When will 5-day banking be implemented for bank employees?

There is no confirmed implementation date as of August 2026. The 12th Bipartite Settlement included 5-day banking in principle, subject to government notification. It is now a top-priority demand for the 13th Bipartite Settlement (effective November 2027). The government may notify it independently before the 13th BPS, or it may be formalised as part of that settlement.

Which unions are demanding 5-day banking?

All major bank employee unions — including AIBEA, NCBE, BEFI, INBEF, and officer unions like AIBOC and AIBOA — have been consistently demanding 5-day banking. The demand has been on the charter of demands since the 11th Bipartite Settlement. It was partially accepted in the 12th bipartite (in principle) and is expected to be a core demand for the 13th bipartite.

Will 5-day banking affect bank employees' salary?

5-day banking will not reduce bank employees' salary. The working hours per week will remain the same — the total weekly hours (approximately 40 hours) will be redistributed across 5 days instead of 6. Employees may be required to work slightly longer hours Monday to Friday in exchange for the full Saturday off. There is no pay cut involved.

Does 5-day banking apply to all banks?

The 5-day banking demand applies to all public sector banks (PSBs) covered under the IBA Bipartite Settlement. Private sector banks and Regional Rural Banks (RRBs) are not directly covered by this settlement, though private banks often follow similar practices. RRBs are covered by a separate NABARD-mediated bipartite settlement.

What is the current status of 5-day banking as of 2026?

As of August 2026, the status is: agreed in principle in the 12th Bipartite Settlement (signed March 2024), pending a separate government notification. The notification has not been issued. Bank employees continue to work a 6-day week with the second and fourth Saturdays as designated weekly offs. Full Saturday off is not in effect.

Not Yet Implemented12th BPS — Agreed in PrincipleUpdated Aug 2026

5-Day Banking for Bank Employees

Q: Is 5-day banking implemented for bank employees in India?

No. As of August 2026, 5-day banking has NOT been implemented. It was agreed in principle during the 12th Bipartite Settlement (signed March 2024) but requires a separate government notification under the Negotiable Instruments Act and Banking Regulation Act. That notification has not been issued as of August 2026.

Q: What is 5-day banking?

5-day banking means public sector bank branches and offices would operate on a 5-working-day week (Monday to Friday), with Saturday and Sunday as weekly offs. Customers would still be able to access banking services through ATMs, net banking, mobile banking, and UPI on Saturdays and Sundays. Branch counter services would not be available on Saturdays under this arrangement.

Current Status · Why It Is Delayed · Implementation Timeline · Impact on Employees & Customers

Five-day banking was agreed in principle during the 12th Bipartite Settlement (signed March 2024) — but as of August 2026, it has not been implemented. A separate government notification is required. Here is the complete picture: what it means, why it is stuck, and what comes next.

Current Status

Pending

Agreed In

12th BPS

Current Saturdays Off

2nd & 4th

Next Settlement

Nov 2027

⏳

Current Status — August 2026

The 12th Bipartite Settlement (signed 8 March 2024) included 5-day banking in principle, subject to a separate government notification. The Ministry of Finance has not yet issued this notification. Bank employees continue to work a 6-day week with 2nd and 4th Saturdays as weekly offs. The 1st, 3rd, and 5th Saturdays remain working days.

What Is 5-Day Banking?

5-day banking refers to a working arrangement under which public sector bank branches and offices operate only from Monday to Friday, with Saturday and Sunday as weekly offs for all employees.

Under the current arrangement, bank employees work 6 days a week — Monday to Friday plus every working Saturday (1st, 3rd, and 5th Saturdays are working days; 2nd and 4th Saturdays are off since 2018).

Under 5-day banking, the total weekly working hours would remain the same — approximately 40 hours. The hours currently spread across 6 days would be redistributed across 5 days, meaning employees would work slightly longer hours each weekday (from approximately 7.5 hours to 8 hours per day in a typical arrangement).

Current Arrangement

Monday to Friday: 6 days working
2nd & 4th Saturdays: Weekly off
1st, 3rd, 5th Saturdays: Working
~6 working Saturdays per month

Under 5-Day Banking

Monday to Friday: 5 days working
All Saturdays: Weekly off
All Sundays: Weekly off
No change in total weekly hours

Timeline — History of the 5-Day Banking Demand

Pre-2015

Demand

5-day banking demand first raised

Bank unions began formally demanding a 5-day working week, citing comparable practices in government offices and improved work-life balance for employees.

2015

Not Agreed

11th Bipartite Settlement

The demand was raised but not included in the 11th Bipartite Settlement. The 2nd and 4th Saturdays were granted as offs, but 1st and 3rd Saturdays remained working days.

2018

Partial Win

2nd & 4th Saturday offs implemented

Government notification made the 2nd and 4th Saturdays weekly offs for public sector banks. This was a step toward 5-day banking but not the full demand.

