RBI to Banks: Return Property Papers to Borrowers Within 30 Days of Repayment
RBI to Banks: Return Property Papers to Borrowers Within 30 Days of Repayment The Reserve Bank of India (RBI) has directed banks and other lenders to release all original movable or immovable property documents within 30 days of full repayment or settlement of loans by borrowers. The new directive, which is part of the RBI’s Responsible Lending Conduct framework, will be applicable to all cases where the release of original property documents is due on or after December 1, 2023. The RBI’s move is a welcome step for borrowers, who have long faced delays and hassles in getting their property papers back after repaying their loans. In the past, banks and lenders have often cited various reasons for the delay, such as the need to verify the repayment or to remove their charges from the property records. However, these delays can cause significant inconvenience to borrowers, who may need to use their property papers for other purposes, such as selling the property or obtaining a new l...