The trading volume at Indian equities and bond markets is also expected to be slim Friday as a lot of payments are routed through state-run banks.

'In bond markets, banks are big players and hence volumes will be down. As settlements and clearance process are hampered, equity trading may also get affected,' said Jagannadham Thunuguntla, equity head at SMC Capitals.

It is estimated that an average 3.52 millon cheques (valued around Rs.26,767 crore) were cleared everyday during May 2009.

Private sector banks are open, but operations which involve transactions with public sector banks are expected to be affected.