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?

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Banking · MSMED Act 2006

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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Compound interest with monthly rests at three times (3x) the Bank Rate notified by the RBI.

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Answer 1

Bank Rate plus 1% per annum.

Answer 2

Compound interest at the prevailing market rate.

Answer 3

Compound interest with monthly rests at three times (3x) the Bank Rate notified by the RBI.

Answer 4

Simple interest at 18% per annum.

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