Takeaway
India may soon see a five-day banking week, with all Saturdays becoming official holidays. The government and RBI are reviewing the proposal submitted by the IBA. While approval is pending, a shift to Monday–Friday banking could begin as early as 2026.
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