New Enroll in RBI Grade B New Batch - Starts on May 21

    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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