As India prepares to welcome 2026, banking customers need clarity on branch operations during the New Year period. The Reserve Bank of India has released its official holiday calendar, providing state-specific guidance for January 1, 2026, and the entire month ahead.

New Year's Day Banking Operations

Banking operations on January 1, 2026, will vary significantly across different states due to India's region-specific holiday structure. The RBI's official calendar indicates selective closures rather than a nationwide shutdown.

Customers planning banking visits on January 1 should verify with their local branches beforehand, particularly for cash withdrawals, cheque deposits, or loan-related documentation. While physical branches may close in designated states, digital banking infrastructure remains fully operational.

Complete January 2026 Holiday Schedule

January 2026 presents a comprehensive holiday calendar with multiple regional and national observances affecting banking operations across different states.

Regular Weekly Closures

Beyond festival-specific holidays, banks will maintain their standard closure schedule throughout January 2026:

• Sundays: January 4, 11, 18, 25
• Second Saturday: January 10
• Fourth Saturday: January 24

These closures apply uniformly across all states and Union Territories, regardless of regional holiday variations.

Digital Banking Alternatives

During physical branch closures, customers retain access to comprehensive digital banking services. ATM networks, UPI payment systems, and online banking platforms continue operating normally, ensuring essential financial transactions remain uninterrupted. Mobile banking applications provide account management, fund transfers, and bill payment facilities throughout holiday periods.

Customers should plan accordingly for the extended holiday period, particularly around Republic Day and regional festivals, to avoid any inconvenience in their banking requirements.

The Reserve Bank of India has issued a stern warning about the potential risks posed by widespread stablecoin adoption, stating it could significantly threaten India's monetary sovereignty and financial stability. The central bank outlined these concerns in a special feature within its bi-annual financial stability report released on Wednesday, emphasizing that "trust in money is the foundation for maintaining financial stability."

Key Risks to Monetary Control

The RBI emphasized that stablecoins create important financial stability risks due to their inherent vulnerabilities. The central bank particularly highlighted concerns about foreign currency denominated stablecoins, which could erode monetary control and weaken the transmission channels of domestic monetary policy. The RBI maintains a cautious stance on crypto assets, including stablecoins, prioritizing sovereign digital infrastructure to safeguard monetary sovereignty amid global shifts.

Fundamental Shortcomings of Stablecoins

According to the RBI, stablecoins position themselves as an alternative form of money but fall short of foundational requirements expected from a sound monetary system. The central bank identified three critical deficiencies that make stablecoins inadequate as a monetary instrument.

The RBI noted that in their short history, stablecoins have proven volatile and vulnerable to confidence shocks and structural fragilities, citing episodes such as the May 2022 collapse of TerraUSD and the March 2023 US banking turmoil. Currently, the central bank maintains that risks from stablecoins to macrofinancial stability outweigh their purported benefits.

CBDC Advocacy and Policy Position

The central bank strongly advocates for Central Bank Digital Currencies over privately issued stablecoins. The RBI argues that CBDCs can achieve the benefits stablecoins claim to offer—efficiency, programmability, and instant settlement—while maintaining the credibility and safety of central bank money. The central bank emphasized that central bank money must remain the ultimate settlement asset and anchor for trust in the financial system.

Regulatory and Security Concerns

The RBI highlighted several critical concerns regarding stablecoin regulation and security. Without adequate regulation, stablecoins can be exploited for serious crimes, including money laundering, terrorism financing, and weapons proliferation financing. The central bank cautioned that stablecoins can circumvent controls on capital movement and complicate macroeconomic management, particularly for emerging economies like India where capital flow management frameworks play a crucial role in preserving external sector stability.

Stablecoins can bypass current foreign exchange transfer systems, impeding the effectiveness of capital flow management measures designed to maintain macroeconomic stability, safeguard foreign exchange reserves, and manage risks associated with sudden and volatile capital flows.

Global Regulatory Landscape

The RBI acknowledged that stablecoin growth could be driven by emerging legal and regulatory frameworks across major jurisdictions between 2023 and 2025, including the United States, European Union, Singapore, Hong Kong, and Japan. However, the central bank maintains its position that jurisdictions must carefully assess attendant risks and determine policy responses appropriate to their financial systems to mitigate risks posed by rapid stablecoin growth.