Question

What is red ink interest? Why do we call it as red ink interest

Answer 1

Answer:

This interest is called Red-Ink Interest. In an Current Account, interest is calculated on the amount of a bill from the date of transaction to the closing date of the period concerned. In case the due date of the bill falls after the closing date of the account, then no interest is allowed for that period.

Answer 2

Answer:

This interest is called Red-Ink Interest. In an Current Account, interest is calculated on the amount of a bill from the date of transaction to the closing date of the period concerned. In case the due date of the bill falls after the closing date of the account, then no interest is allowed for that period.