<p>If you have paid off your home or personal loans but banks are delaying the release of your mortgaged property documents, there is good news for you. The Reserve Bank of India (RBI) on Wednesday directed banks and other financial institutions to release original property documents within 30 days after full repayment and settlement of the loan account.</p>.<p>What if the bank does not release the documents within the stipulated 30 days? For the delays banks will be required to pay a fine of Rs 5,000 per day to the concerned borrower.</p>.<p>The RBI has issued a circular in this regard to all regulated entities. This includes all commercial banks, non-banking financial companies (NBFCs), small finance banks, regional rural banks, co-operative banks and asset reconstruction companies.</p>.Courts should refrain from delving into RBI's monetary regulatory framework: Bombay HC.<p>As per the RBI circular, “the REs (regulated entities) shall release all the original movable / immovable property documents and remove charges registered with any registry within a period of 30 days after full repayment/ settlement of the loan account.”</p>.<p>In case of delay in releasing of original documents or failing to file charge satisfaction form with relevant registry beyond 30 days after full settlement of loan, the regulated entities shall communicate to the borrower reasons for such delay.</p>.<p>“In case where the delay is attributable to the RE, it shall compensate the borrower at the rate of Rs 5,000/- for each day of delay,” the RBI noted in the circular.</p>.<p>The borrower shall be given the option of collecting the original documents either from the banking outlet where the loan account was serviced or any other office of the concerned financial institution where the documents are available, as per her/his preference.</p>.<p>These directions will be applicable to all cases where the release of original movable/immovable property documents falls due on or after December 1, 2023.</p>.<p>In case of loss or damage to original documents, either in part or in full, the lender will be required to assist the borrower in obtaining duplicate copies, and shall bear the associated costs, in addition to paying compensation of Rs 5,000 per day.</p>.<p>However, in the case of loss or damage of documents, an additional time of 30 days will be given to the lenders to make available duplicate/certified copies of the documents to borrowers. In such cases the penalty will be calculated after a total period of 60 days. </p>
<p>If you have paid off your home or personal loans but banks are delaying the release of your mortgaged property documents, there is good news for you. The Reserve Bank of India (RBI) on Wednesday directed banks and other financial institutions to release original property documents within 30 days after full repayment and settlement of the loan account.</p>.<p>What if the bank does not release the documents within the stipulated 30 days? For the delays banks will be required to pay a fine of Rs 5,000 per day to the concerned borrower.</p>.<p>The RBI has issued a circular in this regard to all regulated entities. This includes all commercial banks, non-banking financial companies (NBFCs), small finance banks, regional rural banks, co-operative banks and asset reconstruction companies.</p>.Courts should refrain from delving into RBI's monetary regulatory framework: Bombay HC.<p>As per the RBI circular, “the REs (regulated entities) shall release all the original movable / immovable property documents and remove charges registered with any registry within a period of 30 days after full repayment/ settlement of the loan account.”</p>.<p>In case of delay in releasing of original documents or failing to file charge satisfaction form with relevant registry beyond 30 days after full settlement of loan, the regulated entities shall communicate to the borrower reasons for such delay.</p>.<p>“In case where the delay is attributable to the RE, it shall compensate the borrower at the rate of Rs 5,000/- for each day of delay,” the RBI noted in the circular.</p>.<p>The borrower shall be given the option of collecting the original documents either from the banking outlet where the loan account was serviced or any other office of the concerned financial institution where the documents are available, as per her/his preference.</p>.<p>These directions will be applicable to all cases where the release of original movable/immovable property documents falls due on or after December 1, 2023.</p>.<p>In case of loss or damage to original documents, either in part or in full, the lender will be required to assist the borrower in obtaining duplicate copies, and shall bear the associated costs, in addition to paying compensation of Rs 5,000 per day.</p>.<p>However, in the case of loss or damage of documents, an additional time of 30 days will be given to the lenders to make available duplicate/certified copies of the documents to borrowers. In such cases the penalty will be calculated after a total period of 60 days. </p>