Business Standard

After Supreme Court's fraud tag verdict, responsibility now on banks

Borrowers - small and large - can now seek a relook at their cases

Supreme Court
Premium

The apex court was of the view that this leads to serious civil consequences for the borrower, and is akin to blacklisting them for both being untrustworthy and unworthy of credit

Raghu Mohan New Delhi
The Supreme Court’s (SC’s) verdict on Monday that a borrower must be heard before an account is classified as fraud has come as a big relief for India Inc. The decision places responsibility on banks before they proceed on this line. 

Borrowers — small and large — can now seek a relook at their cases. Senior bankers pointed out that “natural justice” to an aggrieved borrower was the casualty to a large extent because of the short interval available to them to offer relief under the Reserve Bank of India’s Master Directions (Frauds-Classification and Reporting by commercial banks and select Financial

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Mar 27 2023 | 10:40 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com