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I see a deduction "Delayed payment charges" on my ledger. Why is this?

You could be charged 'delayed payment charges' in two scenarios:

  1. A negative balance in your account- If you have utilized funds higher than the amount available in your account, your account will result in a debit balance. There could also be scenarios where charges are levied in your account and you dont have the required balance which could result in a debit balance. In such cases, 0.05% per day or 18% p.a will be charged as interest on the debit balance.
  2. Over-utilisation of non-cash equivalent collateral margin -  Exchanges stipulate that for overnight F&O positions, 50% of the margin needs to compulsorily come in cash or cash equivalent collateral, and the remaining 50% can be in terms of non-cash collateral margin . If you don’t have sufficient cash margin and the shortfall is funded by non-cash collateral, there will be a delayed payment charge of 0.035% per day or 12.775% p.a on the shortfall in the cash margin requirement. Read more about pledging here .

Delayed payment charges could be avoided by ensuring that your available cash balance on Kite dashboard and funds statement is not negative. Funds can be added to the trading account if the available cash balance is negative to avoid delayed payment charges.

You can view your Interest statement here .