According to reports from The Economic Times, there are three bank holidays scheduled for June 2026. The first falls on Friday, June 26, 2026, for Muharram, while the remaining two are on the fourth Saturday and Sunday. This creates potential scenarios where fixed deposits may mature on non-working days, requiring specific regulatory handling. Recent reports indicate that banks will be closed for three consecutive days this week, highlighting the importance of understanding FD maturity rules during holiday periods.
As reported by The Economic Times, the Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Directions, 2025 updated on June 17, 2026, specify clear guidelines for FD maturity on bank holidays. According to the RBI, when a fixed deposit receipt has a maturity date falling on a bank holiday, the bank will pay interest for the intervening non-working day at the contracted rate of interest. This ensures customers receive interest at the applicable rate for the non-working day, as the bank cannot pay FD proceeds on the maturity date itself.
According to the RBI directions reported by The Economic Times, re-investment deposits and recurring deposits receive additional consideration. Banks have been directed to pay interest on the maturity value for the intervening non-business working day in these cases. The RBI's comprehensive framework ensures consistent treatment across all deposit categories during holiday periods, with recent reports emphasizing that banks will be closed for three consecutive days this week, making these rules particularly relevant for customers with maturing deposits.
As reported by The Economic Times, the RBI rules address deposit account transfers between bank branches. The deposit account is deemed to be transferred from one bank branch to another, with the FD continuing to be governed by the terms agreed between the customer and the original branch. The same rate of interest remains payable till maturity on such transferred deposits, as was applicable at the time of branch takeover. Recent developments show that banks will be closed for three consecutive days this week, making branch transfers and related FD operations more challenging during this period.
