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The Indian government is considering a proposal for a 5-day work week for public sector banks. Currently, only the second and fourth Saturdays are holidays.
Will 5-day work week for banks be implemented soon?
5-day work week: The government of India has clarified that the proposal of the Indian Banks’ Association (IBA) suggesting a 5-day work week for the public sector banks (PSB) is under consideration. In a written reply in Lok Sabha on July 28, 2025, Ministry of Finance said that the IBA has proposed to declare all Saturdays as holidays in banks for PSBs, according to a report of Economic Times.
As of now PSBs follow a system where only the second and fourth Saturdays are official holidays.
The ET report added that MP K C Venugopal had asked the government about the Indian Banks’ Association (IBA) proposal, staff shortages, and possible timelines for implementation.
The government hasn’t shared any specific timeline for rolling out the 5-day banking week, according to ET report.
On the question of staffing crunch in Public sector banks, the government said each based decides its staffing based on business needs, retirement, and other factors. As of March 31, 2025, PSBs have 96% of required staff in place. The small gap is due to retirements and other normal exits.
Here’s a simplified summary of the government’s response:
Proposal Status:
The IBA has proposed making all Saturdays bank holidays, moving to a 5-day work week.
Current Situation:
Since 2015, only second and fourth Saturdays are official bank holidays, as per a government notification following the 10th Bipartite Settlement between IBA and bank unions.
Who Decides Staffing Needs:
Public Sector Banks (PSBs) are managed by their own boards. Each bank decides its staffing based on business needs, retirements, and other factors.
Staff Shortage Issue:
As of March 31, 2025, PSBs have 96% of required staff in place. The small gap is due to retirements and other normal exits.
Implementation Timeline:
The government did not share a fixed timeline for rolling out the 5-day banking week.
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A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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