Mode of acceptance or repayment of certain loans or deposits.
294. (1) No person shall accept from, or repay to, any other person any loan or deposit otherwise than by an account payee cheque or bank draft, if the aggregate amount of such loan or deposit in a financial year exceeds fifty thousand rupees.
(2) The provisions of this section shall not apply to any loan or deposit taken or accepted from, or by —
(a) the Government;
(b) any banking company, post office savings bank or co-operative bank;
(c) any corporation established by a Central, State or Provincial Act;
(d) any Government company as defined in section 617 of the Companies Act, 1956;
(e) such other institution, association or body, or class of institutions, associations or bodies which the Central Government may, for reasons to be recorded in writing, notify;
(f) any person having only agricultural income.
(3) In this section,—
(a) "loan or deposit" means a loan or deposit of money;
(b) "loan or deposit" in relation to repayment, means—
(i) any loan or deposit of money repayable after a period or notice; and
(ii) in case of a person other than a company, includes a loan or deposit of any nature;
(c) "aggregate amount of loan or deposit", in the case of repayment, means any loan or deposit together with interest repaid during a financial year.
