The government continues to introduce new rules and schemes aimed at making everyday life easier for citizens. One such rule related to home loans is currently drawing significant attention, and for good
reason, as it can potentially put a substantial amount of money back in your pocket.
When you take a home loan, banks retain your original property documents, such as the sale agreement and title deed, as security. Once the loan is fully repaid, these papers are meant to be returned promptly. However, in many cases, banks delay the process for months or even years, causing unnecessary stress for borrowers and raising concerns about the safety of these important documents.
To fix this issue, the Reserve Bank of India (RBI) has issued a clear directive that banks must return all original property documents within 30 days of full loan repayment. If they fail to do so, they are liable to pay a penalty of Rs 5,000 for each day of delay.
A content creator recently highlighted this rule by sharing her own experience, claiming they had to wait 130 days to receive their documents. As per RBI norms, this delay translated into a penalty of Rs 5 lakh, which the bank was required to pay. The creator urged homeowners to check the status of their property papers and ensure their rights are upheld.
‘Rs 5000 Per Day Penalty For Banks’
Taking to Instagram, the content creator said, “When we take a home loan, we have to submit all the original property papers to the bank, such as the sale deed, title deed and other related documents. The bank returns these documents after the loan is fully repaid. But many times, even after repaying the loan, banks do not return these documents for months or even years. To avoid this delay, RBI has given a strong option under which the bank must return all your original documents within 30 days of loan repayment.”
“If the bank does not return your original documents, it has to pay you a compensation of Rs 5000 for every day of delay. For example, in my case, it has been 130 days since I repaid the loan and the original papers are still with the bank. So, for 100 days of delay, the bank has to pay me Rs 5 Lakh. So quickly check whether your original documents are still with the bank,” she added.
🚨Banks owe you money – and you might not even know it! 💥 When you take a home loan, you submit all your original property documents—like sale deed, title deed, and other important papers—to the bank. These documents are supposed to be returned once your loan is fully repaid.… pic.twitter.com/PNZcbdcGRi
— Mohini Monarch (@MohiniWealth) January 16, 2026
Reacting to the post, a user wrote, “If your bank delays: Raise a written complaint. Escalate to the bank’s grievance cell. Approach the RBI Banking Ombudsman if needed.”
“Then take all the money from Standard Chartered. They send the property papers to a foreign country and take time to send them back,” a comment read.
One more added, “And on the basis of that same document, the bank shows the RBI that the loan is still continuing.”
What Happens If Documents Are Lost Or Damaged
According to reports, this home loan rule came into effect on December 1, 2023. Under the directive, banks are required to take full responsibility for the safekeeping of borrowers’ original property documents. If these papers are lost or damaged, the bank must assist the borrower in obtaining duplicate copies and bear all the associated costs.
The rule has been introduced to safeguard borrowers’ interests and ensure that banks handle critical property documents with greater care, returning them promptly once the loan is fully repaid.
