The Reserve Bank of India (RBI) has released a fresh update regarding bank holidays, confirming that all public and private sector banks will remain closed on 27th and 28th August. This declaration is expected to impact millions of customers across the country as services like cheque clearance, passbook updates, and cash transactions at bank counters will not be available during this period.
Why Banks Are Closed for Two Days
According to RBI’s notification, the two-day closure falls under the Negotiable Instruments Act, which governs holidays for banks. These holidays are not nationwide in nature but are instead applicable depending on the state and festival being observed. Since these dates align with regional festivities and official holidays, banks in multiple states will remain shut.
Services That Will Remain Available
While physical branches will be closed, digital and online banking facilities will continue to function without interruption. Customers can use mobile banking, UPI, net banking, and ATMs for basic transactions. However, activities requiring in-person banking, such as loan processing, demand draft issuance, and cheque clearance, will resume once the banks reopen.
States Where Holidays Will Be Observed
The list of holidays differs from state to state. RBI has clarified that these closures are due to different regional observances. Customers are advised to check their state-specific holiday list before planning bank-related work.
Bank Holiday Schedule for 27th–28th August 2025
| Date | Day | Occasion / Festival | States Affected |
|---|---|---|---|
| 27th August | Wednesday | Regional Festivals & Observances | Several North-East & South Indian States |
| 28th August | Thursday | Local Festivals & Public Holiday | Select States in North & West India |
(Note: Holiday applicability may differ as per regional RBI holiday list.)
Impact on Businesses and Customers
The two-day shutdown may cause inconvenience to those who rely heavily on physical banking services. Businesses dealing with bulk cash transactions, cheque clearances, and account settlements may face delays. To avoid last-minute issues, customers are advised to complete important tasks before the holidays begin.
What Customers Should Do
Customers should ensure they withdraw sufficient cash, complete cheque deposits, and schedule their financial transactions in advance. Digital payment systems like UPI, IMPS, and net banking can help bridge the gap during the closure period.
RBI’s Clarification on Future Holidays
RBI has emphasized that such holidays are part of the annual holiday calendar, which is pre-notified every year. However, periodic reminders are issued to ensure customers remain aware of upcoming bank closures.