On September 5, 2025, banks in many parts of India will be closed in observance of Id-E-Milad, also known as Milad-un-Nabi, which commemorates the birth of the Prophet Muhammad. Some regions will also be observing Thiruvonam, a festival celebrated in Kerala, on the same day.
RBI's Order and Bank Closures
The Reserve Bank of India (RBI) has announced that banks in several states will be closed on September 5. These states include Gujarat, Mizoram, Maharashtra, Karnataka, Tamil Nadu, Uttar Pradesh, Kerala, and Delhi. However, it's important to note that a recent update indicates a change in holiday schedules specifically for Mumbai and its suburbs.
Revised Holiday in Mumbai
Initially, September 5 was declared a bank holiday for Id-E-Milad in Mumbai. However, this has been revised, and the public holiday for Mumbai city and suburban districts will now be observed on September 8. This change was implemented by the Maharashtra government to avoid overlap with Anant Chaturdashi on September 6, a day when Ganesh idol immersion processions take place. The RBI has also shifted the holiday in response to the Maharashtra government's announcement.
What This Means for Banking Services
While physical bank branches may be closed in certain states on September 5, digital banking services will remain fully functional. Customers can still utilize ATMs, UPI transactions, online banking, and other internet-based options.
For those in Mumbai, banking services will be operational on September 5 but closed on September 8. This applies to money market and banking operations. There will be no transactions and settlements in government securities, foreign exchange, money markets, and rupee interest rate derivatives on September 8. Settlement of outstanding transactions due on September 8 will be postponed to the next working day, September 9.
Id-E-Milad Celebrations
Eid-e-Milad is a significant festival for Muslims worldwide. It is observed on the 12th day of Rabi' al-Awwal, the third month of the Islamic calendar. On this day, Muslims commemorate the birth of Prophet Muhammad by engaging in prayers, processions, and community gatherings. People often wear new clothes, attend morning prayers at mosques, share stories from the Prophet's life, and donate to those in need. The festival is a time for reflection on the Prophet's teachings and guidance.
Other September Bank Holidays
Besides Id-E-Milad and Thiruvonam, September 2025 has other bank holidays. These include:
Banks are also closed on the second and fourth Saturdays of each month and all Sundays.
