Rajasthan Money-Lenders Act, 1963
No: 1 Dated: Mar, 09 1964
The Rajasthan Money-Lenders Act, 1963
(Rajasthan Act No. 1 of 1964)
An Act to make better provision for the regulation and control of transactions of money-lending in the State of Rajasthan
BE it enacted by the Rajasthan State Legislature in the Fourteenth Year of the Republic of India as follows;-
1. Short title, extent and commencement. - (1) This Act may be called the Rajasthan Money-lenders Act, 1963.
(2) It extends to the whole of the State of Rajasthan.
(3) It shall come into force on such date[ as the State Government may, by notification in the Official Gazette, appoint in this behalf.]
2. Definitions. - In this Act, unless there is anything repugnant in the subject or context,-
(1) "bank" means a banking company as defined in the [Banking Regulation Act, 1949] (Central Act X of 1949), and includes the State Bank of India and any other banking institution notified by the Central Government under section 51 of the said Act;
(2) "business of money-lending" means the business of advancing loans whether or not in connection with or in addition to any other business;
(3) "capital" means a sum of money which a money-lender invests in the business of money-lending;
(4) "company" means a company as defined in section 3 of the Companies Act, 1956 (Central Act 1 of 1956);
(5) "co-operative society" means a society registered or deemed to have been registered under the Rajasthan Co-operative Societies Act, 1953 (Rajasthan Act IV of 1953) or under the Co- operative Societies Act, 1912 (Central Act II of 1912) or under any Act of any other State Legislature relating to co-operative societies;
(6) "interest" includes any sum, by whatsoever name called, in excess of the principal paid or payable to a money-lender in consideration of or otherwise in respect of a loan, but does not include any sum lawfully charged by a money-lender for or on account of costs charges or expenses in accordance with the provisions of this Act or any other law for the time being in force;
(7) "licence" means a licence granted under this Act;
(8) licence fee" means the fee payable in respect of a licence;
(9) "loan" means an advance at interest, whether of money or in kind, but does not include-
(a) a deposit of money or other property in a Government Post 1 Office Savings Bank or in any other bank or in a company | or with a co-operative society;
(b) a loan to or by, or a deposit with, any society or association registered or deemed to be registered under the Rajasthan Societies Registration Act, 1958 or any other enactment, relating to a public, religious or charitable object;
(c) a loan advanced by Government or by any local authority authorised by Government;
(d) a loan advanced to a Government servant from a fund established for the welfare and assistance of Government servants and which is sanctioned by the State Government:
(e) a loan advanced by a co-operative society;
(f) an advance made to a subscriber to, or a depositor in, a Provident Fund from the amount standing to his credit in the fund in accordance with the rules of the fund;
(g) a loan to or by an insurance company as defined in the Insurance Act, 1938 (Central Act IV of 1938);
(h) a loan to, or by a bank;
(i) an advance made on the basis of a negotiable instrument as defined in the Negotiable Instruments Act, 1881 (Central Act XXVI of 1881) other than a promissory note;
(j) except for the purposes of section 27 and 29,-
(i) a loan to a trader, or
(ii) a loan to a money-lender who holds a valid licence;
(10) "money-lender" means-
(i) an individual or
(ii) an undivided Hindu family, or
[(iii) a company (not being a banking company as defined in section 5 of the Banking Regulation Act, 1949), body or institution other than such of them as may, by notification in the Official Gazette, be exempted from the provisions of this Act by the State Government on being satisfied that it is necessary or expedient so to do in public interest, or]
(iv) an un-incorporated body of individuals,
who or which,-
(a) carries on the business of money-lending in the State; or
[(b) supplies, as a trader or dealer, goods other than agricultural goods on credit on condition of payment of interest by the buyer at a rate higher than that prescribed in section 29 in case the payment of sale price is not made within the stipulated period; or]
(c) has his or its principal place of such business in the State;
(11) "principal" means in relation to a loan, the amount actually advanced to the debtor;
(12) "Provident Fund" means a Provident Fund as defined in the Provident Funds Act, 1925 (Central Act X of 1925) and includes a Government Provident Fund and a Railway Provident Fund as defined in the said Act;
(13) recognised language" means-
(i) Hindi written in the Devnagari script, or
(ii) English, if the debtor so desire in writing, or
(iii) where both the parties speak the same language, that language;
(14) "register" means a register of money-lenders maintained under section 4;
(15) "suit to which this Act applies" means any suit or proceeding-
(a) for the recovery of a loan made after the date on which the Act comes into force; or
(b) for the enforcement of any security taken, or any agreement made, after the date on which this Act comes into force in respect of any loan made either before or after the said date; or
(c) for the redemption of any security given after the date on which this Act comes Into force in respect of any loan made either before or after the said date;
(16) "trader" means a person who in the regular course of business buys and sells goods or other property, whether movable or immovable, and includes-
(a) a whole-sale or retail merchant,
(b) a commission agent.
(c) a broker,
(d) a manufacturer,
(e) a contractor, and
(f) a factory owner,
but does not include ah artisan or a person who sells his agricultural produce or cattle or buys agricultural produce or cattle for his use.
Explanation. - For the purposes of clause (16) an "artisan" means a person who does not employ more than ten workers in a manufacturing process on any one day of the twelve months immediately preceding.