The Government of India has addressed an unstarred question in the Lok Sabha about the proposed implementation of a 5-day work week for banks, raised by Shri K C Venugopal.
Indian Banks’ Association (IBA) has submitted a proposal to declare all Saturdays as banking holidays.
As per the Minister of State for Finance, Shri Pankaj Chaudhary, the existing rule—declaring the second and fourth Saturdays of every month as holidays—was established via a government notification dated 20.08.2015 under Section 25 of the Negotiable Instruments Act, 1881.
Public Sector Banks (PSBs) are independent, board-governed entities responsible for managing their own manpower based on business needs.
The government clarified that staffing levels and recruitment in PSBs are managed independently by each bank, considering business volume, retirement, attrition, and operational needs.
As of 31.03.2025, 96% of PSB staff positions are filled.
The remaining 4% gap is attributed to natural attrition such as superannuation and unplanned exits. The government has not yet announced a concrete timeline for implementing the full 5-day week proposal.
No official rollout date for the 5-day banking week has been declared yet.
Source: Ministry of Finance, Lok Sabha QA No. 1237 – 28 July 2025
