RBI – Recently the Reserve Bank of India has made a big announcement in the interest of the borrowers. Let us tell you that RBI has issued instructions to banks and financial institutions. RBI said in a notification that if the regulated institutions fail to comply with the instructions, they will have to pay a compensation of Rs 5,000 per day to the borrower.
RBI Guidelines: The Reserve Bank of India made a big announcement in the interest of borrowers on Wednesday, September 13. He issued instructions to banks and financial institutions. Under this, banks and financial institutions will have to issue all the original movable or immovable property documents within 30 days of the full repayment of the loan by the borrower. Additionally, registration fees in any registry will also have to be waived.
Will have to pay a compensation of Rs 5 thousand every day-
RBI said in a notification that if the regulated institutions fail to comply with the instructions, they will have to pay a compensation of Rs 5,000 per day to the borrower. It was further stated by RBI that regulated entities follow a variety of practices in issuing such movable or immovable property documents, leading to customer complaints and disputes.
The bank will be responsible –
According to the RBI notification, if there is any damage to the original documents of a customer or they are lost, then in such a situation the concerned financial institution will be responsible. It will also help in getting the duplicate or certified copy of such documents of the borrower by the bank itself. Not only this, the financial institution will also have to pay compensation for this.
You will get time up to 60 days-
For your information, let us tell you that financial institutions have an additional time of 30 days to complete the process after the borrowers repay the entire loan. In such a situation, the bank has a total period of 60 days, even after which if the borrower does not receive his documents, then the bank will have to pay a compensation of Rs 5000 for every day.
RBI has also said that these instructions will be applicable to all those cases where the release of original movable/immovable property documents occurs on or after December 1, 2023.
