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The Reserve Bank of India (RBI) has recently taken a major and important decision. On 31 March 2025, an order has been issued to keep banks connected to all government transactions across the country open. Earlier on this day, banks were to be closed in most states due to Ramadan Eid (Eid-ul-Fitr), but now RBI has directed to keep banks open to properly deal with government transactions on the last day of FY 2024-25.

This order will apply to all banks that include government payment, tax collection and other financial transactions. That is, if you want to do government transactions – such as income tax, GST, pension, subsidy etc. – then you will be able to take all these services on 31 March.

Why was there earlier a holiday on 31 March?

In fact, Ramadan Eid is falling on 31 March 2025, due to which banking services were likely to be closed in almost all the states of the country. Banking operations were going to be done only in Himachal Pradesh and Mizoram. But since this date is the last date of FY 2024-25, and on this day there are many important government transactions, the RBI and the government decided that banking services should not be interrupted on this day.

This decision of the government makes it clear that there should be no obstruction in the process of financial system, especially when works like tax filing, government payment and annual closing are to be dealt with.

For which services will the banks open?

According to government guidelines, banks will be open for the following services on 31 March:

• Government Tax Payment:
  • Income tax
  • GST
  • custom duty
  • Excise duty
• Payment of pension and grant:
  Government employees and pensioners get their payment on time, so this service will continue.
• Distribution of government pay and allowances:
  Processing of salary and allowances of government employees will continue on this day.
• Payment of government schemes and subsidies:
  Payments like PM Kisan, Ujjwala Yojana, LPG subsidy can also be processed on this day.

This decision will provide relief to the general public as well as government departments and there will be no hindrance in the run-up of the last day.

Bank Holiday will remain on 1 April 2025 – but why?

Although the banks will remain open on 31 March, but the bank holiday will remain the next day i.e. April 1, 2025 Tuesday. The reason for this is not a festival but like every year, the annual account of banks is the beginning of closing and new financial year.

Every year on April 1, banks close their old accounts and create balance sheets for the new financial year, so banking operations are postponed on this day. However, banking services will continue in some states like Meghalaya, Chhattisgarh, Mizoram, West Bengal and Himachal Pradesh.

Digital banking services will continue

If you are thinking that the closure of the bank these days will affect your digital transactions, then there is no need to panic.

• mobile banking
• Internet banking
• UPI Payment
• Online tax payment

The services like 31 March and 1 April will continue normally. You can easily do fund transfer, bill payment, tax filing etc. However, if a transaction stucks or has any doubt, it would be better to contact your nearest bank branch.