The Bombay High Court on Monday granted interim stay on the effect of the master circulars issued by the Reserve Bank of India that permits banks to declare any account as a fraud account without a hearing.

A division bench of Justices Gautam Patel and Neela Gokhale stayed effect of the Reserve Bank of India Master Directions on Frauds Classification and Reporting by Commercial Banks and Select FIs issued in 2016 till September 11 when it would hear petitions challenging the same.