As 2025 winds down, many customers across India are seeking clarity on banking schedules for December 31, 2025, and January 1, 2026. While banks in certain states will remain closed on New Year’s Eve, others will operate normally, allowing customers to plan their financial activities accordingly. Understanding these holidays helps avoid last-minute delays and ensures smooth access to banking services.
On New Year’s Eve, banks in Mizoram and Arunachal Pradesh will remain closed. These closures coincide with celebrations of New Year’s Eve and the regional festival of Imoinu Iratpa. Customers in these states should plan essential branch visits in advance to avoid inconvenience.
Bank Closures On January 1, 2026
Several states will observe bank holidays on New Year’s Day. Banks will remain closed in Mizoram, Tamil Nadu, Sikkim, Manipur, Arunachal Pradesh, Nagaland, West Bengal, and Meghalaya. The holidays recognise New Year’s Day along with regional observances such as Gaan-Ngai.
Digital Banking Remains Accessible
However, bank closure does not mean that customers can not process their financial transactions during holidays, making it possible to continue using online banking, ATMs, mobile banking apps, and UPI for fund transfers, bill payments, and routine transactions. It is important to note, however, that in-person services such as large cash deposits, cheque clearances, and issuance of demand drafts will not be available on these days.
Account holders are encouraged to plan their banking needs ahead of the festive period and maximise the use of digital platforms to avoid any disruptions. Additionally, bank holidays can vary by state, and according to the RBI, banks are also closed on the second and fourth Saturdays of every month.
The RBI classifies bank holidays into three categories: National Holidays (such as Republic Day, Independence Day, and Gandhi Jayanti), State or Regional Holidays (local festivals like Holi, Diwali, and Eid), and Regular Closures (all Sundays and the second and fourth Saturdays of each month).
