An official spokesman said all Punjab government offices, boards, corporations and educational institutions would remain closed on January 28 to mark the birth anniversary of Rai.
Born in 1865 in a village in Punjab province (now part of Pakistan), Rai, was one of the tallest figures in the Indian Independence movement.
Popularly known as the 'Punjab Kesari', he was part of the 'Lal Bal Pal' trio.
He died in Lahore, a few weeks after sustaining serious injuries during a non-violent protest against the Simon Commission in 1928.