The Tug-of-War: Examining the Clash between Borrower’s Fundamental Rights and RBI’s Master Circular on Fraud Accounts
The constitutional validity of the Master Directions on Frauds – Classification and Reporting by commercial banks and select Financial Institutions has been challenged on the grounds that these directions do not provide any opportunity to be heard by the authorities. Once a bank declares a company’s accounts as Red Flagged Accounts, the accounts are frozen, …