......RBI is also looking at creating a separate category for borrowers considered “non-cooperative” and intends to make it tougher and more expensive for such borrowers to borrow from the banking system. “We are looking at our own definition of non-cooperative defaulter and trying to see how we can make it operational. Non-cooperative defaulters may not be in violation of the laws but we have this genre of promoters who hold up collections at every court using every instrument,” said Rajan. “That’s perfectly legal but from the perspective of the financial system it’s a problem because it can take years to collect. So we are saying that you are not a criminal but you are a financial risk. From that perspective, can we increase the cost of any new loans made to that person? Hopefully that makes the person think twice. So there is a financial stability angle there,” ...............
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