Stay updated with breaking news from Fraud Accounts. Get real-time updates on events, politics, business, and more. Visit us for reliable news and exclusive interviews.
Last year, the highest court had ruled that a borrower must be given a hearing before labelling the account as 'fraud'. Now, CBI, which is probing many of these cases, insist that the SC verdict stands for all fraud accounts - new as well as old cases - but banks assert that the SC ruling cannot be given 'retrospective' effect to cover borrowers listed as frauds before the ruling.
According to officials aware of the deliberations, the Indian Banks Association, or IBA, and National E-governance Services Ltd. (NeSL) are working to further improve the reporting system, which will now capture data on 'declaration of fraud' and 'declaration of wilful default,' a move that is expected to fast-track the process of establishing defaults and verify claims expeditiously.
While some reports had initially said that the Bombay HC had stayed the effect of the RBI circular, the bench of Justices G.S. Patel and Neela Gokhale, the court's order said this was not the case.
India Business News: The Bombay high court on Monday stayed an action by banks under a master direction issued by the Reserve Bank of India (RBI) on ‘frauds classification
Addressing a press conference at the AICC headquarters here, AICC secretary Vineet Punia and Congress leader Amitabh Dubey said the financial burden on this country from fraud and wilful defaults has been severe.