The Limitation Law passed in 1859 by the British was to:

The correct answer is Option (3) → Check the accumulation of interest over time

Option (1) Encourage moneylenders to give loans to ryots without legal bonds — Incorrect. The law dealt with the loan bonds themselves: a bond signed between a moneylender and a ryot would be valid for only three years.

Option (2) Give autonomy to moneylenders to decide the rate of interest — Incorrect. The law was a check on the moneylenders, not a freedom for them; it limited how long a bond could run.

Option (3) Check the accumulation of interest over time — Correct. By making loan bonds valid for only three years, the law was meant to check the accumulation of interest over time.

Option (4) Encourage accumulation of interest over time — Incorrect. This was the opposite of the law’s aim. Interest went on piling up only because the moneylenders turned the law around, forcing the ryot to sign a new bond every three years with the unpaid interest added to the principal.