if someone is on notice period do he/she needs to complete RTO?

Yes..You won't get experience letter if you don't adhere

I haven't seen any policy as such, any company don't have right to stop your letters, they might add remarks that's a different case

Yes, It has been decided to not issue the relieving letter and experience letter if RTO is not followed during the notice period

Is it added in the new policy??They are not promoting and deducting QVA as a penalty already

Yes..It is what has been decided by the management