Those having ability to pay but are still defaulting and thwarting lenders efforts for recovery of their dues by hiding information would be classified as non-cooperative borrowers, RBI said on Monday.
Modifying the definition of a non-cooperative borrower, Reserve Bank said,:"In effect, a non-cooperative borrower is a defaulter who deliberately stone walls legitimate efforts of the lenders to recover their dues." It will also include those not engaging constructively with lender, do not provide necessary information sought, deny access to assets financed/collateral securities and obstruct sale of securities.
Borrowers with aggregate fund-based and non-fund based loans (like bank guarantee and letter of credit) of Rs5 crore can be classified as non-cooperative in such instances, RBI said in a release. A non-cooperative borrower in case of a company will include, besides the company, its promoters and directors (excluding independent directors and directors nominated by the government and the lending institutions).
For business enterprises (other than companies), non-cooperative borrowers would include persons in charge and responsible for management of the business. The new criterion for non-cooperative borrowers will replace the one released in February. Banks or financial institutions (FIs) will be required to report information on their non-cooperative borrowers to Central Repository of Information on large Credits (CRIlC) set up by the RBI so as to collect, store, and disseminate credit data to lenders.