Money lenders to maintain accounts and to furnish statements thereof to debtors.

(1) A money-lender shall,-

(a) maintain a regular account of loan for each debtor separately;

(b) deliver to the debtor every year the prescribed statement of account signed by him or his agent specifying the amount of loan that may be outstanding against such debt or on the prescribed date. Such statement of account shall contain all transactions of loan entered into during that year. The said statement shall be in the language of the village office of the district for which the money-lender has obtained a licence.

(2) The account mentioned in clause (a) of sub-section (1) shall be so maintained that items of principal and interest may be separately and clearly ascertained and the balance of principal and interest shall be shown separately. The money-lender shall not be authorised to include the interest or any portion of interest in the principal. The opening balance of principal and interest shall be separately shown:

Provided that if after a loan was originally advanced by a money-lender, a widow or minor becomes entitled to such loan, such widow or minor shall not be required to maintain the account and furnish the statement of account under sub-section (1) for a period of one year from the date on which such right accrued.

(3) The licensing authority or any person authorised by him may inspect the books of account of a money-lender for the purpose of satisfying himself that the provisions of this section are being complied with.