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Q:

The Limitation Law, which passed by the British in 1859, addressed which one of the following issues?

A) Loan bonds would not have any legal validity B) Loan bonds signed between money lender and Ryots would have validity only for three years
C) Loan bonds could not be executed by money lenders D) Loan bonds would have validity for ten years

Answer:   B) Loan bonds signed between money lender and Ryots would have validity only for three years



Explanation:

The ryots came to see the moneylender as devious and deceitful. They complained of moneylenders manipulating laws and forging accounts. In 1859 the British passed a Limitation Law that stated that the loan bonds signed between moneylenders and ryots would have validity for only three years. This law was meant to check the accumulation of interest over time. The moneylender, however, turned the law around, forcing the ryot to sign a new bond every three years.

Subject: Indian History
Exam Prep: Bank Exams
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