What is a Restricted Holiday?
Restricted holidays are holidays that an employee can avail from the list of Gazetted/restricted holidays. Furthermore, these are holidays only for employees and not for the organization or government departments. Their offices do not close on that day.
In India, restricted holidays are provided to employees to accommodate the festival and cultural diversity of India. People of Punjab celebrate with gusto the lovely festival of Baishakhi, but it is not celebrated all over India; however, Punjabi folks all over India celebrate it, making this holiday very important for them. Likewise, Tamil people observe Pongal, but not every state does, so Pongal can be a restricted holiday for Tamil employees to celebrate.
This highlights the need to provide restricted holidays to employees of different cultural backgrounds to show respect for our cultural pluralism. By doing so, the government has satisfied the people of different religions.
I hope this gives a background on restricted holidays.