RBI Cancels March 31 Bank Holiday - Here's Why

To ensure all financial transactions for the fiscal year 2024-25 are properly recorded, the Reserve Bank of India (RBI) has instructed all agency banks—those handling government transactions—to remain open on March 31, 2025 (Monday). This is despite it being a public holiday in many states.

Why Was March 31, 2025, Initially a Holiday?

Banks were originally supposed to be closed in most states on March 31, 2025, except in Himachal Pradesh and Mizoram, due to Ramzan-Id (Id-Ul-Fitr).

Why Has RBI Issued This Directive?

March 31 is the last day of the financial year. To prevent any delays in government transactions and financial reporting errors, RBI wants all government-related receipts and payments to be completed within this period. Keeping banks open ensures the smooth processing of these transactions.

What Transactions Need to Be Completed by March 31?

Since March 31 marks the end of the government’s financial year, all revenue collections, payments, and settlements need to be finalized before April 1. This includes:

• Government tax payments – Income Tax, GST, Customs, and Excise duties
• Pension payments and government subsidies
• Government salaries and allowances
• Public transactions related to government schemes and benefits

Will Banks Be Closed on April 1?

Yes, banks will be closed on April 1, 2025 (Tuesday) in most states and Union Territories for annual account closing as per RBI’s directive. However, banks in Meghalaya, Chhattisgarh, Mizoram, West Bengal, and Himachal Pradesh will remain open.

Will Online Banking Be Available?

Yes, digital banking services, including mobile banking and internet banking, are expected to work as usual. Customers can use these platforms for government-related transactions like tax payments and fund transfers. However, it’s advisable to check with individual banks for specific instructions.