Mar 2024

Agreed in Principle

12th Bipartite Settlement signed

5-day banking was included in the 12th Bipartite Settlement in principle — subject to a separate government notification under relevant statutes. This was the first formal inclusion of the demand in a signed settlement.

Aug 2026

Pending

Government notification still pending

As of August 2026, the government has not issued the required notification. Bank employees continue to work 6 days a week.

Nov 2027+

Upcoming

13th Bipartite Settlement due

If government notification does not come before November 2027, 5-day banking will be a top-priority demand in the 13th Bipartite Settlement negotiations.

Why Has 5-Day Banking Not Been Implemented Yet?

Government Notification Required

The 12th Bipartite Settlement is a private agreement between IBA (representing banks) and unions. Changing bank working days requires amendments to government notifications under the Negotiable Instruments Act (NI Act) and RBI guidelines. The Ministry of Finance must issue a gazette notification — the bipartite agreement alone is insufficient.

Saturday is a Business Day under NI Act

The Negotiable Instruments Act designates Saturday as a public day of business for banks. Changing this requires a formal legal amendment or notification — it cannot be done by IBA and unions alone through a bipartite settlement.

Customer Service Concerns

The government and RBI have expressed concern about the impact on customers, particularly in semi-urban and rural areas where digital banking penetration is lower and Saturday is a key banking day for farmers, small traders, and self-employed individuals.

Coordination with Clearing System

Saturday clearings for cheques, DDs, and ECS mandates are processed through RBI's clearing systems. Moving to a 5-day banking week requires coordination with the entire clearing and settlement infrastructure — a complex multi-agency exercise.

Political Considerations

Any move that reduces banking access hours is politically sensitive. Government banks serve a large part of India's population. Any reduction in in-person service availability on Saturdays requires careful political handling — particularly in election cycles.

Impact of 5-Day Banking — Employees, Customers, and Banks

👩‍💼

Bank Employees

→Full Saturday and Sunday off — improved work-life balance
→Total weekly working hours remain the same (~40 hrs); hours redistributed across 5 days
→No reduction in salary or allowances
→Potential increase in daily working hours (e.g., 8 hrs → ~9.6 hrs Mon–Fri)
→Reduced commuting cost by approximately 17% (52 fewer commute days per year)

🏦

Bank Customers

→Branch counters closed on Saturdays
→ATMs, net banking, UPI, and mobile banking available 24/7 on all days
→NEFT and RTGS settlements already run on all days including Sundays (since 2019)
→Time-sensitive transactions (cheque clearance, DD encashment) will need to be planned for weekdays
→Extended weekday counter hours likely to compensate for Saturday closure

🏛️

Banks / IBA

→Operational cost savings on infrastructure, utilities, and branch overheads on Saturdays
→Need to ensure adequate staffing for extended weekday hours
→Alignment with central government office timings — easier for government-linked banking operations
→Clearing cycles and forex market alignment adjustments required

Next Steps

13th Bipartite Settlement — 5-Day Banking Top Priority

Learn about the 13th bipartite settlement, the DFS 12-month deadline, and why 5-day banking is expected to be finalised by 2028.

Read 13th Bipartite Guide →

Frequently Asked Questions — 5-Day Banking

Is 5-day banking implemented for bank employees in India?▼

No. As of August 2026, it has NOT been implemented. It was agreed in principle in the 12th Bipartite Settlement but requires a separate government notification that has not been issued.

When will 5-day banking be implemented?▼

There is no confirmed date. The government may notify it independently before the 13th Bipartite Settlement (November 2027), or it may be formalised as part of that settlement.

What is the current Saturday holiday schedule for bank employees?▼

As of August 2026: 2nd and 4th Saturdays are weekly offs. 1st, 3rd, and 5th Saturdays are working days. This has been in effect since 2018.

Will 5-day banking affect customers?▼

Branch counters will be closed on Saturdays. However, ATMs, net banking, NEFT, RTGS, UPI, and mobile banking will be available 24/7 on all days. Most banking needs in 2026 are already met digitally.

Will bank employees' salary change with 5-day banking?▼

No. Salary, DA, HRA, and all allowances remain unchanged. Total weekly hours remain the same; they are distributed across 5 days instead of 6.

Which banks will come under 5-day banking?▼

All PSBs covered under IBA Bipartite Settlement: SBI, PNB, Bank of Baroda, Canara Bank, Union Bank, Bank of India, Indian Bank, and others. Private banks and RRBs are not directly covered.

Is 5-day banking a demand for the 13th Bipartite Settlement?▼

Yes. It is expected to be the single highest-priority demand in the 13th Bipartite Settlement negotiations, alongside the 25–30% wage revision demand.

Related — Bipartite Settlement Resources

→

13th Bipartite Settlement 2027

Effective date, DFS deadline, NCBE demands, expected wage hike

→

Complete Bipartite Settlement Guide

All 12 settlements, DA mechanism, pay scales explained

→

12th Bipartite Salary Calculator

Grade-wise take-home — basic, DA 27.83%, HRA, PF

→

DA Rates for Bank Employees