Bank customers across 15 Indian states are set to experience a three-day disruption in services, as financial institutions will observe a holiday on June 26 for Muharram. This gazetted holiday, combined with the fourth Saturday and a Sunday, means many bank branches will remain closed from Friday through Sunday, June 28.
Why the Closures?
The extended bank holiday primarily stems from the observance of Muharram, a significant date in the Islamic calendar, coinciding with a standard banking weekend.
Muharram Observance
June 26 marks Ashura, the 10th day of Muharram, which is the first month of the Hijri calendar. While the Islamic New Year began on June 17 in India, the specific date for Ashura varies by region based on moon sightings. In India, the Muslim community will observe Ashura on June 26, prompting a gazetted holiday that will also close central government offices.
Impacted States
The Reserve Bank of India (RBI) guidelines confirm bank closures in numerous states. These include Andhra Pradesh, Bihar, Chhattisgarh, Delhi, Jammu and Kashmir, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Mizoram, Tamil Nadu, Telangana, Tripura, Uttar Pradesh, and West Bengal. This encompasses major commercial hubs such as Mumbai, Delhi, Bengaluru, Chennai, and Kolkata. However, some regions might not have listed it as an official bank holiday, so customers are advised to verify locally.
Beyond banks, stock markets like the BSE and NSE will also be fully closed on June 26, giving traders a three-day break.
Digital Banking Remains Open
For those needing to conduct urgent financial transactions, digital services will continue to operate normally. Unified Payments Interface (UPI), mobile banking applications, and Automated Teller Machines (ATMs) will be fully functional throughout the holiday period.
Extended Weekend Effect
The impact of the Muharram holiday is amplified by its timing. Since June 26 falls on a Friday, it directly precedes the fourth Saturday of the month (June 27), which is a mandatory bank holiday, followed by the regular Sunday closure (June 28). This confluence results in a three-day banking shutdown across a significant portion of the country, advising customers to plan their branch visits and transactions accordingly.