Banks Will Pay ₹5K Daily for Holding Property Post-Settlement
Banks Didn’t Release Property Documents
It was observed that banks did not release the property documents for loans against collateral, even after the loan was paid.
New RBI Mandate
So, RBI brought a mandate where,
from 1st Dec 2023, it will be
compulsory to return the documents
to you within 30 days of full repayment.
Particulars of the Loan
The loan sanction letter will mention the
documents' time & place of return
If the borrower dies, banks return documents to legal heirs by a procedure.
What if the Documents are Not Released?
If the bank does not release the property documents with 30 days of repayment they will have to
pay ₹5,000 for each day of delay
What if the Documents are Damaged?
If the documents are damaged, the
banks will help the borrower make new ones
and extend the deadline to 60 days.
Impact of This Step
This RBI initiative will
ensure peace of mind for borrowers
and make the banks more responsible.
Earn 9 - 11%
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