Interest.

The interest payable for a particular type of debt shall be calculated at the rate which has been prescribed by the Reserve Bank of India and where such rate has not been prescribed, the rate of interest shall be ten percent. Credit shall be given for all sums paid or credited first towards outstanding interest and the balance, if any, shall be credited to wards repayment of the principal. The amount of principal and the interest outstanding will be considered as the net outstanding debt for the purpose of scaling down. Explanation.- The interest payable shall be simple and not compound interest