Can a Bank Classify a Cash Credit Account as NPA Solely for Low Turnover? Orissa High Court Reaffirms the Primacy of RBI’s 90-Day “Out of Order” Norm—Binding Authority for Asset Classification Disputes
Orissa High Court holds that banks cannot classify a borrower’s cash credit account as a Non-Performing Asset (NPA) based purely on low turnover unless the objective 90-day “out of order” criteria under RBI guidelines are satisfied. This decision upholds established RBI norms, clarifies the limits of bank discretion, and is binding on all subordinate courts […]