In future, banks might have to compensate in addition to pay a penalty if they find yourself dropping the unique property paperwork of debtors. The suggestion was made by a excessive degree committee and may very well be a risk if it’s accepted by the Reserve Bank of India.
The excessive degree committee was fashioned by the RBI final May. Its goal was to assessment customer support requirements in banks and different lending establishments. Led by former deputy RBI governor B P Kanungo, the panel offered its report to RBI in April 2023.
The RBI has invited stakeholders to touch upon the committee’s suggestions by July 7. The suggestion on property papers is a part of a slew of suggestions made by the panel
As per the advice, the RBI might take into account stipulating a time restrict through which banks have to return property paperwork to mortgage seekers from the date of closure of the mortgage account. Failing this, a penalty or a compensation linked to the extent of delay ought to routinely be paid by the banks to the borrower, it stated.
“In case of loss of property documents, the bank should not only be obligated to assist in obtaining certified registered copies of documents at their cost but also compensate the customer adequately, keeping in view the time taken to arrange the alternate copies of the documents,” the panel has advised.
(Inputs from IANS)
