Important Information on CERSAI And How to Get Registered on Their Website

CERSAI was created to curb fraudulent activities against equitable mortgages in lending transactions. CERSAI's full form is Central Registry of Securitisation Asset Reconstruction and Security Interest of India. The company is licensed by the government of India under Section 8 of the Companies Act, 2013. It was created to detect and distinguish deceptive lending practices from fair home loans. Simply put, the organisation was created to prevent the behaviour of taking out several loans from different banks using the same resource. To know more about what is CERSAI, read further.

What is CERSAI?

As explained above - CERSAI was created to curb fraudulent activities. CERSAI means avoiding taking out several loans from the same source. For example, Mr X taking loans from banks - A, B and C. And what Mr X uses as a source of guarantee is the same real estate property for all. Before the existence of CERSAI, proper registration of transactions of properties did not happen. All legal paperwork remained solely between the lender and borrower/buyers. This led to many fraudulent schemes - falsification of the original deed, selling a property with unpaid loans attached to it. CERSAI verification has made the registration system much safer and handier to work with. The CERSAI Full form in banking is the Central Registry of Securitisation Asset Reconstruction and Security Interest of India.

The company has major stakeholders which are mostly public sector banks. While the Central govt. of India has major shares in CERSAI, in March 2021, RBI stated that it may pick up on the 51% stake as it deals with major finances of the country. While the remaining 49% of shares belong to state banks such as the State Bank of India, and Punjab National Bank and a major sum of shares belong to the National Housing Bank.

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Accessibility

For a charge, any bank, financial organisation, or individual can use CERSAI's registration platform. By registering with CERSAI, lenders can access information on an asset or property to see if any previous security interests (banks, financial institutions, etc.) have been created.

This is usually done before a loan is approved by the borrower. This is especially advantageous for legitimate property purchasers, as CERSAI allows them to access all essential information from the registry to determine whether the property they are interested in is free of any liabilities incurred by another lender.

Who owns CERSAI?

While the central government now owns the majority of the company, the CERSAI warned in March 2021 that the Reserve Bank of India (RBI) can buy the government's 51% ownership in the central registry. It is so because all of its duties are related to banking.

State-run lenders, including State Bank of India, Punjab National Bank, and Bank of Baroda, as well as the National Housing Bank, own the remaining 49% of the CERSAI.

CERSAI 2.0

• Clear your browser history before using CERSAI 2.0, the new version of the website.
• Use the URL https://cersai.org.in/CERSAI/home.prg  and type it into the window's address bar.
• In the CERSAI 2.0 URL, omit the 'www'.
• If there is an existing saved CERSAI URL in the bookmark, remove it.
• Do not use search engines to find the CERSAI website.

CERSAI - Key Functions

CERSAI's tasks and activities are primarily focused on banks, housing finance companies (HFCs), and non-banking financing companies (NBFCs). The central registry is responsible for the filing of security interests in immovable, moveable, and intangible properties by lenders, among other things. Simply defined, the CERSAI login is an online database that contains all of India's mortgaged properties. The full form of CERSAI is the Central Registry of Securitization Asset Reconstruction and Security Interest of India.

When taking out a loan, the borrower must pay a minor fee known as the CERSAI fee. According to CERSAI, if a borrower obtains a loan of more than 5 lakhs, he will be charged Rs. 100 plus service tax, while loans of less than 5 lakhs will be charged Rs. 50 plus service tax.

Since 2016, the CERSAI has also operated and maintained a Central KYC Record Registry (CKYCRR - CKYC CERSAI) to support RBI, SEBI, IRDAI, and PFRDA reporting organisations.

CERSAI holds all of the data for all security interests created for scheduled commercial banks since January 22, 2016. It has been maintaining the data for all other entities registered with it since July 1, 2016. CERSAI began registering data on security interests in under-construction properties in June 2017. (The CERSAI portal has all the information and is easy to use).

Main Objectives of CERSAI

• To combat suspicious and fraudulent activities, the main objective of establishing CERSAI is to maintain a centralized registry of fair and equitable mortgages. 
• The CERSAI registration form contains all relevant information about mortgages or loans of goods or properties. In addition, it also contains all the relevant information about the bank or lender that approved the real estate loan, as well as information about the borrower. 
•  Allows banks and financial institutions to record any transaction related to the reconstruction and securitization of assets. 
•  In 2012, CERSAI expanded its scope to include the registration of any security interest created through factoring or the assignment of accounts receivable. 

