**Summary:**
This document summarizes the Indian government's response to Lok Sabha Unstarred Question No. 1237 regarding the proposal for a 5-day banking week, as answered on July 28, 2025. The Indian Banks Association (IBA) has proposed declaring all Saturdays as banking holidays. The government, referencing a notification dated August 20, 2015, issued under Section 25 of the Negotiable Instruments Act, 1881, already designates the second and fourth Saturdays of each month as public holidays for banks, subsequent to the 10th Bipartite settlement / 7th Joint note signed between IBA and Workmen Unions/Officer Associations. The response clarifies that Public Sector Banks (PSBs) are responsible for determining their manpower needs based on business requirements, activities, superannuation, and attrition. As of March 31, 2025, PSBs reported having 96 staff in position. The government attributes any minor staffing gaps to standard attrition factors. The document does not provide a timeline for the implementation of a 5-day banking week.
Key Entities Referenced
Ministry of Finance: A department of the Government of India responsible for financial matters.
Lok Sabha: The lower house of the Parliament of India.
Shri K C Venugopal: A member of parliament who raised a question about the 5-day banking week proposal.
Indian Banks Association (IBA): An association of banks in India that submitted the proposal for a 5-day banking week.
Negotiable Instruments Act, 1881: An act of the Parliament of India relating to promissory notes, bills of exchange and cheques.
Public Sector Banks (PSBs): Banks in India in which the government owns a majority stake.
Shri Pankaj Chaudhary: Minister of State in the Ministry of Finance who provided the answer to the parliamentary question.
20.8.2015: Date of notification declaring the second and fourth Saturdays of every month as public holiday for banks in India.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
UNSTARRED QUESTION NO. 1237
ANSWERED ON MONDAY, 28 JULY, 2025 / 6 SRAVANA, 1947 (SAKA)
PROPOSAL OF 5-DAY WEEK FOR BANKS
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?
ANSWER
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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