RBI Mandates Agency Banks to Remain Operational on March 31, 2026 Holiday
The Reserve Bank of India (RBI) issued a crucial directive on Tuesday, requiring banks that manage government receipts and payments to maintain operations on 31 March 2026. This decision comes despite the day being designated as a public holiday in various regions across India, primarily for Mahavir Jayanti. The central bank's move aims to guarantee that all government-related financial transactions for the financial year 2025–26 are accurately recorded and settled before the fiscal year concludes on that same date.
Official Notice Details and Customer Communication
According to the official notice released by the RBI, agency banks have been specifically instructed to keep all branches involved in government business open for customer transactions on Tuesday, 31 March 2026. The notice emphasizes that banks must widely inform customers about the availability of banking services on this day. This proactive communication is intended to enable government departments, taxpayers, and other stakeholders to execute their transactions smoothly and without any disruption, ensuring efficient closure of the fiscal year.
Role and Significance of Agency Banks
An agency bank is a financial institution authorized by the RBI to perform government-related banking functions on its behalf. These responsibilities include:
- Collecting various taxes and revenues
- Processing government payments and disbursements
- Handling other transactional activities for both central and state governments
Currently, all public sector banks and select private sector banks serve as the RBI's agents. Only designated branches of these agency banks are permitted to conduct government banking business, as per the guidelines available on the RBI's official platform.
List of Banks Expected to Remain Open
This directive implies that several prominent lenders will keep their relevant branches operational on 31 March 2026. Key banks affected include:
- HDFC Bank
- ICICI Bank
- Bank of Baroda
- IDFC FIRST Bank
- IndusInd Bank
- Bank of India
- Punjab National Bank
- State Bank of India
- Bandhan Bank
- Canara Bank
- UCO Bank
- And several other agency banks
Context of Bank Holidays in March 2026
In March, the RBI typically declares multiple bank holidays, which can impact services requiring physical branch visits. For March 2026, there are 10 RBI-declared bank holidays excluding the one for Mahavir Jayanti on the 31st. These holidays often vary by region based on the RBI's scheduled calendar, affecting local banking operations differently across states.
Comparison with Upcoming Bank Holidays
Meanwhile, looking at the immediate schedule, the week between 2 and 8 February has only one bank holiday, which falls on 8 February due to it coinciding with a weekend. No additional holidays are anticipated during that period, as there are no public celebrations or state observations planned, ensuring minimal disruption to regular banking services.
