Moneylenders are rendering yeomen service to the society by providing credit to the people at the time of their need, without making them to undergo the ordeal of obtaining credit from any bank or financial institution. In fact, substantial portion of the rural credit is provided by Private Bankers.


















AKPBA brings to the attention of the Central and State Governments, the issues of common interest concerning money lending business. Important legal matters are also taken up and represented before the concerned authorities. Association also takes up appropriate legal proceedings to protect the interests of the money lenders.

The Association always takes care to bring to the notice of its members, the rules, regulations and amendments pertaining to money lenders and suggests actions by issue of regular circulars and bulletins. It also makes arrangements for the supply of forms and registers as per rules.

The Association always carefully scrutinises the provisions of enactments and its spares, to make efforts to protect the members if they are adversely affected. It helps its members by providing legal assistance and advises and instructions for setting up and running a unit efficiently.

Educational Scholarships Awarded By AKPBA

1. AKPBA has instituted an Education Scholarship, cash awards of Rs. 2000/- each to 20 deserving B.Com students selected from different regular colleges in the state.

2. Another scholarship as above is given in memory of a founder and former president, late Sri. A. Mathews Venkadath.

3. Sri. C.K. Kurien (Sr.), Chackalayil, Vadavathoor has funded a scholarship of Rs. 750/- in memory of his son the late Sri. C. K. Kurien (Jr.), who was a student of M.T.S. Higher Secondary School, Kottayam, to one student, who secures the highest mark in SSLC examination, from that school, every year.

AKPBA Bulletin - Financier

AKPBA BULLETIN is the official publication of the association, published quarterly since 1993, which has circulation among the members. The aim of the publication is mainly to issue prompt and proper instructions to the members regarding rules and regulations affecting moneylenders and to publish case laws for the information of the members and to promote moneylending business. In addition AKPBA publish directory of its members, periodically.

Achievements of the Association

Money Lenders Act, 1958 and Amendments.
Due to the representation made by AKPBA, substantial changes were made in the Kerala Money Lenders Bill to safeguard the interests of the money lenders to a great extent. The amendments enacted in the year 1986 in the Kerala Money Lenders Act 1958 brought out certain changes in the interest rates charged by the money lenders were by the efforts taken by AKPBA.

The changes made in 1983 imposed compulsory security deposit based on the turn over of the moneylenders, to protect the interests of the depositors and borrowers. The Association took up certain infirmities in the Act before the High Court of Kerala and the definition of turn over was interpreted as the 'aggregate of advances' for the purpose of security deposit allowing the writ Appeal. The Govt. of Kerala went in Appeal before the Supreme Court and the Supreme Court also upheld the High Court decision. (reported in 1992 (1) KLT, 583)

The licence fee and the security deposit were again increased. Against this, the Association took up the matter before the High Court and the licence fee was fixed at Rs. 3000/- by the High Court. The Government went in appeal before the Supreme Court and the matter is pending. Mean while the Reserve Bank of India has introduced a large number of restrictions on acceptance of deposits by private moneylenders.

Private moneylenders are prohibited from using the word 'Bank' along with their names. The NKPBA fought against this and the Kerala High Court has allowed the private moneylenders to use the word 'Banker' along with their names. (O.P. No: 3240 / 78 B, dt. 20 March 1981)

Even now private moneylenders are not allowed to use cheques for the withdrawal of funds from their institutions. Again private moneylenders are prohibited from accepting or inviting deposits from the public except from the list of relatives shown in Section 45 S of the Reserve Bank of India Act.

All Kerala Private Bankers' Association has become a necessity to protect the interest of the private bankers all over Kerala.

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