Banks May Soon Operate Only 5 Days a Week, Shut for 2 Days — Awaiting RBI’s Final Decision

Proposal for five-day workweek in banking sector awaits RBI and government nod

India’s banking landscape may soon undergo a significant change as discussions progress on implementing a five-day workweek in both public and private sector banks. If approved, banks across the country will operate from Monday to Friday, remaining closed on both Saturday and Sunday—marking a major shift from the current schedule.

Proposal Gains Momentum

Bank employee unions have long advocated for a five-day workweek, citing the need for better work-life balance. The Indian Banks’ Association (IBA) has reportedly reached an agreement with various banking unions on this new working model. However, the final decision lies with the Reserve Bank of India (RBI) and the central government, who have yet to make an official announcement.

According to sources, the All India Bank Officers’ Confederation (AIBOC) had submitted this proposal to the Finance Ministry and Prime Minister’s Office as early as last year. The proposal aims to introduce parity with global banking practices and enhance employee well-being.

Likely Changes in Timings

To compensate for the additional day off, daily banking hours are expected to be extended slightly. Most banks currently operate from 9:30 AM to 5:30 PM. Under the proposed structure, revised working hours could extend from 9:00 AM to 5:40 PM or from 9:45 AM to 5:30 PM, ensuring that productivity levels are maintained despite the reduced number of working days.

Background: Saturday Closures Not New

The banking sector has witnessed a similar transition before. In 2015, a regulatory change allowed banks to remain closed on the second and fourth Saturdays of every month. At that time, banks continued operations on the first and third Saturdays. The current proposal builds on that model by standardising weekends as off-days.

Customer Concerns and Solutions

While the shift is seen as a positive development for bank staff, it has raised concerns among customers regarding longer queues and service delays due to one less working day. Experts suggest that this potential inconvenience could be offset by enhancing digital infrastructure and promoting online banking.

Industry insiders anticipate that the five-day model will push banks to scale up mobile banking services, ATM capabilities, and online transaction platforms. Appointment-based systems for in-branch visits and extended working hours are also being considered to smoothen the transition and maintain service quality.

Final Decision Pending

As of now, there has been no official communication from the RBI or the government on the implementation timeline. However, employee unions remain optimistic that a favourable decision will be announced soon.

Until a formal notification is issued, banks will continue to operate under the current six-day structure, with alternate Saturdays off.