Banks will remain closed in several parts of India on Wednesday on account of Id-e-Milad/Barawafat/Milad-un-Nabi and Thiruvonam which is a festival in Kerala.

Bank branches will be shut in cities including Belapur, Bengaluru, Bhopal, Chennai, Dehradun, Hyderabad, Imphal, Jammu, Kanpur, Kochi, Lucknow, Mumbai, Nagpur, New Delhi, Patna, Raipur, Ranchi, Srinagar, Thiruvananthapuram and Vijayawada.

Banks will also be closed for Raksha Bandhan on August 28. As with other festival holidays, the closure will depend on the location and the Reserve Bank of India’s holiday calendar.

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What is a bank holiday?

A bank holiday is a day when banks remain closed to customers for regular branch operations. Unlike some national holidays, bank holidays in India can vary from one state or city to another, depending on local festivals, cultural events and government notifications.

The Reserve Bank of India (RBI) publishes a holiday calendar that lists holidays applicable to different regions. This means a bank may remain open in one state while branches of the same bank are closed in another.

Why are banks closed on holidays?

Banks observe holidays to allow employees and customers to celebrate religious, cultural and national occasions. The closures also follow the holiday schedules notified by the RBI and state authorities.

However, a bank holiday does not mean that all banking services stop. Customers can use ATMs, internet banking, mobile banking and other digital payment services, although the availability of certain services may vary.

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Are Saturdays bank holidays?

Banks are also closed on the second and fourth Saturdays of every month. Branches generally remain open on the first, third and, where applicable, fifth Saturdays.

Most routine digital banking services can continue to be accessed online.