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    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
    E Section 22A 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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