Bank Holidays – Negotiable instruments Act ( Rumours regarding Continuous Bank Holidays )
After the implementation of the 2nd and 4th Saturday holiday, we have witnessed increase in messages that banks will be closed down continuously for 8 days etc., in view of holidays declared under N I Act etc., This propaganda is mainly carried out by small local news papers. Once the news is published in papers about continuous bank holidays, whatsapp is stepping in and the news is spread like a wildfire. These news papers are spoiling the image of bank employees.
It is our opinion that, bank employees should counter the false propaganda. Majority bankers are not aware about the procedure of declaring holiday’s for Bank’s under N I ACT. For countering the false propaganda we should know what the fact is. We hope the following few para’s will give a small insight into the holidays declared under NI Act.
Section 25 of N I Act 1881, has conferred the right to declare a holiday (apart from Sundays, all Sundays are Bank holidays as per N I Act 1881) to central government. For simplicity we are reproducing the section 25 here, but the purpose of the said section is that any negotiable instrument which is due on a particular day will become payable on next day if the payee date is a holiday under N I Act. If a holiday is not declared under N I Act, bankers are bound to open the branches.
Considering the divergent cultural and local customs and traditions of our country Central government has delegated the powers for declaring the bank holidays under N I Act to state governments. While delegating the powers central government has clarified that it can also exercise the right to declare the holiday for banks under N I Act along with states if need arises.
So, as far as banks are considered both state and central governments can declare holidays. However under normal circumstances state governments will be declaring the holidays with regard to Banks under N I Act.
If we compare holidays for state government employees with that of bank holidays declared under NI Act, it will be crystal clear, government employees are benefitted by extra 4 to 5 holidays.
Now coming to the point the news papers are clubbing holidays of different states and claiming that there are continuous holidays. Eg Dasara holidays of Karnataka are clubbed with that of Diwali holidays of Uttarpradesh. Whenever we see such article please do send a mail us and also to the concerned publication and whenever a whatsapp message is received, strongly deny them.
We have uploaded the holidays of different states in a separate page.
Please click the following link