reserve Bank of India asked banks If consecutive holidays affecting the exchequer during working days (foreign currency) transactions and other international business transactions, people privy to the development said. Several banking officials said that bankers have started discussions on this, but many are in favor of continuing with the existing system.

A senior bank official said the issue was discussed in a meeting last month.

“RBI has stated that it has received certain references in this regard, and has sought our views on the suggestion that India should undertake international transactions, particularly treasury operations and SWIFT-based operations, during the holidays declared under the Negotiable Instruments Act ” told ET.

In December, banks will be closed for 14 days, including nine bank holidays.

Another senior bank official said the regulator has also sought an update on the existing practices in PSBs for undertaking treasury and SWIFT-based transactions during the holidays. “We also shared information on the laws and practices adopted in other countries for international business transactions during the holiday.”

However, bankers believe that most countries announce such ‘bank holidays’ well in advance and there has been no adverse impact on Indian banks as well. Global business or foreign exchange transactions on account of holidays that have been declared in advance. “We are in favor of continuing with the current arrangement,” said another banker on condition of anonymity.