5 Day Week for Banks: Will Banks Get Saturday Holidays?
Work–life balance has become a priority across industries, and bank employees are hoping to join the shift. The long-standing demand for a five-day banking week is now officially before the government, with fresh clarity emerging on where things stand. In a written reply to Parliament on July 28, 2025, the Ministry of Finance confirmed that the Indian Banks’ Association (IBA) has submitted a proposal to declare all Saturdays as banking holidays.
What Is the Proposed Five-Day Banking Week?
The proposal aims to make all Saturdays and Sundays bank holidays, effectively creating a Monday–Friday work schedule for all banks in India.
To ensure weekly working hours remain unchanged, employees may see their daily work time extended by around 40 minutes, Monday through Friday. However, bank unions have stressed that customer service hours will not be reduced.
The All India Bank Officers’ Confederation (AIBOC) believes the move would improve employee morale, increase productivity, and bring banking work culture in line with global standards.
How Did We Get Here?
Momentum picked up earlier this year in March after the IBA and major bank unions signed a joint note supporting the five-day workweek. This was submitted to the Government of India for approval.
In July 2025, the Finance Ministry informed the Lok Sabha that the proposal is still “under consideration.”
However, the ministry had previously indicated in April 2025 that a five-day week was unlikely to be implemented in the 2025–26 financial year. Both the Finance Ministry and the Reserve Bank of India (RBI) need to sign off before any change can be enforced—something that hasn’t happened yet.
What Is the Current System?
Banks presently follow a structure introduced in August 2015, under which:
- Second Saturday – Holiday
- Fourth Saturday – Holiday
- All other Saturdays – Working days
The new proposal seeks to convert all Saturdays into weekly holidays, bringing uniformity across the banking sector.
Is Staff Shortage Holding Back the Decision?
No, says the government. Responding to MP K. C. Venugopal, the Finance Ministry clarified that staffing issues are not delaying the proposal.
As of March 31, 2025, public sector banks reported 96% of sanctioned posts filled, with the remaining vacancies attributed to routine attrition such as retirements and unexpected exits. The ministry stated that staffing levels have not been cited as a hurdle in approving the five-day week.
When Will Banks Switch to a Five-Day Week?
For now, there is no confirmed timeline. The proposal is still being examined, and neither the Finance Ministry nor the RBI has given final approval.
Until an official decision is announced, banks will continue with the existing system of holidays on second and fourth Saturdays.
