RBI Announcement: The country’s largest bank RBI has issued many notices for loan repayment or settlement. Under this, RBI has directed banks and non-banking companies to issue all the documents of movable and immovable property to the customers within 30 days of settlement of the loan. These are the same documents which the customers have pledged with the bank or NBFCS while taking the loan. This rule of RBI will be implemented from December 1, 2023.
This much fine will be charged every day
If RBI instructions are not followed then a lot of problems may arise for the bank. According to the new guidelines, in case of any delay in issuing all the documents, a fine of Rs 5,000 will be imposed on the bank or NBFCS every day. The bank will pay this fine as compensation to the customers.
What will happen if there is a loss?
If all the documents of the customers are lost by the lenders i.e. banks or NBFCs, then instructions have also been issued for this. In this situation, the customers will have to be assisted in getting duplicate or approved copies and apart from paying the compensation, they will also have to bear the expenses related to it. Additionally, the lenders should have a well-established mandate for the return of the original movable and immovable property papers to the legal heirs in the event of the demise of the customer.
According to the RBI circular, it is mandatory for lenders to release all movable and immovable property documents in case of loan repayment or closure of the loan account. It has also been observed that lenders follow different rules in issuing documents, which leads to customer complaints and disputes. Now after the new instructions of RBI, customers will get their papers in 30 days. For information, let us tell you that RBI has issued these instructions under Section 21, 35A 1934 and Section 45JA and 45L of the Banking Regulation Act 1949.