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

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.

New Year closures: what RBI’s list shows

RBI’s state-wise calendar indicates bank branches will be closed on December 31 in Mizoram and Arunachal Pradesh. On January 1, New Year’s Day, branches remain closed across eight states. Digital services operate, but counters will not. For specifics, refer to the state list reported by Times of India source. This sets the tone for bank holidays 2026 early in the year.

January 2026 bank holidays also include festival-linked breaks such as Makar Sankranti and Pongal in select states, plus Republic Day nationwide. Exact dates and states vary, so check the latest RBI bank holiday list by state. Economic Times offers a helpful state-wise view for January’s schedule source. Note that branch closures affect over-the-counter services even as online rails stay available.

UPI, IMPS, NEFT, and RTGS run 24×7, including on bank holidays. You can transfer funds, pay bills, and manage routine transactions online. However, branch-based services, locker access, demand drafts, and in-person remittances will pause. Cheque Truncation System clearing also does not run on holidays, so cheques move on the next working day. Keep cut-off times and settlement cycles in mind when planning bank holidays 2026.

Impact on settlements, payrolls, and cheques

With December 31 closed in Mizoram and Arunachal Pradesh, any end-of-month branch tasks in these states must be finished earlier. Paper instructions and manual approvals will not process that day. For states observing January 1, plan vendor payouts and receivables before the break. If you rely on counters for cash or paper instruments, align your timeline with bank holidays 2026 to avoid delays.

If your payroll relies on cheques or branch visits, move approvals to December 30 or use 24×7 rails such as NEFT or UPI for credit on holidays. Confirm with your bank if any maker-checker steps need staff on working days. For multi-state teams, match credit dates to local closures referenced in the RBI bank holiday list.

CTS does not operate on a bank holiday. A cheque deposited on a holiday gets presented on the next working day, which can push settlement from T+1 to T+2 in some cases. Example: deposit on a Wednesday holiday, present on Thursday, funds by Friday or later. Build buffers in January 2026 bank holidays to avoid missed due dates.

Practical planning for businesses and investors

ATMs and cash deposit machines usually remain available, though cash loads can be slower around holidays. Withdraw or deposit in advance if you need large amounts. Prepare authorization letters or KYC documents early for locker or branch services. Keep a list of branch managers and relationship officers for quick coordination before bank holidays 2026.

Broker pay-ins, IPO applications, and margins funded via UPI typically work on holidays, but broker back-office cut-offs may change. Payouts tied to cheques will wait for the next working day. Confirm settlement windows with your broker and bank. This helps avoid stress during January 2026 bank holidays when markets and banks follow different clocks.

Mark New Year closures, key festival dates, and Republic Day in your 2026 holiday calendar India. Set invoice and payroll due dates one business day earlier. Stagger vendor credits to avoid bunching. Keep a petty cash buffer and enable UPI Autopay where possible. Review the RBI bank holiday list weekly through January for late state updates.

State-specific notes and how to verify

Branches in Mizoram and Arunachal Pradesh close on December 31. Complete branch-dependent year-end tasks such as cheque issuance, DDs, and account updates by December 30. If you collect outstation cheques there, expect the first working day of January to be busy. Plan early to avoid queues and backlogs during bank holidays 2026.

Eight states observe New Year bank closures on January 1. If you issue inter-state payments, verify both origin and beneficiary state calendars, as a holiday at either end can slow posting. Use UPI or NEFT for urgent payments. Align invoice due dates away from January 1 to keep cash flow smooth.

Check your bank’s website or mobile app for branch-specific timings and any local notifications. Compare with the RBI state list published via major dailies. Save helpline numbers, RM contacts, and escalation paths. Reconfirm locker and token systems for the first working day of January, since footfall is high right after January 2026 bank holidays.

Final Thoughts

New Year closures kick off bank holidays 2026 with December 31 shut in Mizoram and Arunachal Pradesh and January 1 off in eight states. Digital rails work, but counters and cheque clearing pause. The smartest move is to shift cash and paper tasks one day earlier, use UPI or NEFT for time‑critical credits, and add buffer days to invoices and payrolls. Map your 2026 holiday calendar India against vendor and customer locations, since inter-state differences matter. Keep bank contacts handy, confirm cut-offs with your broker, and review the RBI bank holiday list as January progresses. Plan now to avoid blocked funds and missed dates.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.