Bank Holiday : Banks will have 5 Days Working in the Year 2026, the Government has given Information.
Bank Holiday : Banks and employee associations have been demanding a five-day workweek for a long time. There is a possibility that a five-day working system may be implemented in banks in 2026. This proposal is now formally under consideration by the government.
On 28 July 2025, the Ministry of Finance informed the Lok Sabha that the Indian Banks’ Association (IBA) had submitted a proposal to declare all Saturdays as bank holidays. If implemented, this would result in a five-day working week in the banking sector. Banks would remain open from Monday to Friday, while all Saturdays and Sundays would be holidays.
Bank Holiday : What is the proposal for a five-day banking week?
Bank associations have suggested keeping banks closed on every Saturday and Sunday. Under this system, employees would work from Monday to Friday. However, to maintain the same total weekly working hours, employees may work around 40 minutes extra each day during the five working days.
Bank unions claim that this change will not affect customer service. The All India Bank Officers’ Confederation (AIBOC) believes that the move will boost employee morale, improve work quality, and enhance overall efficiency in the banking sector.
What has happened so far?
In March 2025, the demand for a five-day workweek gained momentum when the IBA and major bank unions signed a joint note and sent their recommendation to the government.
In July 2025, the Ministry of Finance informed Parliament that the proposal is still under consideration.
Earlier, in April 2025, the ministry had indicated that the chances of implementing this proposal in the financial year 2025–26 were low. For the change to take effect, approval from both the Ministry of Finance and the Reserve Bank of India (RBI) is required. So far, neither has given final approval.
What is the current banking system?
At present, banks are operating under rules implemented in August 2015. According to these rules, banks remain closed on the second and fourth Saturdays of every month. Banks are open and function normally on the remaining Saturdays.
Is staff shortage causing the delay?
The government has clearly stated that staff shortage is not the reason for the delay in implementing the proposal.
In response to a question by Congress MP K. C. Venugopal, the Ministry of Finance said that 96% of posts in public sector banks are filled. The remaining vacancies are due to normal retirements and other routine reasons and are not considered an obstacle to the proposal.
When will the five-day banking week start?
So far, no final date has been decided for the implementation of the five-day banking week. The proposal is still under review by both the government and the RBI.