The Union finance ministry has indicated that the proposed policy of a five-day banking week will not be implemented in 2025-2026 (FY26), citing potential disruptions to banking operations, according to sources.
A senior government official said: "While discussions with the Indian Banking Association are ongoing, the five-day banking initiative is unlikely to come into effect this year."
Such a change could negatively impact banking services, particularly on Saturdays, which is a critical day for many customers to complete their banking transactions, the official added.
"Many customers prefer to visit branches on Saturdays for their physical banking needs, even with the increasing digital presence," the official noted, stressing on the importance of maintaining in-branch service.
The issue is compounded by the current challenges in the banking sector, especially the difficulties banks face in acquiring and retaining deposits. The official pointed out that efforts to boost business through door-to-door campaigns and physical presence have become vital to maintaining growth.
The comments follow calls from bank employees' unions for the implementation of a five-day work week. In March 2024, the All India Bank Officers' Confederation (AIBOC) raised concerns, stating that the unions had consistently demanded that the IBA ensure the introduction of a five-day work week as part of the Bipartite Settlement.
The unions had signed a memorandum of understanding with the IBA in December 2023, calling for Saturdays to be declared holidays under the Negotiable Instruments Act.
AIBOC said that IBA had recommended the proposed change to the government, which is now awaiting approval from the Reserve Bank of India and the Centre.
Harsh Kumar, Business Standard
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