https://www.taxtmi.com/caselaws?id=197574 RBI interest directives bind banks on both the rate and structure of loan interest, and they distinguish agricultural from non-agricultural advances. For agricultural loans, interest could not be compounded with periodic rests except on overdue amounts, so compound interest at quarterly or half-yearly rests was impermissible. For non-agricultural advances, periodic rests were allowed within the RBI-prescribed framework, and a rate fixed in public interest could amount to a special circumstance under usurious loans legislation. Section 21A of the Banking Regulation Act barred reopening a banking transaction merely for alleged excessiveness, but it did not protect interest charged in breach of binding RBI directives. en-us Mon, 20 Jun 1994 00:00:00 +0530 Wed, 10 Jan 2018 11:49:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=197574 RBI interest directives bind banks on both the rate and structure of loan interest, and they distinguish agricultural from non-agricultural advances. For agricultural loans, interest could not be compounded with periodic rests except on overdue amounts, so compound interest at quarterly or half-yearly rests was impermissible. For non-agricultural advances, periodic rests were allowed within the RBI-prescribed framework, and a rate fixed in public interest could amount to a special circumstance under usurious loans legislation. Section 21A of the Banking Regulation Act barred reopening a banking transaction merely for alleged excessiveness, but it did not protect interest charged in breach of binding RBI directives. Case-Laws Companies Law Mon, 20 Jun 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=197574