<h1>Court rules RBI wilful defaulter classification requires clear, verified evidence of intentional fund diversion under RBI Master Circular</h1> The Delhi High Court ruled that the classification of a former company director and his mother as 'wilful defaulters' under the RBI Master Circular is legally unsustainable. The court dismissed appeals by two banks, finding that they failed to provide verified and objective evidence proving intentional diversion or siphoning of borrowed funds. The bench emphasized that declaring someone a wilful defaulter causes significant consequences and must be based on clear, objective facts and the borrower's overall conduct. The decision upheld a prior single-judge ruling that the criteria for wilful default were not met in this case.