If property documents are not given after the loan, the bank will give a compensation of Rs 5000 every day. RBI guidelines
Have you repaid the loan but have not yet received the property documents from the bank? If not, no problem, the bank will pay you Rs 5000 per day as compensation for delay. Yes, this is possible due to the new guidelines issued by the Reserve Bank of India (RBI). In a new directive issued on September 13, RBI directed regulated entities (REs), including banks, NBFCs (including HFCs), ARCs, LABs and co-operative banks, to submit property documents within 30 days of the customer’s loan being fully repaid. Is. If this instruction is not followed, a fine of Rs 5,000 will be imposed for any delay.
Will come into effect on December 1, 2023
According to the news, this new instruction of RBI is going to come into effect on December 1, 2023. As per the Guidelines on Fair Practices Code issued to various Regulated Entities (REs) since 2003, REs are required to release all movable and immovable property documents upon receiving full repayment and closing the loan account. According to cnbctv18 news, RBI has said in a circular that regulated entities follow different methods in issuing such movable and immovable property documents, which has led to customer complaints and disputes.
then the charges will be removed
The instructions also clarify that REs will issue all original movable and immovable property documents and remove any charges within a period of 30 days after complete repayment or settlement of the loan account. According to RBI, the deadline and place of return of original property documents will be clearly mentioned in the loan sanction letters issued on or after the effective date. In case of delay in submitting the documents, penalty will be calculated for the period which will be a total of 60 days.
The process will be made easier
Additionally, to address the unfortunate event of demise of the single borrower or joint borrowers, REs should put in place a well-defined process to return the original property documents to the legal heirs. This process will also be made easier on the websites of REs. According to the news of cnbctv18, the Reserve Bank of India (RBI) has given these instructions under Section 21, 35A and 56 of the Banking Regulation Act, 1949, Section 45JA and 45L of the Reserve Bank of India Act, 1934 and Section 30A of the National Housing Bank Act, 1987. Are issued under.
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