Wholesale Banking Penal Charges

Details

SN	Nature of default /delay	Reckoning of Penal Charge	Penal Charge applicable rate payable monthly^
1.	Payment default for: a. Interest/Principal b. irregular due to drawings beyond DP Limit (only Fund Based) c. BG invocation or LC devolvement or export credit liquidation from non-export proceeds (as applicable) d. other charges (other than reimbursement) as may be specified	Overdue Penal Charge may be charged from the due date till such time as the default amount is paid	Penal charge# of 2% p.a. (excluding GST) on default/ overdue amount as applicable. For Supply Chain Finance, Penal charge# of 6% p.a. (excluding GST) on default/ overdue amount as applicable.
2.	For any other breach	Penal Charge to be levied from the date of delay or non-compliance with stipulated covenants till the same are cured/complied with to the satisfaction of the Bank.	Fund Based – Penal charge# of 2% p.a. (excluding GST) on the Outstanding amount. For Supply Chain Finance, Penal charge# of 6% p.a. (excluding GST) on default/ overdue amount as applicable. Non-Fund Based – Nil
3.	Non-creation/perfection of security within the timeliness	Penal Charge due to non-creation of security within the timeliness, and/or fails to comply with any of the covenants relating to the Security to be calculated from expiry of timeline for creation/perfection	Fund Based – Penal charge# of 2% p.a. (excluding GST) on the Outstanding amount. For Supply Chain Finance, Penal charge# of 6% p.a. (excluding GST) on default/ overdue amount as applicable. Non-Fund Based – Nil

# Penal Charges shall be levied over and above the Applicable Rate of Interest.

^{^} In syndication, selldown or consortium cases, the applicable penal charges shall be aligned with those levied by the other lenders considering common documentation is executed with the borrower.

Wholesale Banking Penal Charges

Details

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