India Bank Holidays February 23: Weekend Closures to Hit Cheque Clearing
The RBI bank holiday calendar shows nationwide branch closures on Saturday 28 February and Sunday 1 March. Cheque and Negotiable Instruments Act items may clear slower across India, which can affect UK businesses paying suppliers or receiving proceeds. Digital rails stay live, yet counter services pause. To reduce cash flow strain next week, advance cheque deposits and branch-only requests. This update tracks India bank holidays 2026 and what UK investors should do now to keep settlements on time.
What the RBI schedule means for the coming weekend
The RBI bank holiday calendar confirms a fourth-Saturday closure on 28 February and a Sunday closure on 1 March. Over-the-counter services will pause across public and private banks, while digital channels remain available. Expect cheque lodgements made late this week to push into next week’s clearing. See the official round-up from business press here: Bank holidays next week.
Beyond the weekend, state notifications can shift local branch hours and clearing windows. Reports highlight closures in Sikkim, Maharashtra, Arunachal, and Mizoram around this period, which can slow regional cheque presentment even if national rails run. Review updates referenced in the RBI bank holiday calendar and media tracking: RBI Holiday Calendar: selected states. Build in extra time if payees or banks sit in these locations.
Cheque clearing and NI Act instruments: timing to expect
Cheque Truncation System cycles typically need one to two working days, and local cut-offs vary by bank and city. A Friday or late-Thursday deposit can slip past the weekend pause and settle next week. To reduce risk, target deposits by Tuesday or Wednesday. The RBI bank holiday calendar helps set expectations, but your branch cut-off and city grid will drive the actual value date.
UK SMEs exporting to India, or funds moving coupon income home, should plan for a slower cash conversion cycle if cheques are involved. NI Act instruments cannot be encashed during counter closures, so factor a short lag into payables and receivables. The RBI bank holiday calendar is a useful guide, but align it with counterpart location, bank cut-offs, and your working capital plans.
What still moves: UPI, IMPS, NEFT, RTGS
UPI, IMPS, NEFT, and RTGS will operate through the weekend, subject to routine maintenance windows. For time-sensitive transfers, shift flows to UPI NEFT RTGS where possible. Use purpose codes that your Indian bank recognises and confirm beneficiary details in advance. The RBI bank holiday calendar does not pause these rails, so digital push payments can bridge short gaps from branch closures.
GBP to INR remittances from UK banks or fintechs may process while Indian counters are closed, then queue for beneficiary credit if local checks are needed. Confirm your provider’s Friday cut-off and expected credit date. If you usually fund brokers or suppliers by cheque, consider a one-off digital transfer this week. Keep the RBI bank holiday calendar in view when timing conversions and disbursements.
Action checklist for 23–28 February 2026
Advance cheque deposits to 24–25 February; verify branch cut-offs; confirm beneficiary bank and city; keep scanned images of instruments; switch urgent items to UPI NEFT RTGS; inform counterparties of expected dates; hold a small buffer in INR balances for weekend obligations; track state notices that may change local clearing.
If you fund Indian broker accounts, avoid cheque routes this week and use instant rails. For corporate actions or redemptions paid by cheque, expect next-week value dates. Review India bank holidays 2026 for upcoming Ramazan bank holidays that could affect April schedules. Keep the RBI bank holiday calendar bookmarked for weekly planning.
Final Thoughts
Weekend closures on 28 February and 1 March will pause counters across India, so cheque and NI Act instrument settlements may push into next week. Digital payments on UPI, IMPS, NEFT, and RTGS continue, which gives UK investors and SMEs a faster option for urgent flows. The practical steps are simple: deposit cheques by midweek, confirm cut-off times, and use digital rails for time-critical obligations. Watch for state-specific notices that can stretch timelines in some cities. Keep the RBI bank holiday calendar close, and align cash planning with counterpart locations to avoid friction.
FAQs
Are banks across India closed on 28 February and 1 March?
Yes. The RBI bank holiday calendar shows a fourth-Saturday closure on 28 February and a Sunday closure on 1 March. Branch counters pause nationwide, which can delay cheque handling. Digital rails like UPI, IMPS, NEFT, and RTGS remain available, so use them for urgent transfers during the weekend.
Will my cheque clear if I deposit it on Friday in India?
It might, but timing depends on your bank, city, and cut-off. A Friday lodgement often slips to next week when counters pause over the weekend. To reduce risk, deposit by Tuesday or Wednesday. Check the RBI bank holiday calendar and your branch’s stated cut-offs for accurate value dates.
Do UPI, IMPS, NEFT, and RTGS work during bank holidays?
Yes. UPI, IMPS, NEFT, and RTGS operate through weekends, subject to scheduled maintenance. They can credit beneficiaries even when counters are closed, though some bank-specific checks may add short delays. For urgent payments, prefer these rails over cheques during the dates highlighted in the RBI bank holiday calendar.
Should UK SMEs expect delays during Ramazan bank holidays?
Potentially. Some states observe Ramazan bank holidays, which can slow local clearing even if national digital rails keep running. If payees sit in affected cities, allow extra time. Use UPI, NEFT, or RTGS for critical payments and keep reviewing the RBI bank holiday calendar for updated regional notices.
Disclaimer:
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.