Banking services across the nation have come to a halt today, Saturday, 27 December 2025, as financial institutions observe a scheduled closure. This shutdown affects all major public and private sector banks, including the State Bank of India (SBI), Punjab National Bank (PNB), HDFC Bank, Axis Bank, ICICI Bank, and Yes Bank.
Understanding the RBI's Saturday Holiday Rule
The closure is not an ad-hoc decision but follows the official holiday calendar mandated by the Reserve Bank of India (RBI). According to the central bank's guidelines, banks across India remain closed on the second and fourth Saturdays of every month. Additionally, all branches are shut on every Sunday as part of the weekly off.
It is crucial for customers to note that this rule has specific exceptions. Banks typically remain open and offer full services on the first, third, and fifth Saturdays of a month, provided those Saturdays exist in the calendar. Today's closure on 27 December falls squarely under the "fourth Saturday" rule, leading to the nationwide banking halt.
Legal Basis and Impact on Banking Instruments
This specific type of bank holiday on Saturday is designated under the Negotiable Instruments Act by the RBI. This classification is significant as it regulates critical financial operations, particularly the processing, clearing, and issuance of cheques and promissory notes. Transactions dependent on these instruments will not be processed until the next working day.
The RBI systematically categorises all bank holidays into three distinct segments to streamline operations. These categories are holidays under the Negotiable Instruments Act, closures for Real-Time Gross Settlement (RTGS) system maintenance, and the annual banks' closing of accounts.
Planning Your Financial Transactions
For customers, this scheduled closure means that all physical bank branches are inaccessible for services like cash deposits, withdrawals, passbook updates, or document submissions. However, digital banking channels—such as mobile banking apps, internet banking portals, and ATMs—are expected to remain operational for most cashless transactions, balance checks, and fund transfers via NEFT or IMPS, which may function depending on the specific bank's digital infrastructure.
It is always advisable to plan significant financial activities, especially those involving cheques or demand drafts, around the published RBI holiday list. The next working day for the banking sector will be Monday, 29 December 2025, when regular operations resume.
