by propdecide.com 
In case of a delay, a compensation of Rs 5,000 per day will be applicable for each day of delay in releasing the property documents. RBI issues rules for returning property documents, papers will have to be returned within 30 days of full loan payment.
The new guidelines underline RBI’s proactive approach towards making lending processes more borrower-centric, hassle-free, and transparent, thereby helping foster a more customer-friendly banking atmosphere.
It has been observed that Regulated Entities (REs), which include banks and non-banking finance companies (NBFCs), National Housing Bank (NHB), etc., that are regulated by the Reserve Bank of India and follow the guidelines set by the central bank, have varied practices in releasing secured property documents post-loan settlement, often leading to customer grievances and disputes.
“According to the new guideline, the original documents for a movable or unmovable property must be released within 30 days of full repayment of the loan taken for said property. In case of a delay, a compensation of Rs 5,000 per day will be applicable for each day of delay in releasing the property documents. If the original property documents are lost or damaged, the regulated entities must assist the borrower to obtain duplicate/certified copies of the property in question within a period of 30 days. This move could help ensure that regulated entities abide by the set rules and provide borrowers a greater scope of recourse with regard to property-related issues,” said Adhil Shetty, CEO of Bankbazaar.com.
Furthermore, in scenarios where original property documents are lost or damaged, REs are mandated to offer necessary assistance to borrowers in procuring duplicate or certified copies within a span of 30 days. The REs are required to bear the associated cost. This directive could be a significant stride towards ensuring compliance with regulations by lending institutions and providing borrowers with a larger remedy scope in case of property document-related issues.
Read Full Report On https://www.businesstoday.in/personal-finance/top-story/story/rbi-introduces-guidelines-for-timely-release-of-property-papers-to-borrowers-after-loan-repayment-398226-2023-09-13