September is a festive month in India, with major cultural and religious celebrations bringing communities together. On September 5, 2025, people across the country are observing two significant festivals — Eid-ul-Milad (Milad-un-Nabi or Id-e-Milad) and Onam. These celebrations naturally raise the question of whether banks will remain open or closed today. The Reserve Bank of India (RBI) recently issued a clarification regarding the holiday schedule, ensuring that citizens have a clear understanding of the banking and financial operations for the first week of September.
RBI Clarifies the September 5 Bank Holiday
Initially, September 5 was declared as a public holiday under Section 25 of the Negotiable Instruments Act, which governs bank holidays in India. However, the RBI later revised this schedule. The central bank announced that September 5 would no longer be treated as a nationwide bank holiday, and the official closure would instead take place on September 8, 2025 (Monday).
The shift was made following a request from the Maharashtra government, which confirmed that Mumbai and nearby regions would observe a holiday on September 8 for Eid-e-Milad. This adjustment was necessary because the earlier date clashed with the final immersion procession of Ganesh Chaturthi, a massive cultural event in the state.
Banks Open, But With Regional Exceptions
While the RBI has kept September 5, 2025 as a working day nationwide, certain states continue to recognize the day as a public holiday due to local traditions. States including Gujarat, Karnataka, Tamil Nadu, Uttar Pradesh, Telangana, Kerala, Jammu & Kashmir, and Delhi had previously listed September 5 as a holiday for Eid-ul-Milad or Onam.
This means that although banking services like ATMs, UPI, net banking, and mobile banking remain fully functional, some physical bank branches may stay closed in states observing these regional holidays. Citizens are therefore advised to check local notifications before planning branch visits.
Financial Market Operations
The RBI circular not only addressed banking schedules but also clarified the functioning of financial markets. On September 5, all transactions in government securities, foreign exchange, money markets, and rupee interest rate derivatives are operating as usual.
However, the transactions scheduled for September 8 will now be pushed to September 9. Similarly, the auction of Government of India Dated Securities conducted on September 4 will be settled on September 9. The Liquidity Adjustment Facility (LAF), including Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF), will also align with this revised calendar.
Festivals Marking September 5
Eid-ul-Milad (Milad-un-Nabi)
Eid-ul-Milad commemorates the birth anniversary of Prophet Muhammad. It is marked by special prayers, processions, and gatherings that emphasize peace and brotherhood. Across India, mosques and community centers are decorated, and people participate in charity and social activities.
Onam
In Kerala, Onam remains the most important cultural festival of the year. Celebrated with grandeur, it features Pookalam (floral designs), Onam Sadya (traditional feasts), and traditional art forms like Vallam Kali (boat races). The festival honors the return of the legendary King Mahabali and showcases Kerala’s rich heritage.
Looking Ahead: September 2025 Holidays
September continues to be a month full of festivals. While September 5 is a working day for most of India, the official RBI holiday is now scheduled for September 8, 2025. Beyond Eid and Onam, regional holidays linked to Ganesh Chaturthi, Vishwakarma Puja, and other local observances will also affect banking schedules throughout the month.
Conclusion
To summarize, September 5, 2025, is not a nationwide bank holiday. Banks across India remain open, but some states may observe closures due to Eid-ul-Milad and Onam. The official RBI-declared holiday has been shifted to September 8, 2025, to accommodate both religious and cultural observances.
For customers, this means that while digital banking and online services remain uninterrupted, local branches may or may not be operational depending on regional rules. At the same time, financial markets will continue their activities as scheduled, with settlement dates adjusted accordingly.
As India celebrates both Eid and Onam today, citizens are reminded to plan banking tasks carefully while enjoying the festive spirit that marks the beginning of September.
