SIP Update: What will happen if there is no money in the bank on the SIP payment date, how much penalty will be charged? India-employmentnews  |  27/06/2025 14:15:02

Today everyone uses SIP to invest in mutual funds. Through SIP, you can invest in installments. Today you can start SIP by investing Rs 100. If you also invest in mutual funds through SIP, then this article is for you.

Have you ever wondered, what will happen if you do not have enough money on the payment date of SIP, due to which the SIP payment stops, then what will happen in that situation?

Today people mostly use auto payment for payment, auto payment means that on the day of the payment date, the payment amount will be automatically deducted from your account. Similar autopayment is used for SIP as well.

What will happen if the SIP payment fails?

If there is not enough money in your bank account on the payment date of SIP, then in such a situation the bank can impose a penalty for failed transaction. According to the information received in this regard, if you use ECS (Electronic Clearing System) / NACH (National Automated Clearing House) for SIP payment, then the bank can charge you a bounce charge. This charge can be from Rs 150 to Rs 500.

SIP can also be stopped

SEBI's rule gives the mutual fund company (asset management company) the right that if the payment is missed 3 to 5 times by the beneficiary, then in such a situation they can stop the SIP. The asset management company decides on its own how many times it has to forgive the missed payment.

Benefits of SIP

Investors get flexibility at many stages in SIP. Like you can choose the period according to your convenience. The investment amount can be increased. If any economic disaster occurs, then you can also pause the SIP in between.

Investing in SIP gives the benefit of compounding. Therefore, it is beneficial to keep money in SIP for a long time. The longer you invest, the more you will benefit from compounding.


Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.

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