State Bank of India
PSU banks at risk of rating downgrades on rising bad loan provisions: S&P. Picture: A customer walks out of a State Bank of India (SBI) branch in Mumbai March 31, 2015Reuters

Come September nationalised banks across the country will remain closed on second and fourth Saturdays of every month, as the government cleared a "long-pending" proposal made by the banking employees.

"The notification regarding Saturday off has come. It is effective from September 1," All India Bank Employees' Association (AIBEA) general secretary CH Venkatachalam told PTI.

Currently, both the public and private sector banks remain open for half day on Saturdays.

"This is a welcome move. This will be a big relief to employees and I hope that this will improve the productivity of employees," he said.

Banks will only be shut on second and fourth Saturdays even if a month has a fifth Saturday.

"As of now, they are working on all Saturdays from 10 am to 2 pm. Beginning September, they will have two alternate Saturdays as holidays and have to work from 10 am to 5 pm on the first and third Saturdays," said Venkatachalam.

With the new regulation come into force from next month, the first Saturday holiday for bank employees will fall on 12 September, which is the second Saturday of the month.

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