RBI Cancels March 31 Bank Holiday: Here's why!

The Reserve Bank of India (RBI) has directed all agency banks to conduct government business on March 31, 2025, even though the day is declared a holiday across most states. This has been done so that financial records are reported with precision and any financial gaps do not occur.

Why the Sudden Change?

March 31 is the end of the government's financial year, which extends from April 1 to March 31 annually. For an orderly transition, the RBI has asked banks to remain open for normal services on March 31. This will allow the authorities to settle all transactions about revenue of the government, payments, and settlements before the opening of the new fiscal year.

Available Banking Services

On March 31, 2025, the following banking facilities will be provided:

• Government Tax Payments: Income Tax, GST, Customs, Excise duties
• Pension Payments and Government Subsidies
• Disbursement of Government Salaries and Allowances
• Public Transactions: Related to government schemes and subsidies

Digital Banking Services

Government-related online and mobile banking facilities for making tax payments and transferring funds are likely to function on March 31 and April 1, 2025. However specific instructions should be checked with individual banks.

By remaining open on March 31, the RBI wants to ensure that all reports for fiscal 2024-25 (FY25) are captured within the same timeframe. This action will assist in keeping the integrity of financial reporting intact and allow for a smooth transition into the new fiscal year.

Also read: Shab-e-Barat holiday for Telangana Schools on February 14