Section 46(a) in The Assam State Co-operative Agriculture and Rural Development Bank Limited
(a)The rate or interest on loans shall be determined by the Board from time to time. It shall be competent to the Bank to charge a higher rate of interest to be called as penal interest not exceeding one percent over the agreed rate, on arrears of debts due to it as well as to recall the whole or any part of the loan outstanding in each case on default in repayment any instalment or part thereof on debt fixed for payment is made.
