September 5, 2025 (Friday) was initially designated by the Reserve Bank of India (RBI) as a bank holiday in observance of Eid-e-Milad (Milad-un-Nabi) and the festival of Onam. These important religious and cultural occasions commonly lead to closures of banking institutions in various parts of India, impacting public-sector banks, private banks, and regional branches alike.
However, following feedback and requests from several state governments and industry participants, the RBI has revised this schedule to better accommodate continuity in banking operations nationwide. As such, the earlier directive for a bank holiday on September 5 has been officially cancelled, and banks across the country will remain operational on this day.
To maintain the sanctity of Eid-e-Milad and Onam celebrations while minimizing disruption to banking services, the RBI has rescheduled the official bank holiday to Monday, September 8, 2025. On this rescheduled day, certain banking operations such as settlements and transactions in government securities, foreign exchange markets, money markets, and rupee interest rate derivatives will be paused, reflecting the holiday’s observance in financial markets.
Despite this national-level decision, some states had already issued notifications declaring September 5 as a holiday on account of Eid-e-Milad or Onam. States including Gujarat, Karnataka, Tamil Nadu, Uttar Pradesh, Telangana, Kerala, Jammu & Kashmir, and Delhi may observe localized bank branch closures on September 5 itself. This means that in these regions, bank customers should verify the status of their specific bank branches to plan their banking affairs accordingly.
The decision by the RBI to cancel the nationwide holiday on September 5 and shift it to September 8 aims to reduce inconvenience caused by bank closures, particularly in the context of payment cycles, cheque clearances, and retail banking needs. Many routine banking services, essential for customers’ day-to-day financial management, benefit from this continuity.
Significance of Eid-e-Milad and Onam:
Eid-e-Milad, also known as Milad-un-Nabi, commemorates the birth of Prophet Muhammad and is widely observed across India by the Muslim community with religious prayers, processions, and community gatherings. Traditionally, this occasion is marked by public holidays in several states, leading banks and other establishments to close as part of the observance.
Onam, a major harvest festival celebrated predominantly in Kerala, honors the legendary King Mahabali and features vibrant cultural events like boat races, folk dances, and a grand feast known as Onasadya. Bank holidays on Onam ensure that communities and families can fully partake in festivities without workday interruptions.
Bank Holidays in September 2025:
The month of September generally includes a considerable number of bank holidays across India, reflecting diverse regional festivals and national observances. In 2025, September accounts for approximately 15 bank holidays as per the RBI’s official calendar, catering to the country’s multicultural fabric.
Given their variable nature, these holidays depend heavily on regional traditions and government notifications. While some holidays like the second and fourth Saturdays and Sundays are uniform nationwide, festivals such as Eid-e-Milad and Onam bring an important regional dimension to banking schedules.
Advisory for Bank Customers:
Customers planning to visit bank branches on September 5, 2025, are advised to check the holiday status specific to their city or state. While most banks will remain open in observance of the revised RBI directive, localized closures may occur in some states observing Eid-e-Milad or Onam on the original holiday date.
It is also important to note that while digital banking services remain accessible at all times, certain banking transactions requiring physical presence—such as large cash deposits or withdrawals, locker access, issuing demand drafts, or updating KYC documents—may be affected during state-specific branch closures.
Conclusion:
The RBI’s proactive decision to shift the bank holiday linked to Eid-e-Milad and Onam from September 5 to September 8, 2025, balances the need for observing important cultural and religious festivals with the imperative of uninterrupted banking services. Bank customers and businesses alike can plan their financial activities with the assurance that banking functions will be largely uninterrupted on September 5, with localized exceptions.
For the latest updates on bank holidays and banking schedules, customers should regularly consult their bank’s official communications, the RBI’s announcements, and local government notifications.
