Knowledge Centre

Earnest Money Deposit (EMD) in Bank Auctions

Earnest Money Deposit (EMD) is the refundable security a bidder pays before an e-auction. Understanding EMD mechanics protects lakhs of your capital.

NPAAUCTION.IN Editorial4 min readUpdated 20 July 2026
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How much EMD is charged

EMD is usually 10% of the reserve price of the lot. On a ₹50 lakh reserve, that's ₹5 lakh payable before the auction date.

It is paid online via NEFT/RTGS or bank challan to the bank's designated account mentioned in the auction notice.

KYC and portal registration

Bidders must register on the e-auction portal (eBKray, MSTC, C1 India, or the bank's own) and upload PAN, Aadhaar, address proof and photograph. A digital signature certificate (DSC) may be required for high-value lots.

When EMD is refunded

  • Losing bidders — refunded within 3–7 working days of auction closure.
  • Auction cancelled or postponed by the bank — refunded to all participants.
  • Winning bidder — EMD is adjusted against the 25% deposit due on the same day as the auction.

When EMD is forfeited

  • Winning bidder fails to pay the 25% (less EMD) on auction day.
  • Winning bidder fails to pay the remaining 75% within 15 days (extendable to 90 with penalty by bank consent).
  • Any misrepresentation in KYC or bidder ineligibility surfaces later.

Frequently asked

Can I use a bank guarantee instead of cash EMD?

Some auction notices allow it, but most PSBs insist on RTGS. Read your specific notice.

Do I earn interest on EMD?

No. EMD sits in a non-interest-bearing account and is returned at the same principal amount.

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