MANAGEMENT

Detailed explanation-1: -➢ Interest shall be levied at 1% for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax was deducted.

Detailed explanation-2: -For Loans above Rs. 25000/-, if the irregularity exceeds EMI or Installment amount, for a period of one month, then penal interest would be charged 2% p.a.(over and above the applicable interest rate) on the overdue amount for the period of default.

Detailed explanation-3: -Bank Rate is now aligned to Marginal Standing Facility (MSF) rate, the penal rate at which banks can borrow money from the central bank over and above what is available to them through theLAF window. In other words, MSF assumed the role of bank rate, once the latter became operational in 2011.

Detailed explanation-4: -Penal Interest on overdue loans When the loan remains outstanding beyond the ‘normal’ tenure ( Between 3 Months and 1 year) without FULL servicing of interest due penal interest may be charged at a rate not exceeding 3% pa (i.e. at the contracted rate plus 300 basis points) on the amount due and payable.