The Supreme Court on March 27 said borrowers should be allowed to be heard before banks declare their accounts as “fraudulent”. The Reserve Bank of India or RBI had issued a master circular in 2016, allowing banks to classify accounts of wilful defaulters as fraudulent. This circular was challenged in the Telangana High Court, which held in 2020 that borrowers would be heard before any such classification. The State Bank of India and RBI moved the Supreme Court against this order. Now, the Bench of Chief Justice of India D Y Chandrachud and Justice Hima Kohli has upheld the Telangana High Court’s judgment. So, why did the RBI fail to convince the apex court in this regard? And, what does the verdict mean for borrowers?    People planning to take loans and those already in debt are facing the pinch of rising interest rates. At a time when countries across the globe are trying to rein in inflation, banks are drastically increasing the cost of borrowings. At such times, what should borrowers do? Should they wait or should they go ahead and borrow? Also, will interest rates fall in the coming months?  Amid the rising interest rates and inflation, stock market analysts are seeing light at the end of the tunnel. Domestic markets are set to end this financial year (FY23) with negative returns as global central banks tightened monetary policies, squeezing liquidity from the system, in order to tame inflation. As we approach FY24, analysts flag the rising interest rates and higher inflation as major headwinds for equities in the near term. However, they said that favourable macros could turn fortunes in favour of them.  As the stock markets remain subdued, an alternative investment option could be municipal bonds. Of late, the interest around municipal bonds has been surging. Recently, the central government identified several cities with good ratings in this bond market. Reports have suggested that Chennai could launch its own municipal bonds in 2023 itself. So, what are municipal bonds? This episode of the podcast brings you the answer and more.