DoT amends PMRTS, ILD and NLD Licence Agreements to Change Rate of Interest for Payment Defaults

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Mar 31, 2019

DoT amends PMRTS, ILD and NLD Licence Agreements to Change Rate of Interest for Payment Defaults

The Department of Telecommunications (‘DoT’) by way of its notifications dated February 25, 2019 and February 28, 2019 amended the license agreement pertaining to: (i) Public Mobile Radio Trunking Services (PMRTS) licenses (other than unified licenses); (ii) International Long Distance (ILD) licenses (other than unified licenses); and (iii) National Long Distance (NLD) licenses (other than unified licenses) for modification in the rate of interest chargeable on delayed payments of license fee/spectrum usage charges or any other dues by the licensee, from 2% above the prime lending rate (PLR) of the State Bank of India (‘SBI’) to 4% above the marginal cost of lending rate (MCLR) of the SBI (as on the beginning of the financial year, compounded monthly). The amendments come into effect retrospectively from April 1, 2016.

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