Id-e-Milad 2025: RBI cancels bank holiday tomorrow, new date declared

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The Reserve Bank of India has revised the bank holiday on Id-e-Milad (Milad-un-Nabi) tomorrow (5 September 2025), after several state governments and market participants requested flexibility in the schedule.

The Reserve Bank of India logo is pictured outside its headquarters in Mumbai.(Mint)

Banks across India will remain open on Friday, reversing an earlier directive that had declared it a holiday under the Negotiable Instruments Act. Instead, the RBI shifted the day off to Monday, 8 September, when certain banking transactions, including those in the government securities market, foreign exchange and money markets, will not be settled.

In Maharashtra, the state government has already confirmed that Mumbai and surrounding areas will observe a public holiday on 8 September for Id-e-Milad, because 5 September was coinciding with the final immersion processions of Ganesh Chaturthi.

To be sure, some states may continue to observe bank holiday on Friday. Gujarat, Karnataka, Tamil Nadu, Uttar Pradesh, Telangana, Kerala, Jammu & Kashmir and Delhi had earlier notified 5 September as a holiday for Id-e-Milad or the Onam festival. This means some branches could remain shut based on local rules, even though banking services will be operational nationally.

The RBI’s decision ensures continuity of banking services on Friday, reducing disruption to payment cycles, cheque clearances and retail banking. However, those dealing in forex, money markets and government securities must account for the new holiday on Monday.

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