According to sources with several posts and articles being circulated on social media about Banks remaining shut for three consecutive days in lieu of Dussehra and Diwali holidays, customers are in a state of panic when they come across headlines like Banks to remain shut this festive season, ATMS may run out of cash and Shortage of cash at bank ATMs due to holidays and these articles have pressed the panic button.
Furthermore this kind of news creates a kind of fear psychosis among people and send them rushing to the nearest ATMs to hoard cash. Hence this leads to a huge rush at the banks and ATMs, especially during the festive season and eventually the ATMs also run dry which confirms the worst fears triggered by such news items. Meanwhile banks do not shut down continuously for three consecutive days unless there is a holiday on a Friday, followed by a 2nd or 4th Saturday and a Sunday at one go.
Furthermore if a bank functions on a holiday, there cannot be any business hours on that day and there will be no financial transactions made during that day even though the Bank remains open. Moreover every 2nd and 4th Saturday is a holiday for all the banks as per the RBI Gazette notification made in the year 2015. Presently Reserve Bank of India (RBI) clarifies the position on the functioning of banks on a holiday declared under the Negotiable Instruments Act in the interest of public.
