The Reserve Bank of India (RBI) has announced the cancellation of the Eid-ul-Fitr holiday previously scheduled for 31 March 2025. In a directive issued to all banks, the RBI has mandated that banking operations must continue on this day. The decision stems from the fact that 31 March marks the conclusion of the financial year 2024-25, making it a crucial date for completing government transactions.
Banks to Operate for Smooth Government Transactions
The RBI clarified that all banks involved in handling government transactions will remain operational on 31 March 2025. This measure is intended to facilitate the smooth completion of all government-related receipts, payments, and other transactions within the financial year 2024-25.
Previously Declared Holiday Revoked
Initially, banks across most states were scheduled to remain closed on 31 March due to the Eid-ul-Fitr celebration. The holiday had been declared in nearly all states, except for Himachal Pradesh and Mizoram. However, under the latest guidelines from both the government and the RBI, all banks are now required to remain open on this date.
Importance of 31 March in the Financial Calendar
As the final day of the government’s financial year, 31 March holds significant importance. It is the deadline for the completion of various government financial activities, including revenue collection, payments, and other monetary transactions. This prompted the authorities to ensure that banks remain operational to avoid any disruption.
Transactions to Be Processed on 31 March
On this crucial day, individuals and businesses can complete their income tax, GST, customs duties, and excise payments. Additionally, essential government functions such as pension disbursements, subsidy transfers, and the processing of salaries and allowances will proceed without interruption.
Introduction of New Rs 50 Banknotes
In a related update, the Reserve Bank of India will soon introduce Rs 50 banknotes featuring the signature of the newly appointed Governor, Sanjay Malhotra. Malhotra succeeded Shaktikanta Das in December 2024. According to an official statement released on Wednesday, the new Rs 50 notes will retain the design of the existing Mahatma Gandhi (New) series banknotes.
