On Monday, March 31, 2025, Indian scheduled banks will observe a holiday in celebration of Eid Ul Fitr, marking the end of Ramadan, a month of fasting for Muslims worldwide. This year, the crescent moon was sighted on Sunday, March 30, confirming the festival's date in India, following earlier celebrations in major Middle Eastern and Western countries such as Saudi Arabia, the UAE, the USA, and Canada, which celebrated Eid on March 30.
Eid Ul Fitr, which falls on the first day of Shawwal, is a significant occasion for Muslims, symbolizing both the conclusion of Ramadan and the beginning of a new month in the Islamic calendar. The holiday is characterized by communal prayers, festive meals, and acts of charity, known as Zakat al-Fitr, which is meant to purify those who fast from any indecent act or speech.
Interestingly, despite March 31 being the last day of the financial year for 2024-25, the Reserve Bank of India (RBI) has declared a bank holiday across most states due to the Eid celebration. However, banks will remain operational in certain cities, including Agartala, Ahmedabad, Belapur, Bengaluru, Bhopal, Bhubaneswar, Chandigarh, Chennai, Dehradun, Gangtok, Guwahati, and others. Notably, banks in Shimla and Aizawl will also be open.
Banking services will not be available in cities where banks are closed, impacting customers' ability to carry out financial transactions. Payment systems like Real Time Gross Settlement (RTGS), National Electronic Fund Transfer (NEFT), and cheque clearing will also be unavailable. The RBI determines the bank holidays in India, which vary under the Negotiable Instruments Act and the Banks' Closing of Accounts category. This March, banks had a total of eight special holidays, excluding the second and fourth Saturdays and all Sundays.
As the holiday approaches, customers are advised to plan their transactions accordingly. While physical bank branches will be closed, online banking services and ATMs will remain operational, allowing customers to access their funds and make transactions without interruption.
According to the RBI, the decision to declare a holiday on March 31 was made to allow Muslims to celebrate Eid Ul Fitr, which is often marked by large gatherings and communal prayers. The festival is a time of joy, gratitude, and reflection for the Muslim community, emphasizing the importance of family and community ties.
In the context of financial transactions, the RBI's earlier announcement of a holiday on March 31 was later revised to ensure that government-related financial transactions could continue without disruption. This decision was made to accommodate the end of the financial year, ensuring that all accounting is completed before the new fiscal year begins on April 1, 2025.
While March 31 will see many banks closed, April 1 will also be a significant day as banks will be closed across all states for annual account finalization. This closure is standard practice, allowing banks to prepare their financial statements and reports for the fiscal year.
As we look ahead, the month of April will feature several holidays, including significant observances such as Babu Jagjivan Ram's Birthday on April 5, Mahavir Jayanti on April 10, and Dr. Babasaheb Ambedkar Jayanti on April 14. These holidays reflect the diverse cultural and religious fabric of India, with various festivals being celebrated across different states.
In summary, March 31, 2025, will be a public holiday for banks in celebration of Eid Ul Fitr, with specific exceptions in certain cities. While physical branches will be closed, customers can still access their funds online. As the nation prepares for this festive occasion, the importance of community and shared values is highlighted, reminding everyone of the significance of Eid in fostering unity and goodwill.
