Planning Ahead? Banks Shut for 15 Days in August

As the month of August approaches, it’s time to mark your calendars—banks across India will be closed for as many as 15 days during the month. This includes weekends, national holidays, and regional festivities. While these holidays are scattered throughout the month and vary from state to state, they can significantly impact banking operations, especially for those who rely on in-person services.

In an era where digital banking has become increasingly common, it’s easy to forget that some essential transactions—such as cheque clearance, demand drafts, or loan-related paperwork—still require visiting the branch. This article serves as your comprehensive guide to bank holidays in August 2025, and how to plan your finances accordingly.

Why Are Banks Closed for 15 Days in August 2025?

The 15-day closure is not a continuous stretch but a combination of: (https://rbi.org.in/Scripts/HolidayMatrixDisplay.aspx)

• National holidays
• State-specific festivals and observances
• Scheduled weekends (Saturdays and Sundays)

The Reserve Bank of India (RBI) issues a list of official holidays for banks each year under three categories:

1. Holiday under Negotiable Instruments Act
2. Holiday under Negotiable Instruments Act and Real-Time Gross Settlement (RTGS) Holidays
3. Banks’ Closing of Accounts

The holidays vary by state depending on local customs and celebrations.

List of Bank Holidays in August 2025

Here is a tentative list of the holidays observed by banks in different parts of India in August 2025:

Note: These holidays may vary slightly depending on the official calendar issued by the Reserve Bank of India and state governments. Always confirm with your local bank branch.

Impact of 15-Day Bank Closures

1. Disruption in Offline Services

If you depend on visiting your bank for cash withdrawals, cheque deposits, or other services, these closures can be inconvenient. Make sure to complete your major banking transactions ahead of these dates.

2. Delays in Cheque Clearance

Cheque clearances and document submissions usually don’t process during holidays. If you have any cheque payments scheduled, deposit them in advance to avoid bounce charges or penalties.

3. Loan EMI and Auto Debit Services

Most EMIs are auto-debited through the ECS system which works on banking days. Ensure your account has sufficient funds to avoid missed payments or penalty fees during extended closures.

4. Customer Support Unavailable

In-branch support and call center responses may experience delays. Although net banking and mobile banking services operate 24/7, certain issues might still need manual intervention.

Digital Banking to the Rescue

The good news is that online banking services remain unaffected by these holidays. You can still:

• Transfer money using NEFT, RTGS, IMPS, and UPI
• Pay bills and taxes online
• Access mini-statements and transaction history
• Manage investments and fixed deposits digitally

However, note that NEFT and RTGS transactions may not process during national holidays and weekends, depending on the bank’s internal schedule.

Plan Your Financial Activities Smartly

Here are a few tips to help you stay ahead:

Schedule Payments Early

If you have rent, utility bills, EMIs, or credit card dues coming up around the holidays, schedule them a few days in advance.

Keep Cash Handy

ATMs are usually refilled during working days. In holiday-heavy months like August, there’s always a risk of ATMs running out of cash, especially in remote areas or during festivals.

Avoid Branch-Dependent Work

Try not to schedule any branch visits during or right before extended weekends. Staff may be overburdened due to backlogs, leading to slower service.

Use UPI and Wallets

Unified Payments Interface (UPI) and digital wallets (like Paytm, Google Pay, PhonePe) are functional 24×7 and offer a seamless alternative to cash or card payments.

Track Holidays Using Mobile Apps

Most banking apps show upcoming holidays. Use them to get real-time alerts and schedule your banking accordingly.

Industries and Sectors Most Affected

SMEs and Retail Businesses

Small and medium enterprises that rely on cash flow and cheque transactions may face the brunt of holiday delays, especially in supply chain and inventory payments.

Real Estate Sector

This is a documentation-heavy sector with a strong dependency on demand drafts, property registration payments, and home loan processing—all of which are affected by bank closures.

Educational Institutions

August is the admission season in many schools and colleges. Parents should plan fee payments early to avoid late penalties.

Myths About Bank Holidays

“Banks Are Shut Everywhere on Holidays”

Not all holidays are pan-India. For example, Onam is only observed in Kerala. So, while banks in Kochi may be closed, branches in Delhi or Chennai may remain open.

“Digital Transactions Won’t Work”

Online services including UPI, mobile banking, and ATM withdrawals work uninterrupted even on holidays (unless affected by server maintenance or technical glitches).

“You Can’t Deposit Money at All”

Cash deposit machines and ATMs with deposit options still function. However, account crediting may be delayed if the backend is closed.

Government Initiatives to Mitigate Holiday Disruptions

To minimize the impact of banking holidays, the Reserve Bank of India and financial institutions are encouraging:

• Expansion of digital banking infrastructure
• Wider use of Business Correspondents (BCs) in rural areas
• Enhanced customer awareness campaigns on mobile and net banking
• Launch of digital banking units (DBUs) in remote districts
• Strengthening ATM networks and maintenance cycles

How Different Cities May Experience the Impact

Delhi & NCR

With Janmashtami and Raksha Bandhan widely celebrated, expect at least 3–4 days of bank closures. Plus, Independence Day brings security measures that may limit physical access.

Mumbai

Banking could be impacted during Ganesh Chaturthi and Parsi New Year. High ATM usage and traffic can also lead to machine downtimes.

Kolkata

West Bengal observes additional holidays like Jhulan Purnima, so users should expect a longer list of closures.

Chennai & Bengaluru

Generally see less disruption outside of national holidays, though local festivals may affect hours in specific branches.