Commercial banks have sought clarification from the Reserve Bank of India (RBI) on the issue of charging interest at monthly rates with effect from April 1, 2002, as the agriculture sector has a longer cycle of six months as compared with other trade and industrial sectors. Earlier, the interest was charged at quarterly rests.
Further, the banks want elaborate guidelines on the issue from the RBI as it is not clear whether the interest charged is to be simple or compounded.
