Under what circumstances, the "Payment of Interest" becomes chargeable on goods supplied or services provided by the micro and small enterprises to the buyer, and as to what rate of interest be charged ? Explain briefly.

According to Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006 in case the buyer fails to make payment of the amount to the supplier, the buyer, notwithstanding anything contained in any agreement between the buyer and the supplier or in any law for the time being in force should pay compound interest with monthly rests to the supplier on that amount from the appointed day or, as the case may be, from the date immediately following the date agreed upon, at three times of the bank rate notified by the Reserve Bank.