---
title: "What does \"Delayed payment charges\" entry on the funds statement mean?"
description: "Delayed payment charges appear on your funds statement when your Arrow account is negative or when you exceed margin requirements. iRage levies these…"
category: console
subcategory: funds-statement
slug: what-does-delayed-payment-charges-entry-on-the-funds-statement-mean
canonical: https://support.arrow.trade/console/funds-statement/what-does-delayed-payment-charges-entry-on-the-funds-statement-mean/
---

# What does "Delayed payment charges" entry on the funds statement mean?

> Delayed payment charges appear on your funds statement when your Arrow account is negative or when you exceed margin requirements. iRage levies these…

## Short answer

Delayed payment charges appear on your funds statement when your Arrow account is negative or when you exceed margin requirements. iRage levies these charges for three main reasons.

## Negative balance in your Arrow account

You will see delayed payment charges when your account shows a negative balance:

If your utilised funds exceed your available balance, your account results in a debit balance

This can also happen when iRage debits charges without you having sufficient funds

iRage charges interest at 0.05% per day (₹50 per lakh) or 18% per annum on your debit balance

GST does not apply to this interest charge

## Over-utilisation of non-cash equivalent collateral margin

For F&O positions, you must maintain 50% of the margin in cash or cash-equivalent collateral, while you can hold the remaining 50% in non-cash collateral:

If you do not maintain sufficient cash margins, iRage funds your shortfall

iRage will levy interest of 0.035% per day (₹35 per lakh) or 12.775% per annum on your shortfall

An 18% GST is levied on this charge

## Interest on collateral margin from Additional securities

Beyond the approved securities, iRage allows you to pledge additional Group A stocks for collateral margin. While this expands your pledging flexibility, any margin utilised from these securities attracts an interest charge of 0.05% per day.

You can identify these securities in the Console pledge window, where they are marked with an asterisk (*).

## Margin shortfall

SEBI requires brokers to collect margins from you before executing orders to cover potential losses. A margin shortfall occurs when your available margin (funds or collateral) is less than the required margin set by SEBI.

Factors affecting your required margins include:

Liquidity

Volatility

Time to expiry for futures and options contracts

Other positions in your portfolio

iRage charges interest at 0.05% per day (₹50 per lakh) or 18% per annum on your debit balance

## How charges appear on your funds statement

To comply with GST regulations, iRage splits the charges as follows:

Debit balance interest: Appears as 'Delayed payment charges' and GST does not apply.

Excess collateral utilisation and margin shortfall interest: Appear as a separate entry on your funds statement as Charge for excess collateral utilisation and margin shortfall' and attracts 18% GST.

## When charges do not apply

iRage does not levy delayed payment charges when your margins increase during the day due to factors such as volatility or market events. However, if your margins increase because of a hedge break, which involves the expiry or exiting of one leg of your hedged position, delayed payment charges will apply if you do not maintain sufficient funds.

## How to avoid these charges

To avoid delayed payment charges, ensure you maintain sufficient funds in your Arrow account. You can also check the interest levied on your debit balance on the interest statement on Console.

## Related

- Browse more in [funds statement](/console/funds-statement/)
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Source: https://support.arrow.trade/console/funds-statement/what-does-delayed-payment-charges-entry-on-the-funds-statement-mean/
Publisher: Arrow / iRage Broking Services LLP