# RBI sets 30-day deadline for lenders to return property papers 2026-09-24T03:56:46+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet The Reserve Bank of India requires banks and non-banking financial companies to complete loan closure formalities within 30 days of full repayment, failing which they must pay borrowers Rs 5,000 per day as compensation. The rule, effective from December 1, 2023, covers cases where lenders hold original property or collateral documents, including home loans and loans against property. If a lender delays, it must inform the borrower of the reason and pay compensation at Rs 5,000 for each day of delay beyond the 30-day deadline. If original documents are lost or damaged while in the lender's custody, the lender must assist the borrower in obtaining duplicate copies, bear the costs, and has an additional 30 days to complete this. Beyond that, delay compensation applies from the 60th day. Borrowers can escalate delays by submitting a written complaint to the lender, seeking written confirmation of loan closure, or approaching the RBI Ombudsman if the issue remains unresolved. ## Indian Opinion Analysis The RBI's 30-day timeline for returning property documents is part of its 2023 circular on loan aggregation and release of documents. Before this, lenders often held papers indefinitely, leaving borrowers unable to sell or refinance properties. The Rs 5,000-per-day penalty is relatively modest for large housing loans but creates a clear, enforceable obligation. How strictly banks adhere, especially for older loans where document retrieval is cumbersome, will determine if this rule ends a chronic borrower pain point or remains largely on paper. The RBI Ombudsman receives several thousand complaints on this issue annually, and the trend after December 2023 will be a key metric of compliance. ## Coverage - livemint.com Tags: Home loan, RBI Ombudsman, Reserve Bank of India Canonical: https://indianopinion.org/rbi-sets-30-day-deadline-for-lenders-to-return-property-papers/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/rbi-sets-30-day-deadline-for-lenders-to-return-property-papers/#story-in-brief