Question

According to the MSMED Act if a buyer fails to make payment to the supplier as required, the buyer is liable to pay compound interest with monthly rests to the supplier. What is the rate of this interest?

A Twice the bank rate notified by the Reserve Bank
B Three times the bank rate notified by the Reserve Bank
C The standard bank rate notified by the Reserve Bank
D Four times the bank rate notified by the Reserve Bank
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