Question

Which section of the Banking Regulation Act delas with the provisions relating to rates of interest charged by banking companies not to be subject to scrutiny by courts?

A Section 12 Correct Answer Incorrect Answer
B Section 20 Correct Answer Incorrect Answer
C Section 21 Correct Answer Incorrect Answer
D Section 21A Correct Answer Incorrect Answer

Solution

Section 21A. Rates of interest charged by banking companies not to be subject to scrutiny by courts: Notwithstanding anything contained in 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

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