The RBI has instructed Banks to release Property Documents within 30 days

Current Context: According to the guidelines, banks and NBFCs have to release all original movable or immovable property documents and remove charges registered with any registry within 30 days after full repayment or settlement of the loan account.

• In case of delay, the banks and NBFCs have to compensate the borrower at the rate of 5,000/- for each day of delay.
• In case of loss or damage to original property documents, the banks and NBFCs have to assist the borrower in obtaining duplicate or certified copies of the property documents and bear the associated costs.
• These directions will be applicable to all cases where release of original movable or immovable property documents falls due on or after December 1, 2023.

Question:

Q.1 What is the deadline for banks and NBFCs to release property documents after loan repayment or settlement?
a. 15 days
b. 30 days
c. 45 days
d. 60 days