Banks Nationwide Closed on December 27: Fourth Saturday Shutdown Disrupts Weekend Transactions

Banks Nationwide Closed on December 27: Fourth Saturday Shutdown Disrupts Weekend Transactions RBI guidelines enforce closure on the last Saturday of the month, compounded by regional holidays in northern states.

Banks across India observed a mandatory closure on December 27, 2025, as it marked the fourth Saturday of the month under Reserve Bank of India (RBI) regulations. This nationwide holiday halted all physical and digital banking services, including cheque clearances and ATM replenishments, affecting an estimated 1.4 billion account holders. The RBI's uniform policy, in place since 2015, aims to streamline operations and reduce costs, with second and fourth Saturdays designated as non-working days annually.

In addition to the standard Saturday off, select northern states like Haryana, Punjab, and Himachal Pradesh extended the shutdown for Guru Gobind Singh Jayanti, a significant Sikh festival. This layered the impact, closing branches in cities such as Chandigarh and Shimla, where festivities drew crowds to gurdwaras. The Economic Times reported no exceptions for public sector banks like State Bank of India (SBI), while private lenders like HDFC followed suit, redirecting customers to online platforms.

December's holiday calendar has already seen disruptions: Christmas on December 25 closed banks universally, with extensions into December 26 in states like Nagaland for Shaheed Udham Singh Jayanti. Looking ahead, December 30's U Kiang Nangbah in Meghalaya and December 31's New Year's Eve pose minimal risks, but year-end filings could strain digital systems. The RBI's 2025 list confirms 16 national holidays plus regional ones, totaling up to 20 closures in some areas.

This routine halt underscores banking's shift to 24/7 digital access, with UPI transactions hitting 15 billion in November—up 45% year-on-year. Yet, rural users, comprising 40% of the base, face challenges without robust internet, prompting calls for hybrid models. Post-holiday, branches reopen Monday, but festive withdrawals may cause queues.

The closure highlights fiscal discipline amid India's 7% GDP growth, where banking supports Rs 200 lakh crore in deposits. Customers are advised to plan ahead via apps for seamless continuity.