New Property Rules : Reserve Bank of India (RBI) has recently announced new property rules. According to RBI, the regulated firm will provide property documents to retail loan borrowers within 30 days of full repayment of the loan amount. If there is a delay in doing so, they will have to pay a penalty. These new rules will come into effect from December 1, 2023. RBI had disclosed this in a notice issued on September 13.
Documents will have to be given within 30 days
According to RBI, banks and non-bank financial companies (NBFCs) will have to return documents of movable and immovable property. The documents of the mortgaged immovable property will have to be returned within 30 days of taking out the loan. Earlier, banks and NBFCs used to return the documents to the borrower as per their convenience. Customers were very upset due to this. The new rules have been made keeping this in mind. Often the house itself is mortgaged for a home loan. At the same time, for personal loan, banks pledge insurance policies, shares or securities.
The bank will have to pay a fine of Rs 5,000
According to RBI instructions, if the lender does not repay the loan documents within 30 days, a daily fine of Rs 5,000 will be imposed on the bank. This money will be given directly to the borrower. Customers will have the right to collect the documents from the branch from where the loan has been taken. Or they can also be taken from any other branch where the documents are available. The bank will also ensure that in the event of the death of the borrower, the documents reach the rightful heir easily.
Papers should not be damaged
The loan department will inform you about the date and place of return of the documents. The loan granting bank will see to it that there is no damage to the papers. Customers get the correct documents without any charges. Another 30 days time can be given for this. This shows that banks and NBFCs will have 60 days to issue the document. If they do not do so, they will be fined Rs 5,000 per day.
