Will banks now remain open only for 5 days? The government gave this answer in Parliament..

The government has clarified its position on the proposal of the Indian Banks Association (IBA). It has been said that banks should work 5 days a week. On July 28, 2025, the Finance Ministry, in a written reply in the Lok Sabha, said that IBA has proposed to declare bank holidays on all Saturdays.

At present, this proposal is under consideration. Currently, government banks (PSBs) have holidays only on the second and fourth Saturdays of the month. Along with this, the government also responded to the concerns raised about the shortage of employees and provided the status of staff in government banks.

What is the proposal for 5 5-day banking week?

All India Bank Officers Confederation (AIBOC) has proposed to declare all Saturdays as holidays. They say that this will increase the productivity, development, and efficiency of employees and will promote a better work culture in offices.

IBA gave an application for all Saturdays off

IBA has proposed to declare bank holidays on all Saturdays. Earlier, after the 10th bilateral agreement and the 7th joint note, an agreement was reached between the IBA and the employees' unions/officers' associations. After this, the government issued a notification on 20 August 2015 under Section 25 of the Negotiable Instruments Act, 1881, and declared public holidays on the second and fourth Saturdays of every month.

Apart from this, government banks are business institutions run by the board. Every bank recruits staff according to its requirements, which takes into account the business needs, expansion of branches, retirement, and vacancies due to other reasons. Officers and staff are recruited year after year according to the needs of the banks. According to the information received from government banks, 96% of the staff are deployed as compared to their requirement till 31 March 2025. Some shortage occurs due to retirement and other unexpected reasons.

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