21. Prohibition against holding out as a licensed moneylender

A person shall not hold out as a licensed moneylender and shall not take or use or by inference adopt the name, title or description of a “licensed moneylender”, or take or use or have attached to or exhibited at any place any name, title or description implying or tending to create the belief that such person is a licensed moneylender, without obtaining a licence under subsection (1) of section 20 of this

The Authority may determine whether a person is engaged in the moneylending business having regard to the frequency of transactions by such persons and the characteristics thereof.

A person who contravenes the provisions of subsection (1) commits an offence and shall, on conviction after summary trial by a Magistrate be liable to a fine not exceeding five million rupees or to imprisonment for either description not exceeding five years or to both such fine and imprisonment.