What was the name of the general norm that broke down during the colonial era, stating that the interest charged by the moneylender from a ryot could not be more than the principal?

Fair interest

The correct answer is Option 4 - Fair interest

Moneylending was certainly widespread before colonial rule and moneylenders were often powerful figures. A variety of customary norms regulated the relationship between the moneylender and the ryot. One general norm was that the interest charged could not be more than the principal. This was meant to limit the moneylender’s exactions and defined what could be counted as “fair interest”. Under colonial rule this norm broke down. In one of the many cases investigated by the Deccan Riots Commission, the moneylender had charged over Rs 2,000 as interest on a loan of Rs 100. In petition after petition, ryots complained of the injustice of such exactions and the violation of custom.