The Reserve Bank of India, on Wednesday, said that banks and other lenders must release original property documents to borrowers within 30 days of loan repayment or settlement. If they fail to do so, lenders may have to pay their borrowers a compensation of Rs 5,000 per day, the regulator said in a circular.
Regulated entities such as banks, non-banking financial institutions, housing finance institutions, asset reconstruction company, regional banks and cooperative banks come under the purview of this new directive. Further, the banks must state the reason for delay in returning the documents. "The compensation provided under these directions shall be without prejudice to the rights of a borrower to g
(With inputs from agencies)