Eid 2025 Bank Holiday: Will banks remain open or closed on March 31?

On March 31, 2025, designated as a public holiday in India due to Eid-Ul-Fitr, banks across the country will remain open for essential transactions. The Reserve Bank of India (RBI) has mandated that agency banks handling government business must operate on this day. This decision aims to facilitate taxpayers and ensure smooth financial operations at the fiscal year-end. In particular, branches dealing with government receipts and payments will stay open until their regular closing hours, with special clearing operations for government cheque collections. These measures are coordinated by the Department of Payment and Settlement Systems of the RBI.

Initially, banks were expected to remain closed in most Indian states, excluding Himachal Pradesh and Mizoram, for the Eid-Ul-Fitr holiday. However, recognising the importance of uninterrupted service at the end of the financial year, the RBI introduced special provisions to keep certain branches open for critical transactions. This decision reflects the central bank's commitment to ensuring fluid financial operations, particularly in regions where government business is critical. 

Tax department

The Income Tax Department has also taken proactive steps to ensure tax-related activities continue without disruption. A press release dated March 26, 2025, confirmed that all Income Tax Offices across India would be operational on March 29, 30, and 31.

"The Financial Year 2024-25 closes on 31st March, 2025 (Monday), which is a Closed Holiday. Further, 29th March, 2025 is a Saturday and 30th March, 2025 is a Sunday. Therefore, to facilitate completion of pending departmental work, all the Income Tax Offices throughout India shall remain open on 29th, 30th and 31st March, 2025. This direction is issued for administrative convenience by the Central Board of Direct Taxes in exercise of powers conferred under section 119 of the Income-tax Act,1961," the Income Tax department said.

This would ensure that taxpayers can complete their year-end filings without hindrance. Taxpayers are encouraged to complete their transactions early to avoid any last-minute complications.

Despite these accommodations, it is advisable for taxpayers and other stakeholders to plan in advance. The extended banking hours and special clearing services are designed to ease the pressure of last-minute filings, but proactive measures by individuals and businesses will further enhance the effectiveness of these provisions. The coordinated efforts by the RBI, Income Tax Department, and IRDAI highlight a unified approach to managing financial operations during a significant public holiday, ensuring that essential services remain available to the public. 

IRDAI

The Insurance Regulatory and Development Authority of India (IRDAI) has instructed insurance companies to keep their offices open on March 29, 30, and 31. This directive aims to prevent any inconvenience to policyholders and ensure that insurance services remain uninterrupted during the financial year-end. By keeping offices open, the IRDAI intends to support the timely processing of policies and claims, reflecting a coordinated effort across financial sectors to maintain service levels despite the public holiday.