Will UPI and NEFT work during January 2026 bank holidays?

Yes. UPI, IMPS, NEFT, and RTGS operate 24x7, including on holidays. You can send and receive funds, pay bills, and manage routine transfers. Branch counters, cheque clearing, demand drafts, and locker access pause, so plan paper-based tasks before the holiday to avoid settlement delays.

How do bank holidays affect cheque clearance?

CTS clearing does not run on a bank holiday. A cheque deposited on a holiday is presented on the next working day, which can shift settlement by one business day or more. Deposit cheques earlier, or use UPI or NEFT for urgent payments that cannot wait for branch processing.

What should businesses do to align payrolls with January closures?

Move approvals to the working day before the holiday, especially in states closed on December 31 or January 1. Use UPI or NEFT for timely credits. For cheque-based payrolls, advance deposits and allow extra time for CTS. Share the January schedule with staff and vendors in advance.

Global Market Insights

India Bank Holidays 2026: New Year Closures by State — December 31

ByHuzaifa Zahoor December 31, 2025

India’s bank holidays 2026 start with New Year closures that vary by state. RBI’s schedule shows branches shut on December 31 in Mizoram and Arunachal Pradesh, and on January 1 across eight states. More January closures follow for key festivals and Republic Day. Digital channels like UPI, IMPS, NEFT, and RTGS stay live, but branch work and cheque clearing pause. We explain what this means for end-of-month settlements, payrolls, and time‑sensitive payments, and how businesses can use the RBI bank holiday list to plan ahead.