‘Affects right to reputation’: SC asks banks give hearing before labelling borrowers as fraudulent

The Supreme Court on Monday ruled that the banks should give a personal hearing to borrowers before classifying their account as fraudulent, in accordance with the RBI’s Master Circular of July 1, 2016, noting that the action of classifying an account as fraud not only affects the business and goodwill of the borrower, but also the right to reputation.


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