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Will Banks Be Closed For First 5 Days In Sept? Here’s What You Should Know!

There is a misleading message doing the rounds on WhatsApp, and confusion regarding bank holidays has set in, based on the RBI strike.

While WhatsApp officials are trying to crack down on the spread of fake news, it ultimately comes down to the people, and what they choose to believe.

The news that banks in India will be closed for 5 days has been doing the rounds. Messages claim that banks will be shut from September 3 to September 5 and on September 8 and 9. It also claims that on September 4 and 5, bank strikes for pension will affect day-to-day working.

Well, that news is wrong. Partly, at least. While it is true that banks might be closed for some of those days, there are specific reasons why.

Will banks be closed due to the RBI strike? Well, here's what you should know. Image Credit; My Goa
Will banks be closed due to the RBI strike? Well, here’s what you should know. Image Credit; My Goa

1) September 3 is Janmashtami. Shedding light on this, an HDFC bank official, quoted by The Statesman, said that “Monday, September 3, is not a pan-India holiday for banks. Banks in some states will remain closed as per the Negotiable Instruments Act. This, however, will not impact the online banking transactions nor it will affect the operation of ATMs.”

According to the RBI website, 16 of its 31 regional and sub-offices will remain closed on the occasion of Janmashtami.

You can see the list of banks that will be shut on Janmashtami, here.

2) On September 4 and 5, the employees of the Reserve Bank of India will go on strike. The protest has been called by the United Front of Reserve Bank Officers and Employees against the Centre’s refusal to accept its demand for pension updates. This strike will not affect consumer banks, both national and private.

3) September 6 and 7 are are normal working days, being a Thursday and a Friday.

4) Government banks are closed on the second Saturday of the month, and September 8 happens to be one.

As reported in the Economic Times, Ashwani Rana, the Vice President of the National Organisation of Bank Workers, said that “The message going around in the social media that banks will be closed for six days in the first week of September due to holidays and bank strike is not correct. It’s only the RBI employees who are going on mass casual leave on September 4-5 for demands related to Provident Fund and pension. This will not have much impact on the day-to-day operations of the other public and private sector banks.”

While the RBI strike will not hamper day-to-day banking operations in local branches, it will have some indirect effect on daily banking, according to IndiaTV News.

Here’s are the services that will be affected:

· Cheque Clearances.
· Payments and settlements.
· Forex transactions.
· Real-time gross settlement (RTGS).
· National Electronic Funds Transfer (NEFT).

That is because these operations require real-time communication between the RBI system and banks.


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The solution?

Use IMPS methods for smaller day-to-day transactions, as the RBI effect may only fall on certain online transactions, including large sum transactions at branches.

(Edited by Gayatri Mishra)

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