According Bhavishya Purana, in the war between Gods and demons, Indra was disgraced by the King Bali. Sachi, Indra’s wife consulted Vishnu and received a bracelet made of cotton thread, calling it holy. Sachi tied it around Indra’s wrist and blessed him with her prayers. Lord Indra successfully won the battle. From then women used to pray and guard men.
According Bhagavata Purana and Vishnu Purana, Lord Vishnu won the three worlds from the King Bali. King Bali asked Lord Vishnu to stay in his palace and Lord Vishnu accepted. Goddess Lakshmi didn’t like the friendship. So she tied a Rakhi to Bali. When Bali asked what gift she wanted, she asked him to release his husband from his request. King Bali accepted the gift and Lakshmi as his sister.
When Krishna was beheading Shishupal, Krishna has cut his finger. By seeing this Draupadi tore a piece of cloth from her saree and tied it Krishna. Krishna was in debt by this action and would repay each “thread” when the time comes. Whenever Draupadi needed Krishna’s help she would pay for his help.
It is celebrated on the full moon day of Shravan month in Hindu calendar. According to English calendar it comes in the month of July/August. It is celebrated in all parts of the country and major parts of Nepal, Pakistan and Mauritius.
On this day sisters tie Rakhi to brothers. Rakhis is also shared between close friends. Ceremonies are conducted to tie Rakhi around the wrists of soldiers. In Kumaon region of Uttarakhand, Raksha Bandhan is celebrated with Janopunyu. Men change their janeu on this day. In West Bengal and Odisha, Raksha Bandhan is also known as Jhulan Purnima. Devotees pray Lord Krishna and Radha. In Maharashtra Raksha Bandhan is celebrated as Narali Poornima. Lord Varuna is prayed on this day and coconuts are thrown into sea as offering to Lord Varuna. In Jammu it is common to fly Kites on this day. In Punjab and Haryana, people also celebrate Salono on this day.