Bank Holiday on January 3: Banks to Remain Closed in Uttar Pradesh, RBI Explains the Reason

By Siddhi Jain | Jan 2, 2026, 18:20 IST

If you are planning to visit a bank branch on Saturday, January 3, this update is important for you. According to the Reserve Bank of India (RBI) holiday calendar, banks will remain closed in Uttar Pradesh on January 3 due to a state-specific holiday. Customers in other parts of the country, however, will be able to access banking services as usual.

Why Are Banks Closed on January 3?

January 3 marks the birth anniversary of Hazrat Ali, a day of religious significance in Islam. On this occasion, the Uttar Pradesh government has declared a bank holiday across the state. As a result, all bank branches in Uttar Pradesh, including major cities such as Lucknow and Kanpur, will remain shut on Saturday.

This has led to some confusion because banks generally remain open on the first Saturday of the month. While that rule applies nationwide, state-specific holidays notified by the RBI can override the usual working-day schedule. That is exactly what has happened in this case.

Banking Services in Other States

It is important to note that this holiday is limited to Uttar Pradesh only. Banks in other states and union territories will function normally on January 3. Customers outside UP can carry out routine banking work such as cash deposits, withdrawals, cheque clearances, and branch-based services without interruption.

Will Digital Banking Services Be Available?

Even though physical bank branches in Uttar Pradesh will remain closed, digital banking services will continue to operate smoothly. Customers can rely on:

ATMs for cash withdrawals
UPI payments
Internet banking
Mobile banking apps

These services will remain active throughout the day, ensuring that essential financial transactions are not disrupted.

Advice for Bank Customers in Uttar Pradesh

If you live in Uttar Pradesh and had planned to visit a bank branch on January 3 for any urgent work, it is advisable to reschedule your visit to another working day. Alternatively, you can complete most basic transactions using digital platforms to avoid inconvenience.

Bank Holidays in January 2026: Full Overview

January 2026 includes several bank holidays across different states due to festivals, anniversaries, and national observances. Below is a simplified overview of key bank holidays this month:

January 1 (Thursday): New Year and Gaan-Ngai festival – Banks closed in cities including Aizawl, Chennai, Gangtok, Imphal, Itanagar, Kohima, Kolkata, and Shillong.
January 2 (Friday): New Year celebrations and Mannam Jayanti – Banking services affected in Aizawl, Kochi, and Thiruvananthapuram.
January 3 (Saturday): Hazrat Ali’s birth anniversary – Banks closed in Uttar Pradesh (Lucknow).
January 4 (Sunday): Weekly holiday – Banks closed nationwide.
January 10 (Saturday): Second Saturday – Banks closed across India.
January 11 (Sunday): Weekly holiday – Nationwide closure.
January 12 (Monday): Swami Vivekananda Jayanti – Banks closed in Kolkata.
January 14 (Wednesday): Makar Sankranti / Magh Bihu – Banks closed in Ahmedabad, Bhubaneswar, Guwahati, and Itanagar.
January 15 (Thursday): Pongal and Uttarayan Punyakal – Bank holiday in Bengaluru, Chennai, Gangtok, Hyderabad, and Vijayawada.
January 16 (Friday): Thiruvalluvar Day – Banks closed in Chennai.
January 17 (Saturday): Uzhavar Thirunal – Banks closed in Chennai.
January 18 (Sunday): Weekly holiday – Banks closed nationwide.
January 23 (Friday): Netaji Subhas Chandra Bose Jayanti, Saraswati Puja, and Basant Panchami – Banks closed in Agartala, Bhubaneswar, and Kolkata.
January 24 (Saturday): Fourth Saturday – Banks closed across India.
January 25 (Sunday): Weekly holiday – Nationwide closure.
January 26 (Monday): Republic Day – Banks closed in most cities across India.

Why Checking Bank Holidays in Advance Is Important

Bank holidays in India vary by state and depend on local festivals, religious observances, and government notifications. While national holidays apply across the country, state-specific holidays can affect banking operations in select regions only. Checking the RBI holiday list in advance can help customers plan transactions better and avoid last-minute hassles.

Key Takeaway

Banks will remain closed in Uttar Pradesh on Saturday, January 3, due to Hazrat Ali’s birth anniversary, as per RBI guidelines. Branches in the rest of the country will function normally, and digital banking services will remain uninterrupted. Customers, especially in UP, should plan their banking activities accordingly to avoid inconvenience.