Will banks soon have a 5-day working week? Here’s what the government has said

The government has clarified its position on the Indian Banks’ Association (IBA) proposal to implement a 5-day work week for banks. In a written reply in Lok Sabha on July 28, 2025, the Ministry of Finance confirmed that the IBA has proposed to declare all Saturdays as banking holidays.

While the proposal is under consideration, public sector banks (PSBs) currently follow a system where only the second and fourth Saturdays are official holidays. The government also addressed concerns regarding staff shortages and provided an update on manpower availability in PSBs.

New UPI rules from August 1: Daily balance checks, autopay & API usage now regulated, here’s how Paytm, PhonePe, GPay users will be impacted

What is the proposal of a 5-day banking week?

The All India Bank Officers' Confederation (AIBOC) has proposed making all Saturdays a holiday, citing it as a standard for enhancing productivity, growth, efficiency, and promoting an ethical workplace.


ET Wealth Online breaks down the government's official response to four key questions on the proposal of a 5-day work week for banks.

Member of Parliament K C Venugopal raised several questions about the IBA’s proposal for a 5-day banking week, its implementation, shortage of banking staff, and more.

August bank holidays list: Check state wise bank holidays in August 2025

(a) the action taken by the Government on the IBA proposal for a 5-day banking week;
(b) whether the Government is considering to implement the proposal and if so, the details thereof;
(c) whether it is a fact that the proposal is pending due to shortage of banking staff in the public sector banks;
(d) if so, the steps taken by the Government to address the shortage of staff in banks; and (e) whether the Government has any plans for the roll out of the newly proposed 5-day banking week and if so, the timeline fixed for the same?

The government replied to the aforementioned questions in Parliament :
Indian Banks’ Association (IBA) has submitted a proposal to declare all Saturdays as a banking holiday. In regard to the Saturdays being public holiday, subsequent to 10th Bipartite settlement/ 7th Joint note signed between IBA and Workmen Unions/Officer Associations, Government, in exercise of powers conferred by section 25 of the Negotiable Instruments Act, 1881, vide notification dated 20.8.2015, had declared the second and the fourth Saturdays of every month as public holiday for banks in India.
Further, Public Sector Banks (PSBs) are board governed commercial entities. The requirement of manpower in each PSB is determined by the respective PSB keeping in view various factors which include, inter-alia, business requirement, spread of activities, superannuation and other unplanned exits. Appointment of officers and staff is done accordingly by the PSBs and it varies from year to year based on their requirements. As per inputs received from PSBs, as on 31.03.2025, 96% staff are in position against their business requirement. The small proportion of gap is attributable to attrition on account of superannuation and other usual factors including unplanned exits.