Debit Balance Penalty at FYERS: Calculation and Refund Policy

Why am I charged a penalty of more than 15% p.a. on a debit balance at FYERS?

FYERS applies a fixed annual rate of 15%, but the charges are calculated daily, which can sometimes give the impression of a higher rate in shorter timeframes.

How the penalty is calculated?

  • Annual rate: FYERS charges a flat 15% per annum on any debit (negative) balance above ₹100.
  • Daily application: This annual rate is divided into a daily rate of 0.041%, which is applied each day your account remains in debit.
  • Example: If you had a ₹1000 debit balance for one year, your penalty would total ₹150 (i.e., ₹1000 × 15%).

Because the penalty is time-based, it accumulates daily and is charged monthly through a Journal Voucher (JV) entry in your ledger.

What if...

ScenarioExplanation
Your penalty seems higher than 15%The daily accruals over multiple debit periods or fluctuations may result in higher monthly totals.
You frequently switch between debit and creditEach debit period triggers fresh penalty accruals, which can add up quickly.
You stayed in debit for only a few daysThe daily charges still apply for those days—even a short debit period incurs a penalty.
Penalties are not reversed once charged, even if the debit is cleared. To avoid such charges, it's best to maintain a consistently positive ledger balance.
Last updated: 19 Jun 2025

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