Bombay HC: Banks Ordered to Provide Reasoned Orders Regarding RBI ‘Wilful Defaulter Circular’

The Bombay High Court’s recent ruling sets strict guidelines for banks labeling borrowers as wilful defaulters under RBI’s directives. The judgment emphasizes transparency and fair process, following the IL&FS Financial Services Ltd case. It mandates banks to provide all necessary documents to accused parties, ensuring principles of natural justice. This landmark decision highlights the importance of fairness and transparency in the banking sector.