As Diwali approaches, banks across India will observe holiday closures, impacting various banking operations. While festive celebrations bring joy, borrowers and account holders must plan ahead for loan applications, EMIs, and other financial transactions to avoid last-minute disruptions.
Understanding the effect of bank closures on your finances can help ensure smooth processing of loans and timely payments.
Banks Closed: Dates and Duration
Most banks will remain closed on October 22 and 23, 2025, for Diwali holidays.
State Bank of India, ICICI Bank, HDFC Bank, and other major public and private banks will follow similar holiday schedules.
ATMs, online banking, and mobile banking will remain operational, though some transactions may be delayed.
Impact on Loan Applications
Processing Delays: Loan applications submitted during the bank holiday may see delayed verification and approval.
Document Submission: Physical document submissions will not be accepted until banks reopen.
Sanctioning and Disbursal: Loan disbursal and sanctioning will resume only after the holiday, affecting personal, home, and business loans.
Online Applications: Applications via bank websites or apps can still be submitted, but processing will begin after reopening.
EMI Payments and Other Services
EMI Debits: Pre-scheduled EMIs via auto-debit may still be processed if the account has sufficient balance.
Cheque Deposits: Cheque processing will be delayed until the next working day.
Fund Transfers: NEFT/RTGS/IMPS transfers may face delays depending on the bank’s holiday schedule.
Customer Support: Branch-based services will be unavailable; online chat and helplines may operate on limited capacity.
Tips for Borrowers and Customers
Plan Ahead: Submit loan documents and payments before the bank holiday to avoid delays.
Use Digital Channels: Opt for online applications and payments wherever possible.
Check EMI Schedules: Ensure your auto-debit accounts have sufficient balance.
Coordinate with Bank Officials: For urgent loan disbursals, contact your relationship manager in advance.
Avoid Last-Minute Transactions: Physical banking transactions are likely to pile up after reopening, so plan accordingly.
FAQs
Q1: Will online banking services be affected?
Online and mobile banking services will remain operational, but processing of certain requests may be delayed.
Q2: Can I submit a loan application during the holiday?
Yes, applications can be submitted online, but processing will begin only after banks reopen.
Q3: Are auto-debit EMIs safe during bank holidays?
Yes, EMIs scheduled via auto-debit will typically be processed, provided sufficient balance is available.
Q4: What about urgent fund transfers?
NEFT and RTGS transactions will be processed only on the next working day, though IMPS may work with minimal delay.
Q5: How long do bank holidays last during Diwali?
Most banks observe 1–2 days of closure, but it may vary by state and bank policy.
Conclusion
While Diwali is a time of celebration, it’s important for borrowers and account holders to plan ahead for banking holidays. By understanding the impact on loan applications, EMIs, and banking services, you can ensure smooth financial management and avoid last-minute stress.
Using online banking tools, checking EMI schedules, and coordinating with your bank will help maintain financial discipline even during the festive break.
Published on : 20th October
Published by : SMITA
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