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Saturday, August 23, 2014

23/08/2014 – Holiday in Karnataka under Negotiable Instruments Act 1881 - Impact


                Iconic Kannada writer, academician and thinker U R Ananthamurthy passed away at a private hospital in the City on Friday evening.

                As a mark of respect for the departed writer, Karnataka Government has declared a 3 Day State mourning. Educational institutions too are closed.

                Banks and other Financial Institutions are closed as the State Government has declared the holiday under Negotiable Instruments Act 1881.

A bank holiday in India is a public holiday which is declared specially for the Banks and other Financial Institutions. Not all public holidays are classified as Bank Holidays. Bank Holidays are declared by Central/State Governments/ Union Territory under the Negotiable Instruments (NI) Act, 1881.

The 82-year-old Jnanpith awardee died of multiple organ failure at 6:33 pm. Dr H Sudarshan Ballal, director of Manipal Hospital, said that Ananthamurthy was admitted to the hospital 10 days ago.

Impact of the sudden Bank Holiday:
01)   Physical transactions will be affected
02)   Online Transactions will function as usual, as RTGS/NEFT is open.
03)   Clearing will take a major hit, with Inward Cheques being received and debited to respective customer’s accounts.  Cash cannot be deposited in case of insufficient balance to clear the inward cheques.


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