The Reserve Bank of India has released its official holiday calendar for January 2026, revealing that bank closures for Makar Sankranti will be limited to select states only. The harvest festival, celebrated on January 14, will result in bank holidays in just four states, while banking operations continue normally across the rest of the country.

Makar Sankranti Bank Closures: Limited State Impact

According to RBI notifications under the Negotiable Instruments Act, banks will remain closed on January 14, 2026, exclusively in Gujarat, Odisha, Assam, and Arunachal Pradesh for Makar Sankranti celebrations. In these states, customers will be unable to access branch-level banking services, including cheque clearing and over-the-counter transactions.

Banking Operations Continue in Majority States

Banks across all other states and union territories will maintain regular operations on January 14, ensuring uninterrupted banking services for the majority of customers nationwide. The selective holiday approach reflects the regional nature of festival celebrations and state-specific public holiday declarations.

Customers should note that digital banking services will remain fully operational even in states observing the holiday. UPI payments, net banking, mobile banking applications, ATM cash withdrawals, and online bill payments will function normally throughout the holiday period.

Complete January 2026 Bank Holiday Schedule

The RBI has outlined a comprehensive holiday calendar for January 2026, featuring multiple regional celebrations:

Regional Festival Considerations

January represents one of India's most holiday-intensive months due to harvest festivals celebrated across different regions. The staggered holiday schedule accommodates regional preferences while maintaining banking accessibility for the broader population. Republic Day on January 26 stands as the only universal banking holiday, affecting all states and union territories nationwide.

Customers in affected states should plan their banking requirements accordingly, utilizing digital channels for urgent transactions during holiday periods.

Several major banks and an audit firm have moved the Bombay High Court Division Bench to challenge an interim order that currently shields businessman Anil Ambani from actions under the Reserve Bank of India's fraud classification framework. The legal battle centers on compliance requirements for forensic audits under RBI's 2024 Master Directions.

Court Proceedings and Timeline

The Division Bench comprising Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad heard the appeal on January 12, 2025. The court has scheduled continuation of arguments for January 14, 2025. The appellants include:

Single-Judge Order Under Challenge

The current legal dispute stems from an earlier ruling by Justice Milind Jadhav, who had restrained the banks from proceeding against Ambani. The single-judge order was based on a prima facie view that the forensic audit relied upon did not comply with RBI's 2024 framework requirements.

According to the RBI's framework, forensic audit reports used to classify accounts as fraudulent must be prepared by statutory auditors registered with the Institute of Chartered Accountants of India (ICAI). In Ambani's case, Justice Jadhav observed that the forensic audit report, dated October 2020 and relating to Reliance Communications and group entities, was signed by a person not registered with ICAI.

Banks' Arguments Against the Stay

Solicitor General Tushar Mehta, representing the banks, presented several arguments before the Division Bench challenging the interim stay. He contended that Ambani's suit was "hopelessly time-barred" and founded entirely on information obtained through a third-party RTI application seeking BDO's registration details.

Mehta's key arguments included:

• The entire cause of action was premised on the RTI application and the Institute's response
• Ambani had long been aware of the forensic audit and had not disputed its conclusions
• The sole ground of challenge was the auditor's non-membership with the Chartered Accountants Institute
• BDO is an approved forensic auditor by SEBI, not "a nobody picked from the street"

Potential Impact on RBI Framework

The Solicitor General warned that allowing the interim stay to continue could have broader implications for the RBI's regulatory framework. He cautioned that the order could undermine the RBI's Master Directions, which bar individuals classified as fraud from accessing credit markets for five years.

Mehta expressed concerns that the stay could:

• Trigger widespread litigation challenging fraud classifications
• Unsettle earlier fraud classifications based on similar audit reports
• Weaken the effectiveness of RBI's fraud prevention measures

He urged the Division Bench to suspend the single-judge order pending final adjudication of the matter. The case highlights the critical importance of procedural compliance in forensic audits used for fraud classification under RBI guidelines.