What happens if I miss SIP instalment in India?

As per the new rules of NAV applicability, units will be allotted on all purchase transactions, including SIPs, as per the NAV of the date when money is available in fund's bank account for utilization (before cut-off time). So, in case you miss a SIP instalment, you'll not get units for the said instalment, as the amount wouldn't reach Fund/ Scheme's Bank Account. MF/AMC won't levy any penalty whatsoever for the missed SIP Instalment. However, if SIP debit in the bank account was missed due to insufficient balance in the account, then your bank may levy penal charges for ECS/ACH return / bounce.

If you miss your SIP installments twice in a row and third time also if it does not go through, then your SIP gets cancelled and you will have to again register the SIP.

This might invite bank penalties too. So it is better to pause the SIP in case of inadequate funds and restart once the funds are there.

Incase you miss one instalment, there is no problem. The next SIP will automatically still be debited next month on the due date. Only if you miss 3 SIP installments in continuity, in that case the SIP will cease. 

SIP (or Systematic Investment Plan) is a method of investing in a regular manner. However, all such systems are meant for supporting investments and not becoming a burden. However, our recommendation is to continue the SIP unless absolutely necessary as the regular investments are often an integral part of financial plans.

For exceptional circumstances, when one is not in a position to make the regular investments, the SIP can be stopped. There are some instances where this is for a short period, in which case a facility of SIP Pause offered by many AMCs can be used. SIPs can then simply be resumed when the period is over.

In the worst case scenario where you miss a SIP instalment in an unplanned manner, then also there is nothing to worry (other than the investment plan taking a hit). Most AMCs allow up to 3 misses for the SIP to stop. So, just missing one instalment may mean that you need to do nothing and the SIP would automatically try again and go through the next instalment if funds are available in the linked savings account. However, if because of repeated SIP misses, the SIP stops then one would need to re-register the SIP for it to start again.


In India, if an investor misses one SIP instalment, then it is not an issue. If three consecutive SIP instalments are missed then the SIP is automatically cancelled. However, if the instalment is missed on account of insufficient balance, the banks have now started levying bank charges for such transactions.


All the data/information shared above are opinions/ views that solely belong to the Mutual Fund Distributors. UTI Mutual Fund (acting through UTI Trustee Company Pvt Limited) / UTI Asset Management Company) owes no responsibility/ liability whatsoever in this regards. The information contained should not be construed as forecast or promise, and the only objective of this initiative is to educate the consumers to take a more informed investment decision. Any investment decision taken based on the information provided in the content above shall be at sole risks, cost and consequences of the user.



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