Union Government Responds to 5-Day Banking Week Proposal in Lok Sabha

Union Government Responds to 5-Day Banking Week Proposal in Lok Sabha

New Delhi: Government of India has officially responded to the proposal regarding the implementation of a 5-day banking week in India.

In a reply to Unstarred Question No. 1237 in the Lok Sabha on 28th July 2025, the Ministry of Finance confirmed that the Indian Banks’ Association (IBA) has submitted a proposal to declare all Saturdays as banking holidays in India.

Also Read:- Good News for Defence Personnel! Government recommended increasing the gratuity limit to ₹25 lakhs after the dearness allowance rises to 50% of the Basic Pay

Currently, Indian banks have the second and fourth Saturdays of every month as public holidays. This rule came into effect through a notification issued in August 2015, following the 10th Bipartite Settlement and the 7th Joint Note signed between IBA and banking unions. But the Indian Banks’ Association has now proposed for a 5 days work week.

What does Union Government Say

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.

The proposal for a full 5-day workweek for banks is under consideration.

Also Read:- RBI News! Reserve Bank of India advises this to banks to prevent cyber frauds, check what has RBI said in its advisory