Railways says rate of interest on advances to contractors revised

The Indian Railways has tweaked the interest rate it charges on advance payment to its contractors. An order from the Railway Board Monday fixed the interest rate at Reserve Bank’s bank rate plus 5% simple interest.

This will be applicable for tenders to be opened in the financial year 2022-23. This rate will be revised after three years. The interest rate was fixed at 10% for tenders opened in financial year 2021-22.