Return property papers to borrowers within 30 days of repayment or pay Rs 5k/day for delay, RBI to banks
Mumbai, Sep 13 (PTI) The Reserve Bank on Wednesday directed banks and financial institutions to release all original movable or immovable property documents and remove charges registered with any registry within 30 days after full repayment of a loan by the borrower.
Failing to comply with the direction, Regulated Entities (REs) would compensate the borrower at the rate of Rs 5,000 for each day of delay, RBI said in a notification.
RBI noted that REs follow divergent practices in release of such movable or immovable property documents leading to customer grievances and disputes.
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