Bank Holidays: Why are Banks Closed on 2nd and 4th Saturday? Explained

In India, banks follow a structured bank holiday schedule that includes the second and fourth Saturdays of each month, as well as Sundays and other designated holidays. The system was implemented on 1 September 2015 after an agreement was reached between the Banking Association of India (IBA), the Reserve Bank of India (RBI) and the Government of India. The main goal is to improve bank employees and simplify work-life balance in banking operations.

In this article, we will learn more about why banks are closed on Saturdays 2nd and 4th? Discover the history, legal framework and reasons behind this rule. Also, please check the list of bank holidays for March 2025.

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Will the bank open or close today on March 15, 2025?

Today, March 15, 2025 is the third Saturday of the month. Under the Standard Banking Program, the bank operates on the first and third Saturdays. However, banks in some states including Agartala (Tripura), Bhubaneswar (Odisha), Imphal (Manipur) and Patna (Bihar) have been closed due to regional observations of festivals such as the Winter Bureau and Yaoosang. In other states, including Uttar Pradesh, banks are open and operated according to regular working hours.

Second and 4th Saturday Bank Vacation Rules: History

The Reserve Bank of India (RBI) formally announced the change in a press release dated August 28, 2015, under the Trading Instruments Act of 1881. According to a press release from the Reserve Bank of India, all planned and unscheduled commercial banks in India must remain unchanged on the second and fourth Saturdays of each month, while saturating on the first and third days, third and fifth days.

Prior to the 2015 reform, the bank operated on all Saturdays on all Saturdays, with the second and fourth Saturdays being half-day. This often leads to confusion among clients between bank hours and increases the workload of employees.

The need for a better work-life balance for banking employees has been underway for years. As technological advances allow 24/7 online banking, increasing pressure reduces the number of jobs on Saturday without disrupting banking.

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Institutions involved

The transition to the current Saturday shutdown involves collaboration between key agencies:

Government of India: Official notices of the second and fourth Saturdays as public holidays under the Transferable Instruments Act.

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Reserve Bank of India (RBI): As the Central Bank Authority, the Reserve Bank of India provides banks with guidelines for adjusting their operations based on the new holiday schedule.

Indian Banking Association (IBA): On behalf of various banking institutions, the IBA plays a key role in negotiating and facilitating the implementation of the revised holiday structure.

RBI Holiday Classification

The Reserve Bank of India (RBI) is responsible for planning, regulating and arranging bank holidays nationwide. It divides holidays into three main types: The Reserve Bank of India divides bank holidays into three main categories:

Under the Negotiable Instruments Act of 1881, Holidays: These are public holidays announced by the government, during which banks remain closed in general bank transactions, including check clearing and financial settlements. Examples include national holidays such as Republic Day (January 26), Independence Day (August 15), and Gandhi Jayanti (October 2), as well as major religious festivals.

Real-time Total Summarization (RTGS) Holidays: RTGS used for high-value fund transfers follow a specific holiday schedule. During RTGS holidays, usually national holidays and non-working days designated by RBI, RTGS transactions are not available. However, other digital payment systems such as NEFT (national electronic funds transfer) and UPI (unified payment interface) are still in operation.

Bank Account Closed Year: On April 1 each year, the bank completed public transactions to reconcile financial records for the new fiscal year. Internal management continues when branches are closed with customers.

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Banking services available during the holidays

Despite closing physical branches on designated holidays, several banking services are available:

Online Banking: Customers can perform various transactions through the Internet banking platform, such as fund transfers, bill payments and account management.

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Mobile Banking: The banking app allows customers to access services using their smartphones, check balances and conduct transactions.

ATM: ATM is operated 24/7 and can realize cash withdrawal, deposit and balance inquiries.

Digital payment systems: Services such as UPI, IMPS (Instant Payment Service) and NEFT help with real-time transactions even during holidays.

Bank Holidays in March 2025: Check the full list

In addition to the second and fourth Saturday holidays, Bank of India remained closed in certain regional and national holidays announced by the Reserve Bank of India (RBI) and the state government. These holidays vary in states according to local festivals and commemorations.

Here is the list of bank holidays for March 2025:

date	sky	obey	Bank closes
March 2, 2025	Sunday	Weekly holidays	All states
March 7, 2025	Friday	Chapchar Kut	Mizoram
March 8, 2025	Saturday	The second Saturday	All states
March 9, 2025	Sunday	Weekly holidays	All states
March 13, 2025	Thursday	Holika Dahan, Attukal Pongala	Uttar Pradesh, Uttarakhand, Jharakhand, Kerala, Draden, Kanpur, Lucknow, Ranchi, thiruvananthapuram
March 14, 2025	Friday	Holi (Dhuleti/Dhulandi/Dol Jatra)	Most states except Tripura, Karnataka, Odisha, Tamil Nadu, Manipur, Kerala and Nagaland; including Ahmedabad, Aisal, Berlapur, Bhopal, Chandigarh, Dradu, Gangtok, Gangtok, Guwahati, Hyderabad, Hyderabad, Itanagal, Japur, Chamu, Kanpur, Kolkata, Lucknow, Lucknow, Mohammedansrinagar
March 15, 2025	Saturday	Holi Festival/Yaosang Day 2	Agartala, Bhubaneswar, Imphal, Patna
March 16, 2025	Sunday	Weekly holidays	All states
March 22, 2025	Saturday	Bihar, fourth Saturday	Bihar and (the fourth Saturday in the country)
March 23, 2025	Sunday	Weekly holidays	All states
March 27, 2025	Thursday	shab-i-qadr	Jamum, Srinagar
March 28, 2025	Friday	jumat-ul-vida	Jamur, Kashmir
March 30, 2025	Sunday	Weekly holidays	All states
March 31, 2025	on Monday	Ramzan-ID (ID-UL-FITR)	Most states except Mizoram and Himaal Pradesh

Source: Reserve Bank of India (RBI)

in conclusion

The second and fourth Saturday bank holidays were introduced to enhance employee well-being while ensuring a smooth banking business. This decision was supported by the Transferable Instruments Act of 1881 and was the result of discussions between the IBA, the Reserve Bank of India and the Government of India.

With digital banking solutions available 24/7, customers can seamlessly manage their financial situation even on days when they are not working. However, those who need physical banking services should plan access accordingly to avoid inconvenience to you.

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