What you can do if the Bank does not return your property documents, RBI Notification
A recent RBI directive mandates banks to return all original property documents to borrowers within 30 days of full loan repayment. The directive was issued on September 13, 2023, and applies to all banks and non-banking financial institutions (NBFCs) in India.
The directive was issued in response to complaints from borrowers who had been unable to get their property documents back from banks even after they had repaid their loans in full. The directive also clarifies that banks cannot charge fees for returning the property documents.
If a bank fails to return the property documents within 30 days, it will be liable to pay a penalty of Rs 5,000 per day of delay, up to a maximum of Rs 2 lakh. The borrower can also file a complaint with the RBI, which can take further action against the bank.
The directive is a welcome move that will protect the rights of borrowers. It is crucial for borrowers to be aware of their rights and to demand their property documents back from banks as soon as they have repaid their loans in full.
Here are some of the steps that borrowers can take if a bank fails to return their property documents:
- First, try to resolve the issue with the bank directly. You can write to the bank manager or the customer service department requesting the return of your property documents.
- If the bank does not respond to your request, you can file a complaint with the RBI. You can do this online or by mail.
- The RBI will investigate your complaint and take appropriate action against the bank.
- You can also file a civil suit against the bank in court.
It is important to remember that you have rights as a borrower. You should not be afraid to stand up for your rights and demand the return of your property documents.