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Q109 (CDS-I/2019) History & Culture › National Movement (1857–1947) › Peasant and tribal movements Answer Verified

The Limitation Law, which passed by the British in 1859, addressed which one of the following issues?

Result
Your answer: —  Â·  Correct: B
Explanation

In 1859, the British administration passed the Limitation Law to address the growing issue of peasant indebtedness and the manipulation of accounts by moneylenders [1]. The law specifically mandated that loan bonds signed between moneylenders and ryots would have legal validity for only three years [2]. The primary objective of this legislation was to prevent the indefinite accumulation of interest over time, which often trapped peasants in a cycle of debt [1]. However, the law proved counterproductive in practice; moneylenders circumvented the restriction by forcing ryots to sign new bonds every three years [2]. These new bonds incorporated the unpaid principal and accumulated interest as a new principal amount, leading to even higher interest calculations and further exploitation of the peasantry [2]. This cycle of debt was a significant factor contributing to agrarian unrest, such as the Deccan Riots [2].

Sources

  1. [1] THEMES IN INDIAN HISTORY PART III, History CLASS XII (NCERT 2025 ed.) > Chapter 9: COLONIALISM AND THE COUNTRYSIDE > Deeds of hire > p. 253
  2. [2] THEMES IN INDIAN HISTORY PART III, History CLASS XII (NCERT 2025 ed.) > Chapter 9: COLONIALISM AND THE COUNTRYSIDE > Deeds of hire > p. 254
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