RBI Cancels September 5 Bank Holiday, Declares New Holiday on September 8

RBI Cancels September 5 Bank Holiday, Declares New Holiday on September 8: What’s Open and What’s Not

Mumbai, Sept 5, 2025 — In a surprise move, the Reserve Bank of India (RBI) has officially cancelled the previously declared bank holiday on September 5, 2025, and shifted the observance to Monday, September 8, 2025, under Section 25 of the Negotiable Instruments Act. The change comes amid overlapping festivities—Ganesh Chaturthi immersion and Id-e-Milad—prompting logistical concerns across financial and civic institutions.

What’s Changing?

• September 5 (Friday): Banks will remain open nationwide, reversing earlier closure plans.
• September 8 (Monday): Declared a public holiday in Maharashtra and other states for Id-e-Milad. No transactions or settlements will occur in:
  • Government securities (G-Sec)
  • Foreign exchange (Forex)
  • Money markets
  • Rupee interest rate derivatives

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Stock Market Status

• BSE and NSE: Will remain open on September 5.
• September 8: Trading will continue as usual, but settlement of certain government securities may be deferred to September 9.

Schools and Colleges

• September 5: Educational institutions in most states will operate normally.
• September 8: Schools in Maharashtra, Telangana, Karnataka, and parts of North India will observe a holiday for Id-e-Milad. Parents are advised to check local circulars.

Impact on Businesses and Services

• Retail banking: Cheque clearance, NEFT, RTGS, and UPI will function on September 5.
• Online services: Unaffected on both days.
• Courier and logistics: May experience delays on September 8 due to partial closures.

Why the Shift?

The RBI’s circular dated September 4 cited overlapping religious events and requests from state governments and market participants for flexibility. The move aims to ensure smoother financial operations and reduce disruptions during high-volume transaction periods.

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