RBI’s Major Move: Banks Must Return Home Loan Papers in 30 Days

Responsibilities of Banks Regarding Lost or Damaged Property Documents for Home Loan Customers

If a home loan customer loses their property documents or if the documents get damaged, the responsibility lies with the bank. The RBI has made it clear that in such situations, banks are required to compensate customers. RBI has provided instructions to banks that in cases where documents are lost or damaged, banks must prepare new documents within 30 days and return them to customers, and the customers must be refunded their loan amount.

Relief for Home Loan Customers: Prompt Return of Registered Papers by Banks

The Reserve Bank of India (RBI) has given significant relief to home loan customers. Now, after completing the home loan, you will receive your registered papers within 30 days. RBI has also issued instructions to banks. If the bank does not return the registration papers within 30 days, the bank will have to pay a daily penalty of Rs. 5000.

RBI’s Clear Guidelines for Returning Property Documents to Home Loan Customers

RBI has issued clear guidelines to banks regarding returning property documents. Until the loan is fully repaid, customers had to run around to get their papers due to the bank’s process, causing them many troubles.

Now, after completing the loan, customers will receive their registered papers within 30 days. This means that customers can easily obtain their documents in a timely manner.

This decision will provide significant relief to home loan customers. RBI has also clarified to banks that those customers who return the documents will not be delayed. If any bank does this, then they will have to pay a fine of Rs. 5000 per day. In fact, there were so many complaints that even after repaying the loan, customers were not easily getting their property documents. Therefore, RBI has issued these instructions to banks and NBFC companies.