Tilt up of RBI building. (Photo: Vijay Sartape/NDTV Profit)
"Audi Alteram Partem" or "let the other party be heard" took centre stage in a Supreme Court order in March 2023. In that order, the apex court told the Reserve Bank of India that its fraud risk management guidelines from 2016 ran afoul of the "principles of natural justice". Why? Because the guidelines did not specify whether banks should hear the borrower before they classify an account as fraud. Under the 2016 rules, a bank or a g...