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Booking a fraudster became a bit more onerous for bankers

The Supreme Court wants banks to hear borrowers accused of fraud and give a reasoned order when labelling them as fraud

March 28, 2023 / 11:01 AM IST
Booking a fraudster became a bit more onerous for bankers

Lenders need not wait for a mere official tag of fraud to stop lending. The SC has not denied banks the right to make business decisions.

Highlights: Supreme Court has ordered that the principles of natural justice be imbibed into the RBI’s 2016 circular on fraud Bankers need to allow borrowers accused of fraud to defend themselves before being tagged as one In 2021-22, banks reported Rs 60,414 crore worth of loans as fraud, of which nearly 18 percent were detected as much as a decade ago, a sign that banks have a poor record of recovering money from fraudulent accounts The SC order will make an already onerous...

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