THE RESERVE Bank of India (RBI) on Wednesday directed banks and other lenders, including non-banking financial companies (NBFCs), housing finance companies and cooperative banks, to release all original movable or immovable property documents within 30 days of full repayment or settlement of personal loans by borrowers.
In case of delay, the lenders will have to compensate the borrowers by paying Rs 5,000 for each day of delay, the RBI said. The directions, released as part of responsible lending conduct, will be applicable to all cases where release of original property documents is due on or after December 1 this year.
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