The availability of mortgage payment breaks will not be extended beyond this Wednesday.
Instead, the main retail banks will offer them on a case by case basis only to customers.
It follows a meeting between a number of Government ministers and the CEOs of the five main banks - AIB, Bank of Ireland, Ulster Bank, KBC and PTSB - earlier.
The scheme is due to end on Wednesday.
Brian Hayes, CEO of the Banking and Payments Federation (BPFI), has denied there is a 'cliff edge' coming.
"What's coming to an end in terms of the six month break is a blanket basis: what we're now encouraged to do by our regulators is to do that assessment on a case by case basis.
"So we've got to have those conversations with people to make sure there's a way out of this for people.
"And people shouldn't be frightened by that.
"Just because you become a non-performing loan doesn't mean you can't become a performing loan again".
Tánaiste Leo Varadkar said the banks must continue to offer payment breaks to customers and businesses that still need them.
After the meeting, he said: "It's in everyone’s interest that people and firms are given more time to get back on their feet.
"We want to make sure that COVID results in a lost year of economic activity not a lost a decade and that means forbearance and loan restructuring where appropriate.
"For this reason the banks must continue to offer payment breaks to individuals and business that still need them.
"Following on from today, the banks agreed that this would be done on a case by case basis with other options also being made available - reduced payments and interest-only, for example."
He added that anyone who is struggling should contact their bank and expect that arrangements will be made based on each individual's circumstances.
"Banks must be understanding of people’s needs at this really difficult time and cognisant of the extraordinary year 2020 has been.
“There is no cliff edge coming on September 30th. This is merely the last day on which people and firms can apply for a Covid-related payment break if they don’t have one already", he said.
Finance Minister Paschal Donohoe said: "Payment breaks provided temporary relief and breathing space to borrowers. It is essential that borrowers and lenders discuss all options to ensure sustainable outcomes, on a case by case basis.
"Lenders need to demonstrate a continued awareness of customers' financial situations and to deal with cases in the most sensitive way possible".
He added that the Money Advice and Budgeting Service (MABS) is available free to anyone who wishes to have an objective discussion on their options.
