Restriction on interest rate increase

Except with the prior permission of the Registrar, no Central Bank shall increase its rate of interest on lending to agricultural co-operative credit societies, nor shall it charge interest from such societies at a rate exceeding three per cent over its average borrowing rate. Explanation- “Average borrowing rate” means, the rate of interest arrived at after taking into consideration the total borrowing (i.e., all loans and deposits other than deposits held in current account) and the total interest accrued on such borrowings in the preceding co-operative year.