As the name suggests this article will tell you about the Definition of banking holidays i.e what one means when he/she says that today is a banking holiday. And whether like in the past it holds much relevance today in common man’s regular economic activities. In other words, will it disturb his/her working or cause him a monetary loss or loss of any other nature.
Definition of a Banking Holiday
A banking holiday means that a bank’s branch is shut for public operations for the specific date. And as per an RBI mandate, banks are legally bound to share this information with its customers in advance by the agreed-upon channels of communication.
In today’s online world, e-banking has occupied a large share of the entire banking operations both locally and internationally, in a way that a disruption in online banking operations will create a much larger mess as compared to banking holidays i.e an already declared bank holiday, in other words, bank’s branch being shut for operations on the provided/particular date.
Here we will use one case study to discuss this topic in detail:
Case Study :
Suppose you wish to deposit money in your parents account so that they can make a withdrawal at home. But due to Independence day’s holiday banks at both locations are closed for public dealings. So what is the way out and have successful money transfer. You must have heard about CDM (Cash Deposit Machine) and ATM (Automated Teller Machine) in the 24-hour banking article published earlier, both these machines have a backbone operating concept of providing basic banking services 24*7*365 i.e. these machines don’t know anything about banking holidays and are meant for the like-minded people.
So, just visit the CDM nearby your place and deposit the money, now text or inform your parents to make the needed withdrawal from nearby ATM. The job’s done, even on the banking holiday.
To conclude, the banking holiday is a concept that became redundant or thing of the past with e-banking.