(Image source from: 'Non-cooperative' borrower classification simplified – RBI})

The Reserve Bank of India has changed the definition of a non-cooperative borrower to embrace all those who have the ability to pay but still prevent lenders' attempts to recover their dues, also includes wrong provision of required information.

The simplified definition shall be the Non-Cooperative borrower is a non-payer who, willingly escapes from the legitimate attempts and activities of the lenders to recover their dues and loans.

The new definition of a non-cooperative borrower replaces the one Reserve Bank of India issued in February, which edited several criteria including not providing required information even after two reminders from lenders.

RBI Governor Raghuram Rajan reiterated that protecting the interest of financers and lenders from defaulters is also their priority.

AW: Kannamsai