All public and private sector banks across India will observe a mandatory closure on January 26, 2026, in celebration of Republic Day. The Reserve Bank of India has designated this as a compulsory holiday under its official calendar, ensuring uniform closure across all banking institutions nationwide.

Extended Weekend Impact

The Republic Day holiday creates a three-day long weekend for banking services, as January 24 falls on the fourth Saturday and January 25 is a Sunday. This extended closure will impact in-branch banking operations across the country, requiring customers to plan their financial activities accordingly.

Nationwide Closure Scope

Unlike regional holidays that vary by state, Republic Day represents a uniform national holiday affecting all states and union territories. Bank of India and all other banking institutions will remain shut on January 26 regardless of location. While certain states like Tamil Nadu may observe additional local holidays such as Netaji Jayanti on January 23 in select regions, these do not affect the nationwide Republic Day closure.

Digital Services Remain Operational

Despite physical branch closures, customers can access essential banking services through digital platforms. The following services will remain available 24/7 during the holiday:

While ATMs will remain operational nationwide, customers should note that higher cash withdrawals during the long weekend could lead to temporary cash shortages, particularly in high-traffic cities such as Chennai.

Affected Banking Services

Several banking services will experience disruptions during the closure period:

All pending transactions will resume normal processing when banks reopen on Tuesday, January 27.

Customer Advisory

Banking institutions recommend customers complete urgent in-branch work before January 24 and utilize digital banking applications for transfers, bill payments, and account monitoring. Customers should avoid issuing cheques close to the holiday period, as clearing services will only resume after January 26. This planning becomes particularly important with Union Budget 2026 discussions approaching, which may require timely financial preparation.

The Reserve Bank of India announced a comprehensive package of liquidity infusion measures on Friday, signaling a proactive approach to address tightening conditions in the banking system. The central bank's multi-instrument strategy aims to inject substantial funds into the financial system over the coming weeks to ensure orderly market functioning.

Following a detailed review of prevailing liquidity and financial market conditions, the RBI outlined specific measures designed to ease pressure on banks and stabilize money market operations. The announcement comes as market participants have been closely monitoring liquidity conditions after sustained government cash balances, tax outflows, and forex market operations contributed to tighter surplus liquidity in recent weeks.

Variable Rate Repo Operations

The central bank will conduct a 90-day Variable Rate Repo operation worth ₹25,000 crore on January 30. This measure allows banks to borrow funds at market-determined rates for a significantly longer tenor than the typical overnight liquidity windows, providing more stable funding options for financial institutions.

Foreign Exchange Swap Operations

In a significant dollar liquidity initiative, the RBI will hold a USD/INR buy-sell swap auction of USD 10 billion on February 4, structured with a three-year tenor. These swap operations typically serve dual purposes of easing domestic liquidity pressure while managing volatility in the foreign exchange market.

Open Market Operations

The Reserve Bank will implement open market operation purchase auctions of Government of India securities totaling ₹1 trillion in aggregate value. The substantial securities purchase program will be executed through a structured approach across multiple dates.

Market Impact and Objectives

The RBI's comprehensive liquidity package is expected to deliver multiple benefits to the financial system:

• Improve durable liquidity conditions across banking institutions
• Support enhanced credit flow to various sectors
• Stabilize short-term money market rates
• Ensure orderly functioning of financial markets

The central bank emphasized its commitment to flexible liquidity management, stating it will "continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly liquidity conditions." Detailed operational instructions for each measure will be issued separately to market participants.

Strategic Approach

The announcement demonstrates the RBI's strategic approach to monetary policy implementation, utilizing targeted liquidity tools rather than broad policy rate adjustments to address short-term market stress. This methodology allows the central bank to maintain its established stance on inflation control while addressing specific liquidity challenges through precise interventions. The coordinated timing of these operations across January and February reflects careful planning to maximize market impact and ensure sustained liquidity improvement.