Indian banking industry has seen tremendous changes in recent years because of technology innovation, hyper competition within Indian banks and foreign banks, new product launches by the government and many others. And all this demands, holidays to the bank employees every year; and there is no doubt about it.

And as we are on the verge of entering into the year 2020; here is the table showing list of bank holidays in 2020.

There would be total 39 holidays for bank employees in India in 2020. Of which, 2 holidays fall on Sunday which is Republic Day and Muharram.

Note that, depending on the state, the bank employee lives in additional leaves are granted for the respective occasion celebrated in the state. For e.g. Pongal is holiday in state of Andhra Pradesh, Arunachal Pradesh, Pondicherry & Tamil Nadu but not Maharashtra

Advantages & Disadvantages of Bank Holidays on Economy

While there is no doubt that every employee needs holidays to energize himself/herself, spend quality time with the families; but there are good and bad of having too many holidays. Although there is no proven statistical relationship between holidays and a country’s economy, there are positive and negative effects of having so many holidays a year.

Advantages:

(1) As bank employees or any normal public takes holidays; there is an increase in shopping spends, dining, travel, etc; which directly and indirectly benefits various industries (small or large) thereby fueling the country’s GDP; as they are inter dependent on each other. For e.g. increase in travelers, increases the occupancy in hotels.

(2) Biggest benefit is the health of the employee; as it reduces stress, increases productivity and creativity, boosts emotional stability.

Disadvantages:

(1) Especially during consecutive holidays or long weekends i.e. holiday on Friday and/or Monday along with Saturday and Sunday off; the profitability of the bank drops. ATM machines typically dry out, individuals cannot make large purchases in cash since ATMs are out of cash often.

(2) More expenses for companies, as they have to pay employees even during the holidays.

(3) Problems are created for normal public due to bank closure. For e.g. they cannot withdraw cash from the bank. So in places where cash is essential, products/services cannot be purchased due to non-availability of cash.

(4) Stock markets, bonds markets are closed for trading because of which foreign inflow of money stops on the holidays in addition to the domestic investment.

(5) In companies where contract workers are paid hourly; they will not get paid on the holidays; depending on the contract term.

Author Bio:

Hi, I am Nikesh Mehta owner and writer of this site.

I’m an analytics professional and also love writing on finance and related industry. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business.

I can be reached at nikeshmehta@allonmoney.com. You may also visit my LinkedIn profile.