21. Duty of Money Lender to keep accounts and furnish statements.
(1)Every Money-Lender shall keep and maintain proper accounts and a cash book, ledger, register of securities, register of debtors and such other books of accounts in such form and in such manner as may be prescribed. The cash book, the ledger and the register of securities shall contain an up-to-date and true accounts of all transactions, particulars of a pawn, pledge of security and where it is kept.(2)Every Money-Lender shall,-(a)deliver or cause to be delivered to the debtor on the same day on which a loan is advanced -(i)a statement in the prescribed form containing an up-to-date and true account of the transaction with the debtor, the amount (both in words and figures) and the date of the loan, the date of its maturity, the nature of security, if any, for the loan, the rate of interest charged and the names and full addresses of the debtor and the Money-Lender and such other particulars as may be prescribed; and if the loan advanced is in kind, the statement shall show, in place of the amount of the loan and the rate of interest, the correct value of the thing or commodity on the date on which it is advanced and the quantity of the thing or commodity in excess of the loan recoverable in lieu of interest;(ii)a pass book in the prescribed form containing an up to date and true account of all transactions relating to the loan;(b)submit to the Registrar such returns of the loans advanced by him, in such form and at such time, as may be prescribed;(c)keep and maintain with himself a copy of the statement referred to in sub-clause (i) of clause (a);(d)upon repayment of a loan in full, mark indelible entry in every paper signed by the debtor with words indicating payment or cancellation, and discharge every mortgage, restore every pledge, return every note and cancel or reassign every assignment given by the debtor as a security for the loan.(3)All the particulars required to be entered in the statement and the pass book referred to in clause (a) of sub-section (2) shall be entered therein in clear, distinct and legible terms in local language, or, if so required by debtor, then, in Hindi or English.(4)No Money-Lender shall receive any payment from a debtor on account of any loan without giving him a plain and complete receipt for such payment and without obtaining the signature or thumb impression of the debtor or his agent on the copy of such receipt to be kept with the Money-Lender where the payment is made in person.(5)No Money-Lender shall accept from a debtor any article as a pawn, pledge or security for a loan without giving him a plain receipt for such article, signed by the Money-Lender and showing therein the description and the estimated value of the article, the amount of loan advanced against it and such other particulars as may be prescribed.(6)A Money-Lender shall keep and maintain articles received as a pawn, pledge or security in safe custody and produce the same to the authority referred to in sub-section (1) of section 19 on demand.(7)Where any dispute arises as to the correctness of the market value of the commodity advanced as a loan, the matter shall be referred to the Registrar having jurisdiction in the area in which such loan is, or is to be, advanced and the decision of the Registrar shall be final.(8)A Money-Lender who has not maintained the record of any transaction relating to a loan advanced by him in the books of accounts as required under this Act shall be deemed to have advanced such loan in contravention of the provisions of this Act.(9)A Money-Lender shall keep and maintain relevant books of accounts as referred to in this section for five years except in the cases where the Registrar or Court requires or has required such books of accounts or statements or pass books for any longer period, as the case may be.
