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Banks to pay Rs 5,000 a day for delay in returning property documents: RBI
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Banks to pay Rs 5,000 a day for delay in returning property documents
RBI's new measures will be applicable to all cases where the release of original movable or immovable property documents falls due on or after December 1, 2023.
The central bank issued a directive to banks on September 13, asking them to release all movable or immovable property documents upon receiving full repayment and closure of the personal loan account.
Failing to comply with the direction, Regulated Entities (REs) would compensate the borrower at the rate of Rs 5,000 for each day of delay, RBI said in a notification.
Source : Moneycontrol : https://www.moneycontrol.com/news/business/pers...
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Compensation will be provided for delays in releasing documents. If the bank is responsible for the delay, it will compensate the borrower at a rate of Rs 5,000 for each day of delay.
* In cases of loss or damage to original documents, either partially or entirely, banks should assist the borrower in obtaining duplicate or certified copies of the documents and bear the associated costs. An additional 30-day period is allowed for completing this process, and the delayed period penalty will be calculated thereafter (total of 60 days).
