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 Sanction Letter

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.