Which law, passed by British stated that, the loan bonds signed between moneylenders and ryots would have validity for only three years?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Limitation Law
In the Bombay Deccan the ryots complained that moneylenders manipulated laws and forged accounts. In 1859 the British passed a Limitation Law, which stated that the loan bonds signed between moneylenders and ryots would be valid for only three years. The law was meant to check the piling up of interest over time, but the moneylender turned the law around by forcing the ryot to sign a new bond every three years.
Note: A same/similar question was asked in CUET (UG) in the papers below.
| 2026 | 2025 | 2024 | 2023 | 2022 |
| 20-05 S1 24-05 S1* | – | – | – | – |
* A similar question.
NCERT (2025-26): “3.6 The experience of injustice … 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.…” |