On Monday, The Reserve Bank of India (RBI) has redefined the term non-cooperative borrowers to include those who block legitimate efforts of the lenders in recovering their dues, in order to allow banks to classify additional loans to them as standard assets.
The cut off limit for classifying a borrower as non-cooperative borrower will be those who have borrowed over Rs.5 crore. In a circular, the central bank said a non-cooperative borrower is one who defaults on timely payment of dues despite having the ability to pay.
