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Final Day of Financial Year: RBI Instructs Banks to Stay Open for Government Duties

Prime Highlights: 

  • Even though March 31, 2025, is an Eid-ul-Fitr public holiday in most states, the Reserve Bank of India (RBI) has asked all agency banks to work for government business. 
  • This will make financial year-end transactions run smoothly, with the collection of tax and other banking activities relating to the government. 

 Key Facts: 

  • March 31, 2025, being the last working day of the financial year makes it an essential day for financial activities of the government. 
  • The RBI guideline will be implemented at all the agency banks conducting government business so as to facilitate compliance with fiscal duties on a timely basis. 
  • The banks themselves would be functioning but general services would be curtailed with regards to observation of holidays across multiple states. 

Key Background: 

Eid-ul-Fitr is an important festival in India that celebrates the culmination of Ramadan. It is a public holiday in most states, which impacts businesses, schools, and government offices, even banks. On the other hand, as March 31, 2025, is also the last day of the financial year, Reserve Bank of India (RBI) has directed agency banks to continue working for government transactions. 

The end of the financial year is a critical period for banking organizations, as this includes closing of accounts, tax realizations, pension payments, and other budgetary obligations. Delay in such transactions may halt economic activities. To avoid any such problems, the RBI has made sure that agency banks remain operational even on the public holiday. 

Though these banks shall remain open for the purpose of government transactions, normal banking transactions for the common public like deposits, withdrawals, and loan procedures might be curtailed in some areas. Customers are asked to opt for digital banking avenues for their activities and make an appropriate plan for it so as not to remain inconvenienced. 

This directive reflects the RBI’s commitment to maintaining financial stability while also respecting cultural and religious observances. By balancing both aspects, the move ensures that government-related financial transactions proceed smoothly without affecting the festive spirit of Eid-ul-Fitr. 

In short, while March 31, 2025, is a public holiday in much of India, banking activities on account of government transactions will go ahead as scheduled. The move by the RBI is to help usher in an uneventful financial year-end so that the necessary economic activity continues uninterrupted.