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The debate surrounding a five-day working week for bank employees and customers in India remains active. As per the latest updates, the government is looking into the matter and considering offering all Saturdays as bank holidays, but no decision has been made as of yet.
On July 28, 2025, the Ministry of Finance issued a statement in the Lok Sabha that the Indian Banks’ Association has made a proposal for all Saturdays to be bank holidays, as public sector banks currently follow a model in which only the second and fourth Saturdays of the month are holidays, with the first, third, and fifth Saturdays remaining open. The changes are proposed to improve the alignment with other sectors, maximizing employee wellness and productivity.
The All India Bank Officers Confederation has been active in demanding these changes, suggesting that a five-day week would improve productivity, efficiency, and work culture in the banking sector, which is beneficial for all. Their argument is reasonable considering numerous other sectors work Monday to Friday.
The discussion was initiated in Parliament by Congress MP KC Venugopal, who posed multiple relevant questions. These pertained to whether any steps were taken concerning the IBA proposal, whether the government was contemplating its Umsetzung, if understaffing was an issue, what the government was doing to resolve any such understaffing, and whether there was a timeline set for Umsetzung.
In acknowledging the proposal, the Finance Ministry cited the IBA’s proposal and the 2015 bilateral agreement that gave rise to the current holiday arrangement for Saturdays. The ministry further stressed that public sector banks operate as commercial entities, and their boards govern the banks and handle hiring based on the business and operational requirements. Concerning the government’s position on staffing, as of March 31, 2025, public sector banks were reported to have about 96% of their staffing positions filled, with a handful of vacancies due to retirements and transfers that the banks manage on a periodic basis. Most importantly, the government offered the assurance that the proposal is “under consideration” but did not specify any timelines for its possible implementation. It means that employees of banks and customers will have to wait for further official announcements regarding the timeline, if any, for the implementation of, or the significant change proposed.
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