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Question:
In the light of Negotiable Instruments Act, 1881, at what rate interest will be charged if the rate of interest is not mentioned on the negotiable instruments?
In the light of Negotiable Instruments Act, 1881, at what rate interest will be charged if the rate of interest is not mentioned on the negotiable instruments?
Updated On: Nov 7, 2024
- 6% per annum
- 10% per annum
- 18% per annum
- 20% per annum
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The Correct Option is C
Solution and Explanation
According to the Negotiable Instruments Act, 1881, if a negotiable instrument does not specify an interest rate, the default rate is set at 18% per annum.
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