Bank Holidays in October 2025: Diwali, Bhai Dooj, and Chhath Trigger Nationwide Closures

When the Reserve Bank of India released its official list of bank holidays for October 2025, millions of Indians realized their calendars were about to get crowded — not with meetings, but with festivals. From Diwali to Chhath Puja, the month is a cascade of religious observances that shut down banking operations across large swaths of the country. The impact? Cash-dependent transactions stall, small businesses delay payments, and families scramble to complete urgent financial tasks before the closures begin. Here’s the full picture — down to the day, the state, and the ritual that triggers it.

Diwali and the Four-Day Banking Freeze

October 2025 opens with a national holiday on October 2 — Mahatma Gandhi Jayanti and Dussehra — closing banks nationwide. But the real banking disruption comes later. Diwali begins on October 18 with Dhanteras and culminates on October 23 with Bhai Dooj. The core Diwali day — October 21 — falls on a Tuesday, with the main rituals occurring between 5:54 PM and 8:16 PM. That evening, banks in Assam, Goa, Punjab, Uttarakhand, and Uttar Pradesh will shut down, according to ClearTax. But the ripple effect lasts longer.

On October 22, Govardhan Puja leads to school closures in Uttar Pradesh, Bihar, and Haryana — though banks remain open in most places. Then, on October 23, Bhai Dooj triggers full bank closures in seven states: Bihar, Gujarat, Sikkim, Manipur, Uttar Pradesh, West Bengal, and Himachal Pradesh. That’s more than a third of India’s states. For many families, this day is sacred — sisters apply tilak to brothers, and financial gifts are exchanged. Banks know this isn’t just tradition; it’s transactional.

Chhath Puja: A Two-Day Shutdown in the Heartland

What makes October 2025 unique is the intensity of Chhath Puja — a four-day festival rooted in the Gangetic plains. Unlike Diwali, which spreads nationwide, Chhath is deeply regional. October 27 brings the evening offering (Shyam Ghata), and banks in Bihar, Jharkhand, and West Bengal will close. The next day, October 28, the morning offering (Usha Arghya) triggers another shutdown — but this time, only in Bihar and Jharkhand. In Patna and Ranchi, branches will stay shuttered. In Chennai or Bengaluru? Normal business hours.

This regional variance isn’t an oversight — it’s policy. The Reserve Bank of India delegates holiday decisions to state-level authorities, respecting cultural diversity. A bank in Mumbai doesn’t close for Chhath. A bank in Muzaffarpur can’t open. The RBI’s 2025 calendar reflects this balance: national unity on Gandhi Jayanti, but local sovereignty on folk festivals.

Who Gets Hit Hardest?

Small shopkeepers in Varanasi who rely on daily cash deposits. Gig workers in Hyderabad waiting for UPI settlements. Students in Lucknow paying tuition fees before the holiday rush. These aren’t abstract groups — they’re real people whose routines are disrupted. One shop owner in Patna told a local reporter, “I wait until the 26th to deposit my Diwali sales. If the bank closes on the 27th, I’m stuck with cash under my mattress for a week.”

Even digital transactions face limits. While the Reserve Bank of India allows online transfers up to ₹1 lakh per day via UPI, not everyone has access to smartphones or knows how to use them. Elderly customers, rural entrepreneurs, and daily wage laborers still depend on physical branches. The RBI’s digital push hasn’t erased the human need for face-to-face banking — especially during festivals.

Why This Matters Beyond the Calendar

The October 2025 holiday list isn’t just about convenience — it’s a mirror to India’s cultural fabric. When the Reserve Bank of India approves a holiday for Chhath in Bihar but not in Kerala, it’s acknowledging that Hinduism isn’t monolithic. It’s regional, layered, and lived differently in every village.

Compare this to the U.S., where federal holidays are uniform. India’s system is messy — but it’s authentic. It respects that a festival celebrated with river offerings in Patna is just as valid as one celebrated with lamps in Delhi. The RBI doesn’t force homogeneity. It allows pluralism to shape the economy.

What’s Next? Preparing for the Shutdown

Experts advise three steps before October 2025:

1. Complete large transactions — like property payments or business transfers — before October 17.
2. Ensure your UPI apps are linked to multiple bank accounts, in case one bank’s system slows down during peak usage.
3. Withdraw cash in advance if you rely on physical payments — especially in Bihar or Jharkhand, where ATMs may run dry.

And remember: just because a bank is closed doesn’t mean your money is. Mobile banking, NEFT, and RTGS remain active on most holidays — except when the RBI declares a full closure. Always check your bank’s website for state-specific notices.