Good news for borrowers: This decision of RBI will become a security shield; Banks will have to pay fine

On taking a loan, many documents are asked of the applicant by the bank. These documents are kept by the banks till the loan tenure is over, but it is seen many times that they get lost due to the long period of time the documents are with the bank. In view of this problem, an important decision has been taken by the Reserve Bank of India in the interest of the borrowers.
It has been said on behalf of RBI that if the documents related to the loan of any person are lost from the bank, then the bank may have to pay a fine to that person. This will give great relief to all those people who have taken a loan from the bank. At the same time, it is believed that due to missing the necessary documents from the bank, people will also get rid of the rounds of government offices.
In April of 2023, a report was submitted to the Reserve Bank of India by BP Kanungo, former deputy governor of RBI, stating that if the documents of a person taking a loan from any bank are lost, then that person should pay a fine to the bank. May have to Regard these recommendations, suggestions have been sought from all the parties by the central bank.
In the report, suggestions have also been given regarding the rules for returning the necessary documents to the customers by the banks. It has been told in the report that after the completion of the loan, the banks will have to fix a date for returning the documents to the customers. By this date, the banks will have to return the documents to the customers. If a bank does not return the documents by the due date, it will have to pay a penalty to the customer.
Customers have to submit documents when any person takes a secured loan such as a home loan, car loan, gold loan, etc. These documents along with the NOC have to be returned to the banks after the loan is completed.