NEW DELHI: The RBI and SBI informed the Supreme Court that personal hearings for account holders before declaring an account as fraudulent are impractical due to the high volume of banking frauds, which totaled 60,000 cases worth Rs 48,244 crore in recent years. SBI’s solicitor general argued that personal hearings could undermine the fraud declaration process, while RBI noted that mandating such hearings would hinder banking operations. The Supreme Court emphasized the need for guidelines regarding when personal hearings should be granted. In a prior ruling, the Court established that borrowers must be notified and allowed to respond before their accounts are categorized as fraudulent.
Want More Context? 🔎
Please login to join discussion
