Press Information Bureau

Government of India

Ministry of Finance

30-March-2012 17:29 IST

Complaints Against Banks

The Reserve Bank of India’s guidelines inter-alia require that lenders should release all securities on receiving payment of loan or realization of loan. In Banking Codes and Standards Board of India’s (BCSBI’s) Code of Bank’s Commitment to Customers, one of the commitment by banks is to return all the securities/ documents/ title deeds to mortgaged property within 15 days of the repayment of all dues agreed to or contracted. Banks have also committed to compensate for any delay in return of securities/ documents/ title deeds to mortgaged property beyond 15 days of the repayment of all dues agreed to or contracted. With effect from February 3, 2009, any violation of RBI instructions and BCSBI Code by banks has been made a valid ground of complaint under the Banking Ombudsman Scheme 2006. Borrower can lodge a complaint to respective Banking Ombudsman of the region if not satisfied with bank’s action/ reply in this regard. Besides, RBI has informed that their Department of Banking Supervision has been advised to examine such compliance/ instance of delays in release of mortgage of documents, issue of no due certificate on repayment of auto loans in course of the Annual Financial Inspection of private sector banks. RBI has also brought this issue to the notice of Indian Banks’ Association for necessary follow up action.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in the Lok Sabha today.

SS/SL

Return of securities: banks must release mortgage documents on repayment and face complaint remedies for delay. Banks must release all securities and title documents on loan repayment and return mortgage documents within fifteen days, with compensation payable for delays. Non compliance with these regulatory guidelines and the banking consumer code is a ground for complaint under the Banking Ombudsman Scheme, and supervisory inspections review delays and issuance of no due certificates while industry bodies are notified for follow up.