Truth About Dussehra, Diwali Bank Holidays 

Truth About Dussehra, Diwali Bank Holidays  - Sakshi Post


With several posts and articles being circulated on social media about Banks remaining shut for three consecutive days in lieu of Dussehra and Diwali holidays, customers are in a state of panic when they come across headlines like Banks to remain shut this festive season, ATMS may run out of cash and Shortage of cash at bank ATMs due to holidays. These articles have pressed the panic button.

This kind of news creates a kind of fear psychosis among people and send them rushing to the nearest ATMs to hoard cash. This leads to a huge rush at the banks and ATMs, especially during the festive season and eventually the ATMs also run dry which confirms the worst fears triggered by such news items.

Two continuous bank holidays would make financial transactions a challenge. But if you are well planned and keep the list of the your Bank holidays (which are marked on the calendars distributed free of cost to customers by every bank at the beginning of the year) at your finger tips, then you are sorted.

Dasara, Diwali Bank Holidays: What You need to Know

Holidays are declared via notification by the government in the official gazette under the provisions of the Negotiable Instruments Act, 1881 and the business day of banks has legal sanctity which cannot be compromised.

Usually, Banks do not shut down continuously for three consecutive days unless there is a holiday on a Friday, followed by a 2nd or 4th Saturday and a Sunday at one go.

If a bank functions on a holiday (as declared by the official gazette of the government), there cannot be any business hours on that day and there will be no financial transactions made during that day even though the Bank remains open.

Every 2nd and 4th Saturday is a holiday for all the banks as per the RBI Gazette notification made in the year 2015.

Government of India, Ministry of Finance (Department of Financial Services) vide its Gazette notification F.No.4/1/7/2015-IR, dated 20th August 2015, has declared the second and fourth Saturday of every month as Public Holiday for Banks in India, whether or not such banks are included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), with effect from 1st September 2015, in exercise of the powers conferred by section 25 of the Negotiable Instruments Act 1881 (26 of 1881). Further, it is also informed by IBA that while every second and fourth Saturday of every month will be public holiday for banks, the other Saturdays of every month will be Full working days for banks.

Reserve Bank of India (RBI) clarifies the position on the functioning of banks on a holiday declared under the Negotiable Instruments Act in the interest of public. That happens rarely and if it does, the RBI sends a circular well in advance if the Banks are to function on a holiday

How to authenticate bank holiday rumours

First check with your bankers about the list of holidays declared for the financial year.

2nd and 4th Saturday of every month will be a public holiday for banks and 1st and 3rd Saturdays will be working days for banks.

Banks across India close on April 1st of every year for annual closing of accounts.

Check with the List of Public holidays as prescribed by your State of residence.

If there are two consecutive Public holidays i.e., on Thursday and Friday and the following Saturday happens to be a 2nd or 4th Saturday, followed by Sunday ,then it would be mean four consecutive holidays for the Bank.

But even on those days, ATMs in all the regions will be fully functional and there will be no impact on online banking transactions. Banks are instructed by the RBI to ensure that sufficient cash is available for dispensation from ATMs .

Bank Holidays in October 2018

In October, banks are likely to remain closed for four days in a row starting from Thursday, i.e October 18 on the occasion of Navami and October 19 on account of Dashmi. On both these days, there will be a complete shutdown of banking services. It will be then followed by October 20, which is a Saturday and October 21, a Sunday.)

This piece of Information posted on a website is incorrect as October 20th is a 3rd Saturday and is a working day for the bank.

(Bank Holidays in November 2018:

In November, the first week will have bank holidays due to Diwali and banks will not function from November 7 to November 9. Banks are likely to remain closed on the occasion of Diwali followed by Govardhan puja and Bhaidooj. After this, November 10 is the second Saturday and November 11 is a Sunday so no banking transactions would be possible.)

This could be true for some states in Northern Part of India as Govardhan puja and Bhaidooj are holidays there. But with bank holidays varying from state to state, people need to check with their bankers if they are open on these days.

And the sensible thing would be to have enough cash for day-to-day transactions during the festivals and for everything else, there is always an option of a cash-free shopping with a plastic card given by the bank!

Also Read:RBI Firm On Oct 31 As Data Localisation Deadline

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