Economics · MSME Regulations
As per the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, what is the penal interest rate mandated for a buyer who fails to make payment to a Micro or Small Enterprise beyond the statutory period?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Bank Rate plus 1% simple interest
- 2Compound interest with monthly rests at two times (2x) the Bank Rate notified by the RBI
- 3Compound interest with monthly rests at three times (3x) the Bank Rate notified by the RBI✓
- 4Simple interest at 18% per annum
Correct answer
Compound interest with monthly rests at three times (3x) the Bank Rate notified by the RBI
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