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Dec 11, 2012
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Banks get SC's backing on derivative defaults
The Supreme Court on Tuesday ruled that banks were entitled to declare as a wilful defaulter any person who did not repay his dues under a foreign exchange derivatives contract. This was legal and within the various circulars issued by the Reserve Bank of India ( RBI) in dealing with derivative transactions, the apex court said. The judgment paves the way for banks to resume recovery proceedings, which were stalled as the matter was sub judice.
Source -
http://business-standard.com
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