RBI Announces 20 Bank Holidays Across India in October 2025

When Reserve Bank of India released its October 2025 holiday matrix, the banking world took note: twenty days of physical closures will ripple across the nation, from the bustling streets of Delhi to the tea‑laden lanes of Bihar. The list, compiled from data shared by ClearTax, BankBazaar and HDFC Bank, pins down every Sunday, the second Saturday (Oct 11) and the fourth Saturday (Oct 25) as mandatory non‑working days for all banks—public, private, cooperative, rural or local. In addition, a cascade of festival observances—Mahatma Gandhi Jayanthi, Diwali, and regional celebrations like Chhath Puja—will keep teller windows shut while digital channels stay humming.

RBI Holiday Policy: Why the Calendar Matters

Here's the thing: under the Negotiable Instruments Act, the RBI is the only body that can dictate when banks must close. That authority dates back to 1881, but the modern rollout of a month‑long schedule is a relatively new practice, introduced in 2015 to sync banking holidays with the government’s gazette. The goal? Prevent a chaotic patchwork of regional closures that could stall cash flow during peak business periods.

According to an Indian Express interview, the central bank’s holiday matrix is designed to give customers a predictable framework while allowing banks to maintain essential services—like ATMs and internet banking—throughout the shutdowns.

State‑wise Observances in October 2025

Turns out the October calendar reads like a festival road‑map. Below is a quick snapshot of the most consequential dates, broken down by state:

• Oct 1 – Maha Navami/Durga Puja: Bihar, Karnataka, Kerala, Odisha, Tamil Nadu
• Oct 2 – Mahatma Gandhi Jayanthi/Dussehra: Nationwide (plus Durga Puja (Dashami) in Bihar)
• Oct 3 – Ghatasthapana in Rajasthan
• Oct 6 – Lakshmi Puja in Odisha, Punjab, Sikkim
• Oct 7 – Maharishi Valmiki Jayanti in Haryana, Himachal Pradesh, Karnataka, Kerala, Madhya Pradesh, Punjab
• Oct 11 – Second Saturday (mandatory closure for all banks)
• Oct 17 – Karwa Chauth in Rajasthan, Haryana, Punjab, Uttar Pradesh
• Oct 20 – Naraka Chaturdashi (Chhoti Diwali) – many states
• Oct 21 – Diwali Amavasya/Lakshmi Puja: Nationwide
• Oct 22 – Vikram Samvat New Year/Balipadyami in several northern states; Diwali observance continues in Bihar
• Oct 23 – Bhai Dooj in Gujarat, Sikkim, Uttarakhand, Uttar Pradesh
• Oct 24 – Ningol Chakkouba in Manipur
• Oct 27‑28 – Chhath Puja in Bihar and Jharkhand
• Oct 31 – Regional Diwali celebrations in Assam, Goa, Punjab, Uttarakhand, Uttar Pradesh, West Bengal, J&K, Delhi; Sardar Patel’s Birthday in Gujarat; Narak Chaturdasi in Odisha; Kali Puja in West Bengal
• Oct 25 – Fourth Saturday (mandatory closure for all banks)

Bank officials in Bihar told HDFC Bank that the two‑day Diwali window (Oct 20‑23) historically sees a 30‑40% surge in cash withdrawals, so they’ve pre‑positioned extra ATM cash in high‑traffic pockets.

How Banks Keep Services Running During Closures

But wait, a bank being “closed” doesn’t mean the whole financial system shuts down. The RBI mandates that all banks must keep digital platforms operational 24/7, regardless of physical branch status. In practice, this means:

1. ATMs remain stocked, though some may run low during festival spikes.
2. Internet and mobile banking stay fully functional; customers can transfer funds, pay bills, and even apply for loans online.
3. Customer care call centers operate on a reduced schedule but still handle high‑volume queries.

“Our priority is uninterrupted access to digital services,” said a spokesperson for Reserve Bank of India in a March briefing. “Physical closures are a compliance necessity, but technology bridges the gap.”

Impact on Customers and the Economy

Interestingly, the October block of holidays aligns with the end of the fiscal quarter for many corporations. That overlap can tighten cash flow for small businesses that rely on in‑person deposits. The Hindustan Times warned that ATMs may face crowding, especially during the Diwali rush, potentially leading to temporary cash shortages in tier‑2 cities.

Analysts at ClearTax estimate a short‑term dip of 0.2–0.4% in cash‑based transactions during the four‑day Diwali window, offset by a surge in digital payments that often tops 70% of total transaction volume during festivals.

From a macro perspective, the RBI’s coordinated approach helps avoid the panic‑withdrawal scenarios seen in 2016 when ad‑hoc state holidays left banks scrambling to meet cash demand.

Looking Ahead: Digital Banking Trends Post‑October

The twist is that each holiday cycle nudges banks further toward digitisation. After the October spree, major banks plan to roll out “holiday‑ready” mobile features—like scheduled fund transfers that execute automatically once branches re‑open.

Moreover, cooperative banks, which historically lag in tech adoption, are being nudged by RBI guidelines to upgrade their core banking systems by 2026. If they succeed, the need for physical cash during future holiday seasons could shrink dramatically.

In short, while the October calendar spells out twenty days of closed doors, it also lights up a path toward a more resilient, digital‑first banking ecosystem.

Key Facts

• Total bank holidays in October 2025: 20
• Mandatory nationwide closures: every Sunday, Oct 11 (2nd Saturday) and Oct 25 (4th Saturday)
• Major festival closures: Diwali (Oct 21 nationwide), Mahatma Gandhi Jayanthi (Oct 2 nationwide), Chhath Puja (Oct 27‑28 in Bihar & Jharkhand)
• Digital services remain active throughout all holidays
• Customers advised to plan cash withdrawals ahead of the Oct 20‑23 Diwali window