India, Aug. 25 -- The Delhi High Court has said that the non-encashment of bank guarantees worth around Rs 800 crore issued in connection with Reliance Communications will not be treated as an RBI default until the next hearing on 3 September. The interim direction provides temporary relief to the banks involved in the dispute over the Department of Telecommunications' invocation of the guarantees.

Court Grants Interim Relief to Banks Justice Mini Pushkarna issued the direction while hearing petitions filed by Reliance Communications-related entities and four banks, Yes Bank, State Bank of India, Punjab National Bank and Canara Bank, challenging the DoT's decision to invoke the guarantees.

The court said that, until it considers the leg...