New Delhi: In a measure to provide respite to the home loan seekers, the Committee headed by former chairman of SEBI M Damodaran has recommended the Reserve Bank of India (RBI) to undertake steps to ease the norms meant for pay back system.

The Committee has proposed that all banks must permit home loan seekers or borrowers to switch over from fixed to floating rates or vice versa at least once during the loan tenure at an appropriate and reasonable fee.

The Committee has also proposed that the banks should not recover the fat penalty on the pre-payment of home loan. The banks allow the pre-payment at the rate of 2-2.5 percent.

Banks have been asked to return the title deed agreement to customers within 15 days of the loan closure, failing which the customer should be compensated. In addition to it, the banks will have to provide the full details of service charge on the basic services.
The Committee has told the banks to appoint a Chief Grievance Redressal officer. The committee has also recommended that the pensioners should be allowed to deposit life certificate in any branch.

JPN/Bureau