An Essential Guide To Housing Loan
December 26, 2022 | 4 min read
The Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) is a centralised online platform developed by the Reserve Bank of India (RBI) to maintain records of all types of securities interests created over any type of property, whether movable or immovable.
This registry was introduced to enhance transparency and accountability in the Indian banking and financial sector by preventing fraudulent transactions. This article will cover essential information about CERSAI, its objectives, the registration process, and more.
As the CERSAI full form suggests, this platform acts as a comprehensive database that stores details of all securitisations, reconstructions, and security interests created by banks and financial institutions. CERSAI helps lenders verify whether a property has already been used as collateral before granting loans to borrowers.
This is crucial in minimising fraudulent activities such as multiple financing and benami transactions. Additionally, CERSAI enhances the efficiency and transparency of the loan processing system, allowing lenders to track and manage their assets effectively.
CERSAI is instrumental in promoting transparency and accountability within the financial system. Here are some key objectives of the registry:
Different types of transactions under CERSAI carry varying fees. Below is a breakdown of the charges, excluding taxes:
These charges are subject to change and may vary based on the specific circumstances of the transaction. For the most current pricing information, consult the CERSAI website or contact their customer service.
To log in to the CERSAI portal, follow these steps:
Entities seeking CERSAI registration must follow a specific process. Here are the steps involved:
The first step is to obtain a Permanent Account Number (PAN) from the Income Tax Department. This unique identifier is essential for the registration process.
Ensure that your entity meets the RBI's eligibility criteria. These criteria include being a financial institution, bank, or Non-Banking Financial Company (NBFC), having a valid PAN number, and meeting the minimum capital adequacy requirements.
Gather the necessary documents, which may include:
Complete the CERSAI application form, which is available on the official CERSAI website. Ensure that all information provided is accurate and complete.
Pay the prescribed registration fees. The fee structure varies based on the type of entity and the amount of security being registered. Ensure that the payment is made through the proper channels specified by CERSAI.
Submit the completed application form along with the required documents. Upon successful submission, you will receive an acknowledgement receipt indicating that your application is under review.
Wait for approval from CERSAI. Once approved, your entity can log in to the CERSAI portal and use its services. The approval process may take some time, so it is important to follow up if there are any delays.
CERSAI is a vital initiative by the RBI to streamline the process of registering securities and assets in India. The platform ensures transparency, security, and efficiency in the financial sector.
Entities and individuals can make the most of this essential platform by understanding the registration process, login procedures, and associated charges. CERSAI's user-friendly interface and robust eligibility criteria make it an indispensable tool for enhancing financial inclusion and stability in India.