Why is there an interest on overdue / debit penalty charge in my ledger?

After adjusting for cash margins available in your trading account, the entire value of purchased shares will have to be paid by 10:50 a.m. on the settlement day (T+1). 
  • Interest @ 0.05% per day will be applicable from T Day for any dues not cleared by the settlement day.
  • Interest will not be charged on T Day if the outstanding balance is cleared on T+1.
  • Interest on non-payment will be shown as an 'Interest on Overdue' charge in your account. 

For example, Mr Jomon and Mr Kiran buy 100 shares of ITC at Rs. 300 per share on Monday. 

Mr Jomon transfers funds and clears his debit by 11 a.m. on Tuesday. Hence, no interest is charged in this case.

However, Mr Kiran transfers funds on Wednesday. Since the settlement day is Tuesday (T+1), he will be charged interest at the rate of 0.05% for two days i.e., Monday and Tuesday.

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