The availability of mortgage payment breaks will not be extended beyond this Wednesday.
The main retail banks will instead offer them on a case by case basis to customers.
It follows a meeting between a number of government ministers and the CEOs of AIB, Bank of Ireland, Ulster Bank, KBC and PTSB earlier.
The measure was first introduced in March to ease the pressure on people whose jobs were affected by the pandemic.
Brian Hayes, CEO of the Banking and Payments Federation, has denied there's a "cliff edge" on Wednesday.
"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 and that there's no "cliff edge" coming later this week.
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."
