look news india
Half of the festive month of August has been completed, but if important work related to your bank like check clearance, making draft, KYC update or heavy cash transaction is still pending, then this news is very important for you. According to the official bank holiday calendar released by the Reserve Bank of India (RBI), in the remaining 15 days of August, bank branches will remain locked for a total of 7 days including various festivals and weekly holidays in different states of the country.
The second half of August coincides with the holidays of Rakshabandhan, Eid-e-Milad/Baravfat, Onam, Parsi New Year and anniversaries of regional great men, as well as the fourth Saturday of the month and regular Sundays. In such a situation, a ‘long weekend’ like situation is being created in many states due to banks being closed for two to three consecutive days. If you go straight to the branch without checking the holiday list, you may face closed gates and your precious time may get wasted.
Classification of RBI holiday list: How are bank holidays decided?
The Reserve Bank of India (RBI) classifies holidays for all scheduled commercial banks (public, private, regional rural and co-operative banks) across the country into three major categories:
-
Holidays under Negotiable Instruments Act: This includes national holidays and major religious and cultural festivals, on which banking operations remain closed in most states.
-
Real-Time Gross Settlement (RTGS) Holidays: During this period, large fund transfer and settlement processes at the central level are affected.
-
Banks’ Closing of Accounts: It usually comes into effect at the end of the financial year.
Additionally, all banks across the country remain compulsorily closed on the second and fourth Saturdays and all Sundays of every month. It is important to note that many festivals are celebrated at the regional level, so bank closure in one state does not necessarily mean that banks will remain closed in the entire country.
Complete holiday calendar of last 15 days of August: Know when and where banks will be closed
As per the official notification of RBI and gazette of state governments, the date-wise and state-wise details of bank closure in the remaining days of August are as follows:
-
16 August (Sunday) – Weekly holiday and Parsi New Year (Shahanshahi): All public and private banks will remain closed across the country on Sunday. Along with this, there will also be celebrations of Parsi New Year (Navroz) in states like Gujarat and Maharashtra.
-
19 August (Wednesday) – Maharaja Bir Bikram Kishore Manikya Bahadur Jayanti: There will be a public holiday in all bank branches on this occasion in the state of Tripura.
-
22 August (Saturday) – Fourth Saturday: All banks across India (including SBI, PNB, HDFC, ICICI) will remain closed as per the fourth Saturday rule.
-
23 August (Sunday) – Weekly Holiday: There will be regular weekly holiday for banks in all the states and union territories across the country.
-
25 August (Tuesday) – 1st Onam/Milad-e-Sharif: There will be bank holiday in some parts of Kerala and Andhra Pradesh on the occasion of Onam and Milad-un-Nabi.
-
26 August (Wednesday) – Eid-e-Milad (Baravfat) / Thiruvonam: Banks will remain closed in most states including Uttar Pradesh, Bihar, Delhi, Maharashtra, Madhya Pradesh, Tamil Nadu, Karnataka, Telangana, Uttarakhand, Jharkhand, Chhattisgarh and Kerala on the occasion of Prophet Mohammed’s birthday (Eid-e-Milad) and Thiruvonam, the main festival of Kerala.
-
28 August (Friday) – Rakshabandhan / Shri Narayana Guru Jayanti: On the occasion of Rakshabandhan, the holy festival of unbreakable love between brother and sister, there will be a complete holiday for banks in many states including Uttar Pradesh, Madhya Pradesh, Rajasthan, Uttarakhand, Gujarat, Haryana and Himachal Pradesh.
-
30 August (Sunday) – Weekly holiday: Due to the last Sunday of the month, banking services will remain closed at branch level across the country.
Regional mathematics of states: Holidays will be on different days from North India to South.
The impact of holidays will be visible differently in different states depending on the nature of the festivals:
-
Uttar Pradesh, Delhi, Bihar and Madhya Pradesh: In these states, banks will remain closed on August 22 (fourth Saturday), August 23 (Sunday), August 26 (Eid-e-Milad), August 28 (Rakshabandhan) and August 30 (Sunday).
-
Kerala and Southern States: Due to Onam festival in Kerala, banks will remain closed continuously on 25th and 26th August, due to which the residents there will have to plan their financial transactions in advance.
-
Gujarat and Western India: Banks will remain completely closed in Gujarat and Rajasthan on Rakshabandhan (28th August), resulting in a mixed week of 28th August (Friday), 29th August (Saturday – open) and 30th August (Sunday – closed).
Work will not stop even if branches are closed: Digital banking services will remain operational 24 hours
Even though the main gates of bank branches will remain closed, there is absolutely no need for common citizens and businessmen to panic. In the era of modern digital banking most of the essential financial services will operate uninterrupted round the clock:
-
ATMs and Cash Deposit Machines (CDM): ATMs and recycler machines to withdraw cash and deposit cash into accounts will continue to operate 24×7 as usual.
-
UPI and online transactions: Payment services like Google Pay, PhonePe, Paytm and Bhim UPI will remain completely smooth. You will be able to make merchant payments and fund transfers at any time.
-
Internet and Mobile Banking: Online money transfer facility through IMPS, NEFT and RTGS will continue 24 hours without any interruption.
-
Credit and Debit Card Swipe: Card transactions will continue as usual at POS machines and online e-commerce shopping.
Check clearance and government work will be affected: Keep these things in mind
Despite digital transfers continuing, there are some banking operations which are directly affected when branches remain closed. If you are going to make any big transaction, pay special attention to these points:
-
Delay in check clearance: If you deposit the check in the bank drop box on or just before a holiday, its clearance will be possible only on the next working day. National Automated Clearing House (NACH) and Check Truncation System (CTS) do not process during holidays, which may lead to the risk of EMI or mutual fund SIP bouncing. Maintain adequate balance in your account beforehand.
-
Loan Disbursal and Documentation: Work related to approval of new loan, property mortgage or locker access from the bank will be possible only on the opening day of the bank.
-
Demand Draft (DD) and Forex Services: The work of exchanging foreign currency or making DD for foreign travel will stop during the holidays.
Follow these 4 smart tips before going to the branch so that you do not face any problem.
Follow these practical tips to avoid any inconvenience this festive season in August:
-
Check Status on RBI and Bank App: Before visiting your bank branch, please check the list of holidays of your state by visiting the app of the concerned bank (like SBI YONO, HDFC MyCards, iMobile) or the official website of RBI.
-
Keep necessary cash in advance: There is a huge demand for cash in ATMs during festivals and due to long holidays, sometimes there may be a problem of running out of cash in the nearest ATM. Therefore, withdraw some cash in advance for important expenses.
-
Advance arrangement of important bills and EMIs: If the last date of your loan installment, credit card bill or insurance premium is between 22nd to 28th August, then complete the payment online 1-2 days before the holidays.
-
Use of Bank Mitra and CSP Centres: In rural and town areas, for small cash transactions and mini statements, help can be taken from Customer Service Centers (CSP/Banking Correspondents) who work at the local level.
This series of holidays in the last 15 days of August is going to increase the festive cheer, but with a little caution and proper use of digital tools, you can complete your financial tasks on time without any interruption.