Central Government Holidays

Declared by the Central Government for its offices and public institutions. These typically include the three national holidays (Republic Day, Independence Day, Gandhi Jayanti) and may include additional days like Mahashivratri or Ambedkar Jayanti.

State Government Holidays

Declared by individual State Governments for their offices and public institutions. These often include regional festivals and local events. Banks in those states must observe these holidays as declared by the respective state governments.

Regional Festivals

Many state governments declare holidays for regional festivals that are significant to the local culture. For example:

• Tamil Nadu: Pongal (Jan 15), Thiruvalluvar Day (Jan 16)
• Maharashtra: Chatrapati Shivaji Maharaj Jayanti (Feb 19)
• Kerala: Onam (Date varies)
• West Bengal: Durga Puja (Date varies)

Impact on Banking

State Government holidays have a direct impact on banking operations within that state:

• Banks in the state must remain closed on declared holidays
• Local cheque clearing may be affected
• Customer service and branch operations are suspended
• ATM services usually remain operational

National Significance

Bank holidays in India are primarily governed by the Reserve Bank of India (RBI) and include mandatory closures on national holidays like Republic Day (January 26), Independence Day (August 15), and Gandhi Jayanti (October 2). These holidays are uniform across the country and affect all banking operations.

Religious Diversity

Reflecting India's cultural diversity, the bank holiday calendar includes major religious festivals such as Diwali (October 31), Eid al-Adha (June 17), Christmas (December 25), and Buddha Purnima (May 9). The observance of these holidays may vary by region based on local demographics.

Regional Celebrations

States have the authority to declare additional holidays for regional festivals. For instance, Tamil Nadu observes Pongal (January 15) as a state holiday, which is significant for banks operating in that region. These holidays are declared by State Governments and are binding for banks within their jurisdiction.

Weekly Structure

All Saturdays are weekly holidays for banks. The 2nd and 4th Saturdays of each month are designated as full holidays with complete closure, affecting services like NEFT and RTGS which operate only on working days as per the RBI's financial calendar.

Financial Impact

Bank holidays significantly impact financial transactions. Services like NEFT, RTGS, and cheque clearing are suspended on these days. Customers are advised to plan their transactions accordingly, utilizing online banking services where available or scheduling transactions for the next working day.