Section 21A of the Banking Regulation Act, 1949 provides that, notwithstanding the Usurious Loans Act, 1918 or any other law relating to indebtedness in force in any State, a transaction between a banking company and its debtor shall not be re-opened by any court on which of the following grounds?

Section 21A, inserted by the Banking Laws (Amendment) Act, 1983 (Act 1 of 1984) with effect from 15 February 1984, provides that notwithstanding the Usurious Loans Act, 1918 or any other law relating to indebtedness in force in any State, a transaction between a banking company and its debtor shall not be re-opened by any court on the ground that the rate of interest charged by the banking company in respect of such transaction is excessive. This provision gives banks immunity from judicial challenge to their lending rates on grounds of usury, recognising that banks operate under Reserve Bank regulatory oversight on interest rates under Section 21. The protection covers all transactions regardless of the interest rate quantum charged.