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Context:  The Supreme Court ruled that the Reserve Bank of India's Circular on the classification of bank accounts as fraud accounts must be interpreted in accordance with the "audi alteram partem" principles.

More about the Supreme Court Judgement

• The Supreme Court bench highlighted that classifying accounts as fraudulent has significant legal and financial consequences for borrowers; this basically "blacklists" borrowers; therefore, borrowers must be given the right to be heard.
• According to the court's ruling, the Reserve Bank of India's circular designating certain bank accounts as fraud accounts must be interpreted in accordance with the "audi alteram partem" principles.

"audi alteram partem" principles

• Audi alteram partem means as "hear the other side as well" or "listen to the other side."
• It is based on the idea that no one should be sentenced without first receiving a fair trial and an opportunity to confront the evidence against them.
• In most legal systems, "Audi alteram partem" is regarded as a fundamental principle of justice, equity, or the doctrine of natural justice.

Fraud Registry and Integrated Ombudsman Scheme

https://www.iasgyan.in/daily-current-affairs/fraud-registry-and-integrated-ombudsman-scheme

https://www.livelaw.in/top-stories/breaking-banks-must-give-opportunity-of-hearing-to-borrowers-before-classifying-their-accounts-as-fraud-supreme-court-224828

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