As part of Fair Practices Code and to make things uniform, RBI asked "REs to release all the original movable/immovable property documents and remove charges registered with any registry within a period of 30 days after full repayment/settlement of the loan account."
In case where the delay in releasing of original property documents is attributable to the regulated entity, it shall compensate the borrower at the rate of Rs 5,000 for each day of delay, the RBI says in directions to lenders
The Reserve Bank on Wednesday directed banks and financial institutions to release all original movable or immovable property documents and remove charges registered with any registry within 30 days after full repayment of a loan by the borrower.
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