PROPOSAL OF 5-DAY WEEK FOR BANKS

 GOVERNMENT OF INDIA

MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL8 SERVICES

LOK SABHA UNSTARRED QUESTION NO. 1237

ANSWERED ON MONDAY, 28 JULY, 2025 / 6 SRAVANA, 1947 (SAKA)

1237. SHRI K C VENUGOPAL:

Will the Minister of FINANCE be pleased to state:

• (a)
  the action taken by the Government on the IBA proposal for a 5-day banking week;
• (b)
  whether the Government is considering to implement the proposal and if so, the details thereof;
• (c)
  whether it is a fact that the proposal is pending due to shortage of banking staff in the public sector banks;
• (d)
  if so, the steps taken by the Government to address the shortage of staff in banks; and
• (e)
  whether the Government has any plans for the roll out of the newly proposed 5-day banking week and if so, the timeline fixed for the same?

MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

• (a)
  to (e): Indian Banks’ Association (IBA) has submitted a proposal to declare all Saturdays as banking holiday. In regard to the Saturdays being public holiday, subsequent to 10th Bipartite settlement/ 7th Joint note signed between IBA and Workmen Unions/Officer Associations, Government, in exercise of powers conferred by section 25 of the Negotiable Instruments Act, 1881, vide notification dated 20.8.2015, had declared the second and the fourth Saturdays of every month as public holiday for banks in India.

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.

As per inputs received from PSBs, as on 31.03.2025, 96% staff are in position against their business requirement. The small proportion of gap is attributable to attrition on account of superannuation and other usual factors including unplanned exits.

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