Why am I charged a penalty of more than 18% p.a. on the debit balance? Will Fyers refund the penalty charged once I transfer and clear such debit balance?
We will charge a penalty of 18% per annum on the debit balance. However, an additional amount of GST will be levied at 18% on the penalty amount as per the mandate requirement.
For Instance, let’s say Client ‘A’ had a debit balance of ₹1000 for a period of 1 year. So, Mr. A will be charged a penalty as follows:
- Penalty = ₹180 (i.e., ₹1000*18%)
- GST = ₹32.40 (18% on the penalty amount of ₹180)
- Total = ₹212.40 (180+32.40).
No, The penalty needs to be paid for the number of days the client had a debit balance in his/her trading account. Hence, the amount of penalty charged will not be refunded even after you clear your debit balance.