Sole Proprietorship Cannot Be Classified As “Individual Borrowers” As Per RBI Guidelines: NCDRC

The NCDRC ruled that sole proprietorships cannot be classified as individual borrowers under RBI guidelines. The case involved a sole proprietor challenging a bank’s classification of their account, arguing that they should be considered an individual borrower. NCDRC upheld the bank's classification, explaining that sole proprietorships operate as business entities, not individual borrowers, under RBI guidelines. This decision provides clarity on how sole proprietorships are treated in banking disputes.