Ombudsman Cannot Treat Complaint As Settled Without Customer's Acceptance Of His Advisory: Kerala High Court

A bank's payment of an amount directed by the Banking Ombudsman does not, by itself, settle a customer's complaint. The Kerala High Court has ruled that a complaint can be treated as resolved under the Reserve Bank–Integrated Ombudsman Scheme, 2021, only after the complainant accepts the advisory.A single-judge Bench of Justice M.A. Abdul Hakhim was hearing a petition filed by Mohamed Shafi, a Standard Chartered Bank customer, challenging the Banking Ombudsman's order treating his complaint as...

Mere Loan Non-Disclosure Without Intent To Deceive Cannot Justify Fraud Tag: Bombay High Court

The Bombay High Court on 4 November held that mere non-disclosure of an existing loan, without establishing an intention to deceive the bank, cannot justify classifying a borrower's account as fraudulent under the Reserve Bank of India's (RBI) Master Directions on Fraud Risk Management, 2024. A Bench comprising Justices Sarang V Kotwal and Ranjitsinha Raja Bhonsale allowed a petition filed by Prasanth Narayanan, a Director of the suspended Board of Carnival Technopark Private Limited, and...

RBI Forms Financial Markets Committee; SBI, Axis Bank, Citibank And Morgan Stanley Among Members

The Reserve Bank of India has constituted a Technical Consultative Committee for Financial Markets to facilitate structured engagement with market participants and stakeholders on policy and operational matters concerning financial markets.The move follows the announcement made in the RBI's Statement on Developmental and Regulatory Policies dated October 7, 2026. The Committee will examine issues relating to money, government securities, foreign exchange markets, related derivatives markets and...

Kerala High Court Sets Aside Order Directing Police To Investigate Man's Bank Account Over Large Credits

The Kerala High Court has set aside a Single Judge's direction to investigate a man's bank account after finding that no police officer had alleged his involvement in any crime. A Division Bench comprising Justice Devan Ramachandran and Justice Basant Balaji observed that the Single Judge could not have ordered an investigation solely on the basis of entries in the man's bank statement. “None of the Police Officers on record imputes that the appellant is involved in any Crime; and, at best -...

Bank Cannot Escape Liability For Unauthorised Loans Against Fixed Deposits: Madras High Court

The Madras High Court, on 28 October, held that once a depositor establishes that a bank received money for fixed deposits and failed to repay the maturity proceeds, the bank must prove that loans secured against those deposits were obtained with the depositor's authorisation. Justices P. Velmurugan and G.K. Muthukumaar dismissed an appeal filed by Indian Overseas Bank against a decree directing it to repay Sree Gokulam Chit and Finance Company the amounts covered by two fixed deposits. The...

Karnataka High Court Refuses To Quash Case Over Dishonoured ₹52 Lakh Loan Payment Woman Links To Digital Arrest

The Karnataka High Court has refused to quash criminal proceedings initiated by ICICI Bank against a woman over the dishonour of a payment instruction for ₹52.41 lakh towards a personal loan, which she claimed was obtained during a digital arrest scam.Justice M Nagaprasanna was hearing a petition filed by Srividya Bhaskar, who also sought to restrain the bank from taking coercive steps to recover the loan and to restore her CIBIL score.Bhaskar claimed that she was subjected to a digital arrest...

Can Banks Be Charged For Police Aid To Take Possession Of Secured Assets? Rajasthan High Court Explains

The Rajasthan High Court has held that police assistance required to help banks take possession of secured assets under the SARFAESI Act must be provided without charging the banks. A Division Bench of Justices Vinit Kumar Mathur and Chandra Shekhar Sharma held that police assistance required to implement orders under Section 14 of the SARFAESI Act is a statutory obligation of the State. It cannot be treated as a commercial service merely because the proceedings arise from a loan transaction...

Legal Advice That Goes Wrong No Ground For Prosecution: Patna High Court Quashes Case Against UCO Bank Lawyer

The Patna High Court has quashed criminal proceedings against a UCO Bank panel advocate accused in an alleged loan fraud case, ruling that an advocate cannot be prosecuted merely for rendering a legal opinion in the absence of material linking him to the alleged offences.A coroner of Justice Rana Vikram Singh allowed the advocate's petition under Section 482 of the Code of Criminal Procedure, challenging the order by which the Additional Chief Judicial Magistrate had taken cognizance of offences...

Kerala High Court Allows LPG Distributor To Operate Account Despite ₹1.16 Cr. Lien, Cites Alleged Fraud

The Kerala High Court on 15 October directed Axis Bank to allow Radhika Menon, an LPG distributor, to operate her current account despite 21 requisitions involving a total lien amount of Rs. 1.16 crore, after she alleged that fraudsters had used her account to route disputed transactions. Justice M.A. Abdul Hakhim held that a bank could permit a customer to operate her account by disregarding lien requisitions where the disputed transactions appeared to have resulted from fraud against her. The...

Allahabad High Court Calls For Law Or RBI Guidelines To Allow Comatose Patients' Dependents Access To Bank Funds

The Allahabad High Court recently observed that legislation or Reserve Bank of India (RBI) guidelines are needed to establish a mechanism for releasing money lying in the savings bank accounts of comatose patients to their dependents. Such a mechanism would help families meet hospital expenses and manage household needs. A division bench of Justice Ajit Kumar and Justice Garima Prashad observed: “In the circumstances, therefore, some sort of legislation from the competent legislature or even...

Supreme Court Refuses To Direct IDBI Bank To Honour ₹8.7 Crore Bank Guarantee To CTUIL

The Supreme Court on Friday refused to interfere with the Delhi High Court's division bench order declining to direct IDBI Bank Limited to release ₹8.7 crore to the Central Transmission Utility of India Limited (CTUIL) under a bank guarantee.The Delhi High Court on July 1, 2026 dismissed an appeal filed by Central Transmission Utility of India Limited (CTUIL) challenging a Single Judge's order dated March 19, 2026, which declined to direct IDBI Bank Limited to release ₹8.7 crore under a bank...

Yes Bank's ₹8,415 Crore AT-1 Bond Write-Down After Reconstruction Scheme Took Effect Was Illegal: Supreme Court

The Supreme Court on Thursday held that the Administrator of Yes Bank could not write down ₹8,415 crore worth of Additional Tier-1 (AT-1) bonds after the bank's reconstruction scheme came into force. The court ruled that the requirement to write down the bonds “before reconstitution” meant before the scheme took effect. “Had the intention been otherwise, the clause ought to have read 'before reconstitution is complete',” a bench of Justices Dipankar Datta and Augustine George Masih observed. It...