Bombay High Court asks banks to pass reasoned orders while invoking RBI Circular on Wilful Defaulters

The Court said that the banks must disclose to the borrower the basis for invoking the RBI circular and also share information about members of committees that pass orders declaring borrowers as wilful defaulters.
RBI, Bombay High Court
RBI, Bombay High Court

Banks seeking to invoke the Reserve Bank of India's (RBI) Master Circular on wilful defaulters against borrowers must share evidence and pass reasoned orders explaining why it was resorting to such a course, the Bombay High Court recently held [Milind Patel v. Union Bank of India & Ors.].

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