Borrowers have right to be heard before their accounts are classified as fraud
Banking Law
Borrowers have right to be heard before their accounts are classified as fraud - the decision to classify the account as fraudulent must be made by a reasoned order - Since the RBI's Master Directions do not expressly provide for an opportunity of hearing to the borrower, audi alteram partem must be read into the provisions to save them from the vice of arbitrariness. State Bank of India v. Rajesh Agarwal, 2023 LiveLaw (SC) 243