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Mint
4 days ago
- Business
- Mint
Bank holidays this week, Aug 18-25: Banks across India to be shut on these days
Bank holidays next week, August 18-25, 2025: TheReserve Bank of India (RBI ) has declared several holidays for August 2025. Banks across several Indian cities will remain closed during the upcoming week due to festivals and observances under the RBI's Negotiable Instruments Act. For those who are planning any important activities related to banking transactions or other services, here's a list of the number of days banks will be closed next week so that you can plan accordingly and avoid any last-minute inconvenience. You should note that holidays may differ across states in India due to regional and local observances. It is thus best to check with your local bank branch for theirholiday schedule or list ahead of time to be properly informed and make preparations in case of emergencies or long weekends. August 19 — (Tuesday) — Banks in Agartala (Tripura) to be closed as the city celebrates the birthday of Maharaja Bir Bikram Kishore Manikya Bahadur on this day. August 23 — (Saturday) — Banks across India will be closed as it is the fourth Saturday weekend off. August 24 — (Sunday) — Banks across India will be shut for Sunday weekend holiday. A person can continue to use online or mobile banking services even during national holidays — unless notified to users for technical or other reasons. For cash emergencies, ATMs are open for withdrawals as usual. People can also use their respective bank's app and UPI to facilitate payments. All of the bank's annual holiday calendar is declared by the RBI under provisions of the Negotiable Instruments Act, which deals with the issuance of cheques and promissory notes. Transactions involving these instruments are thus not available during these listed holidays. August 17 — (Sunday) — Banks across India closed for Sunday weekend holiday. August 19 — (Tuesday) — Banks in Agartala (Tripura) to be closed for Birthday of Maharaja Bir Bikram Kishore Manikya Bahadur. August 23 — (Saturday) — Banks across India closed for the fourth Saturday weekend off. August 24 — (Sunday) — Banks across India closed for Sunday weekend holiday. August 25 — (Monday) — Banks in Guwahati (Assam) will be closed on account of Tirubhav Tithi of Srimanta Sankardeva. August 27 — (Wednesday) — Banks in Ahmedabad (Gujarat), Belapur, Mumbai and Nagpur (Maharashtra), Bengaluru (Karnataka), Bhubaneshwar (Odisha), Chennai (Tamil Nadu), Hyderabad (Telangana), Panaji (Goa), and Vijayawada (Andhra Pradesh) will be closed for Ganesh Chaturthi and Samvatsari (Chaturthi Paksha) and Varasiddhi Vinayaka Vrata and Ganesh Puja and Vinayakar Chathurthi. August 28 — (Thursday) — Banks in Bhubaneshwar (Odisha) and Panaji (Goa) to be closed for the second day of Ganesh Chaturthi and Nuakhai. August 31 — (Sunday) — Banks across India closed for Sunday weekend holiday.
News18
12-06-2025
- Business
- News18
RBI's Repo Rate Cut: What It Means For Your Fixed Deposit Returns And Tax Outgo
Last Updated: Banks have started cutting FD rates, reducing returns for retirees and conservative investors who rely on them The Reserve Bank of India's recent decision to reduce the repo rate by 50 basis points to 5.50% has created a ripple effect across the financial ecosystem. While the move is aimed at reviving economic momentum amid easing inflation, it carries notable implications for both borrowers and savers, particularly in terms of taxation on interest income. What This Means for Borrowers Home loan holders and other borrowers on floating interest rates will be among the immediate beneficiaries. A lower repo rate typically leads to reduced lending rates, meaning lower EMIs. For instance, a Rs 50 lakh home loan with a tenure of 20 years may see EMIs drop by approximately Rs 1,500 per month, offering relief to households juggling multiple expenses. With a cumulative deduction of 100 basis points in the repo rate in 2025, banks have been steadily decreasing the fixed deposit interest rates. According to SBI research fixed deposit rates have declined by 30 to 70 basis points since February 2025. Short and medium term fixed deposits are likely to witness the most serious rate cuts. For example, a 1 year fixed deposit rate dropping from 7% to 6.5% would result in Rs 5,000 less annual interest on a Rs 10 lakh deposit. So, the situation is less favourable for fixed deposit (FD) investors. Banks have already begun lowering FD interest rates, which means that savers, especially retirees and conservative investors who depend on FDs, may earn less on their investments, according to CA Shefali Mundra of ClearTax. 'A 6% FD for someone in the 30% tax bracket effectively yields just 4.2%—barely ahead of inflation. With rate cuts, this post-tax return may drop further," says Mundra. While the repo rate cut itself doesn't alter tax laws, its effect on interest income is undeniable. As deposit rates fall, so do the absolute interest earnings, which in turn reduces the tax liability in numerical terms. However, the relative tax burden increases, as a larger portion of the now-reduced interest income goes towards taxes. Smart Strategies for FD Investors in a Falling Interest Rate Scenario As interest rates continue to decline, fixed deposit (FD) investors may need to rethink their approach to safeguard returns. Here are some strategies to consider: 1. Ladder Your FDs: Spread your investments across FDs with different maturities. This helps manage reinvestment risk and ensures liquidity at regular intervals. 2. Explore Government-Backed Savings Schemes: Consider alternatives like the Senior Citizen Savings Scheme (SCSS) or National Savings Certificates (NSC), which often offer better returns and are less influenced by repo rate changes. 3. Look into Short-Term Corporate Bonds: Top-rated corporate bonds with 2–3 year tenures may offer higher yields than traditional FDs, with relatively manageable risk. 4. Evaluate Hybrid Mutual Funds: Hybrid funds, which invest in a mix of debt and equity, can provide better returns than FDs while keeping risk moderate. 5. Keep an Eye on Inflation: With CPI inflation estimated at 3.7% for FY26, real returns from FDs may be negligible. Diversifying into equity mutual funds could help preserve purchasing power over the long term. 'The key is diversification and tax efficiency. Investors must weigh not just returns, but also the post-tax impact," adds CA Mundra. tags : Fixed deposit Location : New Delhi, India, India First Published: June 12, 2025, 08:03 IST News business » tax RBI's Repo Rate Cut: What It Means For Your Fixed Deposit Returns And Tax Outgo
