Property Papers in Your Hands: RBI’s Timely Release Guidelines!
The Reserve Bank of India (RBI) has introduced new guidelines to ensure that banks and other lending institutions release property papers to borrowers within 30 days of full loan repayment. These guidelines are applicable to all loans secured by movable or immovable property.
The guidelines state that if a lending institution fails to release the property papers within 30 days of full loan repayment, it will have to pay a compensation of ₹5,000 per day to the borrower. The compensation will be payable from the day after the 30-day period has elapsed till the day the property papers are released.
The RBI has also stated that if the lending institution loses or damages the property papers, it will have to assist the borrower in obtaining duplicate copies of the papers within 30 days. If the lending institution fails to do so, it will have to pay a compensation of ₹5,000 per day to the borrower, starting from the day after the 30-day period has elapsed till the day the duplicate papers are obtained.
The RBI’s new guidelines are a welcome move for borrowers. They will help to protect the interests of borrowers and ensure that they are not delayed in getting their property papers back after loan repayment.
Here are some of the key benefits of the RBI’s new guidelines for borrowers:
- Timely release of property papers: The guidelines ensure that borrowers will get their property papers back within 30 days of full loan repayment.
- Compensation for delay: If the lending institution fails to release the property papers within 30 days, it will have to pay compensation to the borrower.
- Assistance in obtaining duplicate papers: If the lending institution loses or damages the property papers, it will have to assist the borrower in obtaining duplicate copies within 30 days.
Borrowers who are facing delays in getting their property papers back after loan repayment should contact their lending institution and remind them of the RBI’s new guidelines. If the lending institution still fails to release the property papers, borrowers can file a complaint with the RBI.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
