RBI Bank Rate
History.

Under Section 16 of the MSMED Act, 2006, a buyer who delays payment to a Micro or Small enterprise beyond the statutory period (15 days by default, or up to 45 days under a written agreement) owes compound interest at three times the RBI Bank Rate, with monthly rests, for every day the payment remains outstanding. The RBI Bank Rate itself changes periodically along with RBI's broader monetary policy stance, so the applicable rate depends on when each invoice fell overdue, not just today's rate.

This is exactly the calculation our MSME Interest & Disallowance Calculator automates: it applies the correct historical rate to each invoice based on its own due date, splitting the calculation across any rate change during the overdue period, rather than using a single current-rate estimate.

Source: DICGC, whose published Bank Rate tracks the RBI Bank Rate under Section 49 of the RBI Act. This table is refreshed automatically on a weekly basis (last updated 02 Aug 2026). While we have taken due care in maintaining this page, we make no warranty as to its accuracy and accept no financial liability for actions taken based on this data. This is not a substitute for professional advice; confirm the current rate directly at dicgc.org.in before relying on it for a filing, notice, or demand.