The Reserve Bank of India (RBI) has announced that banks in several major cities, including Mumbai, Delhi, Chennai, Bengaluru, Kolkata, and Hyderabad, will remain closed on February 26, 2025, in observance of Mahashivratri. This closure is part of the RBI's official holiday schedule, which categorises holidays under the Negotiable Instruments Act, Real Time Gross Settlement (RTGS) Holiday, and Banks' Closing of Accounts. While physical banking operations will be halted, digital banking services, including the Unified Payments Interface (UPI), net banking, and ATMs, will continue to function across the country, ensuring that customers can still perform essential transactions.
The RBI's holiday list indicates that not all states observe the same holidays, reflecting regional diversity in public celebrations. In addition to Mahashivratri, banks in Gangtok will also close on February 28, 2025, for the Losar festival. Typically, banks also adhere to regular weekend closures, including Sundays and the second and fourth Saturdays of each month, which are part of standard banking operations. Furthermore, government offices, schools, and colleges will follow suit, remaining shut in states where Mahashivratri is a public holiday. Nonetheless, essential services like public transport and hospitals will continue to operate, ensuring that critical infrastructure remains functional.
In the financial sector, both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) will be closed on February 26, aligning with the bank holiday. The stock markets have been experiencing a subdued trading environment ahead of this mid-week holiday. The Nifty index has been struggling to surpass the 22,600 mark, following a significant sell-off earlier in the week, which saw it drop below a crucial support level of 22,800. This downturn was attributed to weak global market cues and a break in key technical supports, impacting broader market sentiment.
The holiday schedule underscores the need for businesses and individuals to plan their financial activities around these closures. Despite the physical bank closures, the continuity of digital banking services highlights the increasing reliance on technology to facilitate financial transactions, a trend that has been growing steadily in recent years. As digital platforms remain operational, they ensure that the economy continues to function smoothly, even when traditional banking services take a pause.
This planned closure is a reminder of the cultural significance of Mahashivratri across various Indian states, illustrating the blend of tradition and modernity within the country's financial and cultural calendars. The ability of digital banking to bridge the gap during such holidays marks a significant shift in how financial services are accessed and utilised, ensuring that customers remain connected to their financial institutions at all times. Businesses and investors must remain vigilant and adapt to these scheduled breaks to maintain seamless operations.