RBI issues guidelines for responsible lending; sets 30 day-limit to release property documents after loan closure
Also Read: UBS's Credit Suisse takeover, 'deal of the century'? In case of delay in releasing of original property documents or failing to file charge satisfaction form with relevant registry beyond 30 days after settlement of loan, the RE shall communicate to the borrower reasons for such delay. However, if the delay is attributable to the RE, it shall compensate the borrower at the rate of ₹5,000 for each day of delay, the RBI said.
Additionally, in case of loss or damage to original property documents, the REs shall assist the borrower in obtaining duplicate or certified copies of the property documents and shall bear the associated costs, in addition to paying compensation. However, in such cases, an additional time of 30 days will be available to the REs to complete this procedure and the delayed period penalty will be calculated thereafter.
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