RBI New Rule: Ever felt helpless after repaying your bank loan—only to be left chasing your property documents for weeks? You’re not alone. It’s more common than you think, and it’s caused stress, legal trouble, and sleepless nights for countless families across India.
But here’s the good news: RBI just stepped in with a game-changing rule that could bring you justice—and compensation.
RBI’s New Rule: ₹5000 Per Day Penalty If Bank Delays Your Property Documents
RBI has heard your pain—and they’ve acted.
Now, if a bank or NBFC delays returning your property documents after you’ve repaid the loan, they’ll owe you ₹5000 for every single day of delay. Yes, you read that right.
Here’s what the new rule says:
- After full loan repayment, banks must return your property papers within 30 working days.
- If there’s any charge on the property in a registry, it must also be cleared.
- If they miss the deadline, you’re entitled to ₹5000 per day until you get your documents.
It’s a bold move—and a much-needed one.
Why Did RBI Do This?
This didn’t come out of the blue.
RBI received hundreds of complaints from frustrated borrowers. Some waited months. Others got stuck in legal disputes because banks wouldn’t return papers. Many people even had trouble transferring property to their children or selling their homes.
This new rule is a direct response to that.
It’s RBI saying: “You deserve better—and we’re holding banks accountable.”
What Banks Have to Do Now (And What You Should Know)
RBI’s made it crystal clear:
During loan approval:
- Banks must tell you exactly which branch will return your property documents after repayment.
- This info has to be written in the loan approval letter—no more confusion later.
After loan repayment:
- Banks must inform you where and how to collect your documents.
- If you’re a legal heir of someone who passed away with an active mortgage, the bank must give you the property documents, too.
And if your documents are lost? It’s the bank’s job to help you get duplicates.
Quick Summary: What You Need to Remember
| Scenario | What Happens Now |
|---|---|
| Loan repaid | Bank must return property documents within 30 working days |
| Delay in return | You get ₹5000/day as compensation |
| Legal heirs | Can claim property papers if the borrower passes away |
| Lost documents | Bank must help you get certified duplicates |
| Loan approval | Bank must mention return branch in your approval letter |
What You Should Do If You’re Facing This
If you’ve repaid a loan but your documents are still with the bank, here’s a quick step-by-step:
- Contact the branch where the loan was closed.
- Ask for the property documents—mention the 30-day RBI rule.
- Keep written proof (emails, letters) of your request.
- If 30 working days pass, demand ₹5000/day as compensation.
- Still no response? File a complaint with the RBI or Banking Ombudsman.