Cash credit account penal interest.

If stock statements are submitted with delay, banks charge penal interest from the borrower. However in your case, you have mentioned that these statements are submitted on 1st of the next month every time. Normally bank allows 1 week to 10 days time to submit stock statements after a month is over. If you submit it on 1st, I don't know how early they expect you to submit; or is it that you submit them for the month before the one which is completed?

You have to speak openly with the bank and get this clarified. If they are charging it unreasonably from you, you have ample choices to shift to another bank if you have a good track record of CC account operation.

Please check the sanction letter. At times banks do charge penal interest for non-fulfillment of any term/condition of the agreement. In some of the cases in SBI, bank software do charge penal interest for non-utilisation of the limit upto certain extent.If still the matter is not clear, you may ask in writing from the sanctioning authority. If bank agree you can make written request for reversal of penal interest.

Please check the sanction letter. At times banks do charge penal interest for non-fulfillment of any term/condition of the agreement. In some of the cases in SBI, bank software do charge penal interest for non-utilisation of the limit upto certain extent.If still the matter is not clear, you may ask in writing from the sanctioning authority. If bank agree you can make written request for reversal of penal interest.