Reserve Bank of India has asked all the financial institutions to release all movable/immovable property documents within 30 days upon receiving full repayment and closure of personal loan accounts.
RBI has said that, in case of delay financial institutions shall compensate the borrower at the rate of ₹5 thousand for each day of delay. These Directions will be applicable from 1st december 2023.
In case of loss/damage to original movable / immovable property documents, the financial institutions shall assist the borrower in obtaining duplicate/certified copies.
An additional time of 30 days will be available to the financial institution to complete this procedure and the delayed period penalty will be calculated thereafter i.e. after a total period of 60 days.
RBI has observed that the financial institutions follow divergent practices in release of such movable / immovable property documents. Bank has issued these guidelines to address the issues faced by the borrowers.
The compensation provided under these directions shall be without prejudice to the rights of a borrower to get any other compensation as per any applicable law.
