Will FYERS charge penalties for debit balances in trading accounts?

Will FYERS charge penalties for debit balances in trading accounts?

If your FYERS trading account reflects a negative (debit) balance of more than ₹100, a penalty is applied. This is intended to discourage outstanding dues and maintain platform integrity. Let’s break down how the penalty is calculated and applied.

How the penalty works?

  • Threshold: Penalty applies when the debit balance exceeds ₹100.
  • Rate: The penalty is charged at:
    • 15% per annum, or
    • 0.041% per day (on the outstanding debit)
  • Accrual: The penalty amount is calculated daily.
  • Charging: The accrued penalty is charged at the end of the month via a Journal Voucher (JV) entry in your ledger.
  • Effective Date: This penalty system has been in place since 1st June 2021. No such penalty was charged before this date.

What if...

ScenarioExplanation
You have a debit balance of less than ₹100No penalty is applied.
You clear your dues mid-monthThe penalty stops accruing from the day the balance is cleared.
You maintain a credit balanceNo penalty is applicable. This applies even if you previously had a debit.
You are unaware of the penalty being chargedYou can verify it in your ledger under 'Journal Voucher (JV)' entries at month-end.
Make sure to monitor your ledger balance under 'Funds & Margin' regularly to avoid unnecessary penalties.
Last updated: 19 Jun 2025