In the matter of loan against property, the Reserve Bank has taken a big decision in favor of the customers. Now if banks or NBFCs delay in returning the property documents after repaying the loan, then they will have to pay compensation to the customers. The Reserve Bank has issued a new order in this regard on Wednesday morning.
The Reserve Bank was receiving complaints
The Reserve Bank has issued this order to all commercial banks, regional banks including small finance banks. Sent to rural banks, cooperative banks, NBFCs and asset reconstruction companies. In fact, the Reserve Bank was receiving complaints that even after the customers have fully repaid or settled the loan, banks and NBFCs etc. are delaying the submission of property documents. The Reserve Bank said that due to this delay, situations like disputes and litigation are arising.
What does the Fair Practice Code say
The Central Bank has issued a fresh order to all the concerned financial institutions. Reminded of responsible lending conduct. The Fair Practice Code of RBI gives clear instructions in this regard that if the customer pays all the installments of the property loan or gets the loan settled, then in such a situation he should get the property documents immediately.
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