Report No. 63
The Hindu law rule of "Damdupat" is well-known, and it may be stated that this rule is of very ancient origin, having been mentioned by most writers of Smritis.1-2 It may, for example, be of interest to note that Vasistha3 lays down the rule that in principle the lender of a sum of money cannot demand a total of interest higher than the amount of principal lent; "For gold, double, for cereals, triple (the amount of the loan)".
1. Gautama, XII, 31; Manu, VIII, 51; Yajnavalkya, II 39; Vishnu, VI, II, 17.
2. See Ganga Nath Jha Hindu Law in its Sources, Vol. 1, Ch. 5, for the Texts.
3. Vasistha, II, 441.