Today, October 19, 2024, marks the third Saturday of the month, and as per the banking schedule in India, banks are open today. Since September 2015, all scheduled and non-scheduled banks, including public, private, foreign, cooperative, regional rural, and local area banks, observe holidays on the second and fourth Saturdays. On all other Saturdays, banks operate as usual.
The Reserve Bank of India (RBI) determines bank holidays each year, dividing them into three categories: holidays under the Negotiable Instruments Act, holidays under the Negotiable Instruments Act and Real-Time Gross Settlement (RTGS) Holidays, and Banks’ Closing of Accounts. These holidays can vary by state and city.
Since today is a working Saturday, key money market segments like call/notice/term money, market repo, and Collateralised Borrowing and Lending Obligation (CBLO) operate as on any other business day. Additionally, services such as RTGS, National Electronic Fund Transfer (NEFT), Cheque Clearing, and Electronic Clearing Services (ECS) are fully functional today.
There is ongoing discussion about moving to a five-day work week for banks, with the Indian Banks Association (IBA) and employee unions reportedly reaching an agreement. This new schedule is expected to be implemented from December 2024, pending government approval.
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