Bank holidays ahead in June 2026: What happens when your fixed deposit matures on a bank holiday

Going ahead in June, there are three bank holidays. One of them falls on Friday (June 26, 2026) for Muharram, while the other two are the fourth Saturday and Sunday. So, if you hold a fixed deposit (FD) and the same is maturing on a bank holiday or another non-working day, here’s what happens in such a case and how the maturity amount is determined

The Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Directions, 2025 updated on June 17, 2026, specify what has to be done in such a scenario.

As per the RBI's directions, if a fixed deposit receipt has a maturity date that falls on a bank holiday, the bank will pay interest for the intervening non-working day at the contracted rate of interest.

This means the customer will get an interest rate at the applicable rate for the non-working day also as it is unable to pay the FD proceeds on the maturity date.

“If a term deposit is maturing for payment on a non-business working day, a bank shall pay interest at the originally contracted rate on the original principal deposit amount for the non-business working day, intervening between the date of the maturity of the specified term of the deposit and the date of payment of the proceeds of the deposit on the succeeding working day,” the RBI says. .

Further, in the case of re-investment deposits and recurring deposits, banks have been directed to pay interest on the maturity value for the intervening non-business working day.

In addition, the directions also specify what will happen to a deposit account in case it has been transferred from one bank branch to another.

The RBI rules mention that the deposit account in such a case will be deemed to be transferred from one bank branch to another. The FD will continue to be governed by the terms of the contract as agreed to between the customer and the bank branch that is being taken over. Also, the same rate of interest will be payable till maturity on such transferred deposits, as was payable at the time of takeover of the branch.