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Banks Closed on 2nd and 4th Saturdays, No NEFT/RTGS; But Full Days on Other Saturdays

In a body blow to the political parties that either wanted to work all Saturdays or to party with bankers on all weekends, the RBI has in a sober note pronounced that counting of Saturdays will go in the following manner:

  • First Saturday, FULL working day, banking system to operate till 6:30 pm or such time as a normal weekday
  • Second Saturday, Holiday!
  • Third Saturday, FULL working day, like the First.
  • Fourth Saturday, Holiday!
  • Fifth Saturday, Sorry bankers, this round goes to FULL working day.

What “FULL Working Day” means is that there will be all banking functionality:

  • Cheque clearance
  • NEFT and RTGS
  • Go to the bank and get sold insurance disguised as a fixed deposit
  • Operate your lockers (if you had got one)
  • Banks can borrow from RBI (Repo or MSF) or park excess cash with it

Which means that on the Second and Fourth Saturdays of a month, none of the above will happen. (Except your banker can attempt to call you to sell you insurance, of course)

But on all Saturdays, no markets are open (G-Sec, Forex, Derivatives etc.)

In general the keeping of banks open only half a day didn’t make sense, I suppose. But it follows a government notification.

This is good for bankers. A full holiday or a full working day is what makes sense anyhow. What’s a “half” day? It’s neither here nor there.

(FWIW, I vote for full time markets all days. Have them running all day if you like. It will actually reduce volatility in the longer term. )

  • Biplob says:

    Where did political parties come into this ~X(
    Anyways, half days may not be good for anybody concerned … except for the ‘aam janta’. Now if we get boatloads of cash on a friday evening or are informed on friday evening that we need to get boatloads on a Saturday/Sunday, then we’re screwed if it’s a 2nd or 4th Saturday.
    Why are you thinking like a banker /:)

  • rohitms says:

    Full time markets . Please we need to get a life.

  • Gold Bug says:

    You missed one more racket. SIP in Mutual Funds when FIIs are exiting emerging markets from equity, debt, carry trade, loans and deposits. These SIP investors will be good bag holders for FIIs.Bankers get good commissions on SIP products.