Saturday Bank Holiday: Why Are Banks Closed on 2nd and 4th Saturdays? Know Why February 7 Is a Working Day for Indian Banks

Mumbai, February 7: As of February 2026, the standard operating schedule for Indian banks remains a mix of active and non-working Saturdays, a system that has been in place for over a decade. Under current Reserve Bank of India (RBI) regulations, all public and private sector banks in India observe holidays on the second and fourth Saturdays of every month. Conversely, the first, third, and fifth Saturdays (in months with five Saturdays) are regular full working days. This distinction is critical for millions of customers who rely on physical branch visits for high-value transactions or administrative tasks.

The '2nd and 4th Saturday' Rule Explained

The current Saturday holiday structure was officially implemented on September 1, 2015, following an agreement between the Indian Banks’ Association (IBA) and the Government of India. Before this reform, banks operated for a half-day every Saturday, which often led to confusion and lower productivity for staff. Bank Holiday Today, February 7, 2026? Know If Banks Are Open or Closed This Saturday.

The system was designed to provide bank employees with a better work-life balance while ensuring that essential banking services remained accessible to the public during the alternate weeks. This rule is governed by the Negotiable Instruments Act, 1881, which means that during these holidays, financial instruments like cheques cannot be cleared, and Real-Time Gross Settlement (RTGS) services are typically suspended.

Update on the Five-Day Work Week Demand

Despite the existing structure, the Indian banking sector is currently witnessing a push for a transition to a complete five-day work week. In January 2026, the United Forum of Bank Unions (UFBU) launched a nationwide strike to demand that all Saturdays be declared holidays. While the IBA and bank unions reportedly reached a consensus on this move during the 12th Bipartite Settlement in 2024, the final implementation is still awaiting official notification from the Ministry of Finance. Until this notification is issued, the 2nd and 4th Saturday holiday rule remains the law of the land.

Digital Banking: Working 24/7

While physical branches close on designated Saturdays and Sundays, the RBI and commercial banks have ensured that digital infrastructure remains uninterrupted. Most modern banking needs can be met through:

Real-time Payments: UPI (Unified Payments Interface) and IMPS (Immediate Payment Service) function 24/7, including holidays.

Online Transfers: NEFT transfers are processed in batches even on most holidays, though RTGS follows the branch calendar.

ATM Services: Cash withdrawals and deposits through kiosks are generally unaffected by the Saturday holiday schedule. Bank Holidays in February 2026: Banks To Remain Closed for 9 Days Next Month; Check Full List Here.

Upcoming Saturday Holidays in February 2026

For the current month, commuters and business owners should note the following non-working days:

• February 7 (Today): Working Day (1st Saturday)
• February 14: Bank Holiday (2nd Saturday)
• February 21: Working Day (3rd Saturday)
• February 28: Bank Holiday (4th Saturday)

Today, Saturday, February 7, is a regular working day for all public and private sector banks across India. As it is the first Saturday of the month, bank branches are operating at full capacity during their standard business hours. According to the Reserve Bank of India (RBI) guidelines, banks only observe holidays on the second and fourth Saturdays of each month.

(The above story first appeared on LatestLY on Feb 07, 2026 12:59 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).