The Bombay High Court has called upon the Reserve Bank of India (RBI) and the Union Government to examine the need for a regulatory framework to distinguish permissible debt-management assistance from misleading campaigns promising borrowers that their loans can be waived or extinguished. The Court observed that a clear demarcation was necessary between legitimate assistance to borrowers and prohibited activities, and directed that a report examining the issue be placed before it.
A Division Bench of Justice Bharati Dangre & Justice Ashish S. Chavan was hearing a writ petition filed by Bajaj Finance Ltd. concerning campaigns by certain private entities offering Debt Management Plans, loan settlements, foreclosures and legal services to…