Supreme Court directs RBI to ensure banks follow loan recovery rules

The Supreme Court has directed the Reserve Bank of India to ensure that banks and non-banking financial companies comply with loan recovery regulations. The court observed that default on loan payments does not authorise lenders to seize vehicles by force.

The directive underscores the need for regulated financial institutions to adhere to prescribed procedures when recovering dues from borrowers. The court's intervention aims to protect consumers from arbitrary repossession practices.