The Reserve Bank of India (RBI) has revised the bank holiday calendar, making changes that will directly impact banking operations across several states. The bank holiday originally scheduled for September 5, 2025, has been canceled, and in its place, RBI has declared a new holiday on the same date under the Negotiable Instruments Act, 1881.
This change is crucial for customers, businesses, and institutions that rely on banking services, as it affects transactions such as cheque clearance, RTGS, NEFT, and other financial settlements.
Why the Change in Holiday Matters
Bank holidays in India are declared under three categories – Negotiable Instruments Act, Real-Time Gross Settlement (RTGS) Holidays, and Banks’ Closing of Accounts. Any changes by RBI directly impact financial transactions across the country.
For customers, this means:
Bank Branches Closed in Select States: Physical transactions like cash deposits, withdrawals, and cheque clearance may be impacted.
Digital Transactions Remain Unaffected: Internet banking, UPI, ATM services, and mobile banking will function as usual.
Business Planning: Companies need to reschedule financial activities such as cheque issuance or settlement to avoid delays.
States Affected by the Holiday Change
The RBI has notified that the revised holiday will be applicable in specific states and regions. Customers in these states should confirm the updated holiday list with their respective banks.
Key Takeaway
The RBI’s decision to cancel the earlier scheduled bank holiday for September 5, 2025, and replace it with a new one under the Negotiable Instruments Act highlights the importance of staying updated with banking notifications. Customers and businesses are advised to plan their financial transactions accordingly.
FAQs
Q1. Why did RBI cancel the September 5, 2025 bank holiday?
The RBI revised its calendar and declared a new holiday on the same date under the Negotiable Instruments Act, affecting banking operations.
Q2. Will ATMs and UPI services work on the new holiday?
Yes, ATMs, UPI, mobile banking, and internet banking will function as usual despite the bank holiday.
Q3. Which banking services are impacted on the holiday?
Physical branch operations, cheque clearance, and RTGS/NEFT settlements may be delayed.
Q4. Does the bank holiday apply across India?
No, it applies only to select states as per the RBI’s notification. Customers should check their state-specific holiday list.
Q5. How should businesses prepare for the change?
Companies should plan transactions such as cheque deposits and settlements in advance to avoid delays due to the holiday.
Published on : 5th September
Published by : SMITA
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