Bank Holiday Update: Government Mulls Five-Day Workweek for Banks From 2026

The banks of India seem to be on their way to a five-day work week starting in 2026, as the request from employees and unions has been there for quite a long time, and now the government has started to look at it seriously. If the proposal gets the green light, it will be a step towards banks working like those in other sectors where Monday to Friday is the norm for work.

Five-Day Banking Week Under Review

On July 28, 2025, the Ministry of Finance told the Lok Sabha that the Indian Banks’ Association (IBA) has sent a proposal requesting all Saturdays to be declared as bank holidays. This means that banks would function only on weekdays, from Monday to Friday, with Saturdays and Sundays being holidays.

How Will the New System Work?

In the suggested arrangement, the employees of the banks will be doing five days work instead of six. To ensure that the total weekly working hours are not decreased, the employees may be required to do extra 40 minutes in total of the five working days.

The unions of the banks have stressed that there will be no negative impact on customer services owing to the switch. The AIBOC has pointed out that a five-day working week will be beneficial for the employee morale, and therefore, it will also bring forth the better quality work and increased efficiency of the whole banking sector.

What Progress Has Been Made So Far?

• March 2025: The joint note was signed by the IBA and the major bank unions, and they submitted their recommendation for a five-day workweek to the government.
• July 2025: The Ministry of Finance in Parliament declared that the proposal is being actively considered.
• April 2025: The government had earlier signaled that the implementation in the financial year 2025–26 was not likely.

To make this proposal a reality, it is necessary to have the consent of both the Ministry of Finance and the Reserve Bank of India (RBI), without which no final clearance has been granted so far.

Current Banking Schedule

The banks are currently observing the rules that had been set in August 2015. According to this system, banks are closed on the second and fourth Saturdays of each month and operate normally on the other Saturdays.

Is Staff Shortage Delaying the Decision?

The government has emphasized that the delay is not due to any staff shortages. In reply to a question from Congress MP K. C. Venugopal, the Finance Ministry said that about 96% of the positions in public sector banks are filled. The remaining vacancies are due to normal retirements and do not obstruct the proposed change.

When Will the Five-Day Week Be Implemented?

At the moment, there is no official timeline announced. The five-day banking week proposal is still awaiting the government and the RBI's review, and the final decision is expected to be made in the next few months.