My brother was on a trip for Diwali last year and forgot that his loan EMI was due on that day. It suddenly hit him that it was a bank holiday. To be honest, he got panicked and called me to know does EMI deducted on bank holidays. I researched a bit and found the answer is yes.
Will EMI Debit on Bank Holiday?
In India, your EMI payments, SIP debits, and even salary credits will happen even on bank holidays. It is all because of the rule changed by the Reserve Bank of India effective August 1, 2021.
From that date onward, the National Automated Clearing House (NACH) system operates every day, including Sundays and gazetted holidays. This ensures scheduled debits and credits occur as usual, whether banks are open or closed.
Previously, automated instructions like EMI debits from your bank account were executed only on working days. If an EMI date fell on a holiday or Sunday, the debit would be processed on the next working day, often creating uncertainty in cash flow and timing.
But under the updated rule, those instructions now run on the scheduled dates even if banks are shuttered.
As a borrower, my brother’s loan EMI got deducted on the exact due date. I hope you understand does EMI cut on bank holiday.
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The National Automated Clearing House (NACH) system would be accessible every day, except holiday or weekends, according to a statement from the Reserve Bank of India (RBI). Coming to your query, does EMI cut on bank holiday? If it is a credit card EMI, it will be deducted even on a bank holiday in India. However, it depends on the mode of payment and the banking system in use.
Is EMI Deducted on Bank Holidays?
On days when the bank is closed, such as Sundays, bank holidays, and gazetted holidays, any auto-debit instructions provided by the account holder are not processed.
Since most businesses use NACH for salary credits and other purposes, these do not take place on bank holidays.
Some EMIs use ECS. It may delay the transaction if it falls on a bank holiday. In such cases, EMI is deducted on the next working day without penalty.
If you manually pay EMI via UPI, net banking, or cheque, and it’s a holiday, the payment gets processed on the next working day.
However, the bank automatically debits credit card EMIs, even on holidays, following its billing cycle.
I hope this resolves your query.
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How EMI is Deducted from Credit Card?
Does EMI Cut On Bank Holiday?
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2025-03-21T08:23:30+00:00 2025-03-21T08:23:31+00:00Comment
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