Why Is the Penalty Rate on Debit Balances More Than 15 percent p.a. at FYERS?

Why Is the Penalty Rate on Debit Balances More Than 15% p.a. at FYERS?

FYERS charges a flat penalty rate of 15% per annum on debit balances above ₹100. Because this rate is applied daily, the effective rate in shorter periods may appear higher than 15% p.a.

How the Penalty Is Calculated

  • Annual Rate: FYERS applies 15% p.a. on any negative (debit) balance above ₹100.
  • Daily Application: This rate is broken down as 0.041% per day—charged each day your account remains in debit.
  • Effect Over Time: Over multiple debit days or fluctuations, cumulative accruals may make the monthly percentage look more than 15%.

The penalty is calculated daily and posted monthly as a Journal Voucher (JV) in your ledger.

Important: Once the penalty is posted via the JV entry, it is not reversed. Clearing your debit balance sooner helps avoid further accruals.
Tip: To understand when penalties apply on debit balances, refer to this article.

What If...

Scenario / QuestionExplanation / Redirection
Your penalty seems more than 15% p.a.Daily accruals over uneven debit periods or multiple usages can inflate monthly figures. For the full charges matrix, refer to this article.
You alternate between debit and credit frequentlyEach debit period triggers fresh daily accruals, which sum up.
You’re in debit only for a few daysThe daily rate applies even for partial periods.
You want to check penalty methodology & rulesRefer to this article for full terms.

Last updated: 09 Oct 2025