Bank Holiday Tomorrow? Why Christmas Week Could Mean A Long Break For Banks

As the festive season gathers pace, many bank customers across India are asking a simple but important question: Will banks be open this Christmas week, or are we heading into an extended holiday stretch?

According to the Reserve Bank of India’s (RBI) official holiday calendar, banks across the country will observe a mix of national and state-specific holidays around Christmas in December 2025. While December 25 is the only pan-India bank holiday, several states, particularly in the North-East, will see banks remain shut for multiple consecutive days, effectively creating a long Christmas break.

Here is what customers need to know to avoid last-minute surprises.

Christmas Week Bank Holidays: When and Where

Christmas Day, which falls on December 25, is the only day when banks across India, both public and private sector, will remain closed nationwide. However, regional holidays before and after Christmas mean that banking operations will be disrupted for longer periods in certain states.

As per the RBI schedule, banks will remain shut on:

• December 24 (Christmas Eve): Aizawl, Kohima and Shillong
• December 25 (Christmas): All states and Union Territories
• December 26 (Christmas Celebration): Aizawl, Kohima and Shillong
• December 27 (Christmas): Kohima only
• December 30 (Death Anniversary of U Kiang Nangbah): Shillong only
• December 31 (New Year’s Eve/Imoinu Iratpa): Aizawl and Imphal

In states such as Mizoram, Nagaland and Meghalaya, this cluster of holidays means banks could remain closed for as many as five days during the final week of December.

Why Bank Holidays Differ Across States

Bank holidays in India are governed by a combination of national observances, religious festivals and regional events notified under the Negotiable Instruments Act. This is why a bank branch in one state may be open while another in a different state is shut on the same day.

Christmas is widely observed across several states, particularly in the North-East, where additional holidays are often declared for Christmas Eve and post-Christmas celebrations. These region-specific holidays are reflected in the RBI’s annual holiday calendar.

What Banking Services Will Be Affected

On bank holidays, branches remain closed for in-person services. This means customers will not be able to carry out over-the-counter transactions such as cash deposits, withdrawals, demand draft issuance or passbook updates.

Services governed under the Negotiable Instruments Act, including cheque clearing and bill collection, are also suspended on these days. Customers relying on cheques for payments or settlements should factor in these non-clearing days to avoid delays.

What Will Continue to Work During Holidays

Despite branch closures, most digital banking services will continue to function normally. Customers can still access ATMs for cash withdrawals, UPI-based payments, mobile banking applications, internet banking services, and digital fund transfers such as IMPS.

These channels ensure that routine transactions can continue even when branches are shut. However, customers are advised to ensure adequate cash availability, especially in areas where ATMs may see higher usage during holiday periods.

Why Planning Ahead Matters This Christmas

With year-end deadlines approaching, the Christmas week is often a busy period for financial transactions. Salary credits, bill payments, tax-related work and business settlements are all common in late December. A cluster of bank holidays can slow things down if customers are unprepared.

Those who need to submit cheques, complete documentation, or carry out branch-dependent services are advised to plan ahead and complete essential work soon. Businesses, in particular, should account for non-clearing days while scheduling payments.