State Act

THE UTTAR PRADESH REGULATION OF MONEY-LENDING ACT, 1976

11- (1) Every registered money-lender raising money by deposits from the public, shall maintain by way of liquid assets an amount which shall not, at the close of the business on any day, be less than twenty-five percent of his outstanding liabilities in respect of such deposits. (2) No money-lender, referred to in sub-section (1), shall, at any time have invested in an unsecured loan which shall, at the close of the business on any day, be more than fifty percent of the deposits held by him or double the amount of liquid assets maintained by him, whichever is greater. Explanation – For the purposes of this section, the expression ‘liquid assets’, in relation to a money-lender, means – (a) balance of cash with the money-lender ; or (b) any amount held by him in a current or any other deposit account with a scheduled bank ; or (c) investment by him in unencumbered securities (not including mortgage of immovable property) in which trustee may, under any law for the time being in force, invest trust money.