 Recently, CERSAI’s objectives have been further expanded to include the registration of all types of mortgage loans that exist in India, as well as the registration of any collateral for non-tangible assets, such as accounting debts. According to the directive issued by the government, all lenders (banks, financial institutions, etc.) must register with CERSAI all information about the concrete guarantees that have been created. The registration must be completed within 30 days of the realization of the security interest.

CERSAI Registration Process

CERSAI registration procedure is fairly simple and can be completed by following a few steps. 

• Go to the official CERSAI website - https://www.cersai.org.in/CERSAI/home.prg

            Entity Registration is in the main header bar.

• The online registration form has to be filled out next. You will find the title 'Entity Registration' on the main selection header.
• To be able to complete the process, make sure you have an electronic signature or Central KYC Record Registry (CKYCRR). (This ensures timely work and is also safe during the pandemic era.)
• Now fill out the form and enter the information asked for.
• Print all the forms, cross-check info and get it signed by the authorized signatory.
• Then these forms, along with the documents mentioned have to be sent to the CERSAI office.

CERSAI Registration Fee

CERSAI registration charges are minimal. CERSAI charges meaning that it is imposed for the registration of security interest. The charges range between Rs 50 to Rs 100, depending on the loan amount granted against the property.

CERSAI Charges on Home Loan

‘Memorandum of Deposit of the Deed Fee’ is what the CERSAI charges on home loans are referred to. One important thing to be kept in mind is that this sum has to be paid to CERSAI whether a bank approves or rejects your loan enquiries. The CERSAI charge depends on various factors such as the size of the property, age of property etc.

What is a CERSAI Search?

CERSAI search report is accessible to all to provide a corruption and fraudulent free registration system. CERSAI registry platform can be accessed by any bank, financial institution or individual - but a certain amount has to be paid. By doing so, the lender can obtain information about the property to ensure that it has no previous collateral that may have been created by different lenders in the past. Usually, this is done before the loan to the borrower is approved. It is important for potential home/property buyers to verify that the property you are interested in purchasing does not have any responsibilities or loans that may be created by other lenders or previous owners. 

How Does the CERSAI Database Updates Happen?

‘Registration of Charges’ is a process that compulsorily happens when - a loan is given out by any bank to an individual for a pledged security against a property. The information about the transaction has to be given to the CERSAI database. It acts as a public database for the encumbrance of the property and its registration charges.

The banks are to send out this data within 30 days of the above-said transaction. If the bank fails to do so, monetary penalties are then charged to the bank.

CERSAI has been a great initiative to provide a fraudulent free system of updates on the mortgage of properties. The information remains secure and is also a safe way of making transactions of immovable, moveable, and tangible properties. Property buyers, while legalising their transactions, may have come across CERSAI, and the above article aims to offer the relevant information.

What is CERSAI in banking?

The Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI), plays a vital role in the banking sector. If you want to understand the CERSAI meaning, you should know that CERSAI is a central repository of information related to security interests created over the movable and immovable properties. The CERSAI asset based search portal provides detailed information on the security interest created over the assets of individuals, firms, and corporations. It helps banks, financial institutions, and other stakeholders to take informed decisions regarding the grant of loan or security. 

What is the CERSAI Act?

The Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI) act was established in the year 2006. 

• Preventing frauds and defaults: The CERSAI act provides for the central registration of security interests created on the assets financed by banks and financial institutions. The act is aimed at improving the transparency of the securitization and asset reconstruction market and to prevent fraud and defaults in these transactions.
• Is CERSAI registration mandatory?: The CERSAI act is applicable to all banks and financial institutions and it is mandatory for them to register all their security interests with the central registry. The act provides for the creation of a central database of all security interests created by banks and financial institutions, which makes CERSAI applicability easier for the authorities to track and monitor the securitization and asset reconstruction market.
• Fines and penalties: The CERSAI act also provides for strict penalties for non-compliance with the provisions of the act. Any individual or firm that fails to comply with the CERSAI rules may be fined or even face imprisonment, as per the provisions of the act.

Let's take a look at the key steps to perform an asset-based search on the CERSAI portal:

• Step 1: Visit the CERSAI website (https://cersai.org.in/)
• Step 2: Click on the “Asset Based Search” tab on the homepage
• Step 3: Fill in the required details such as PAN number, name of the person, type of asset, and asset number
• Step 4: Review the search results and verify the CERSAI details for accuracy
• Step 5: Take a printout or save a copy of the search results for future reference

It's that simple! In just a few steps, you'll have access to detailed information on the security interest created over the assets of individuals, firms, or corporations. By performing an asset-based search on the CERSAI portal, you can take informed decisions regarding the grant of loan or security.

While CERSAI is a vital tool for the banking sector, it is also mandatory for individuals and firms to register their assets on the portal within the specified CERSAI registration time limit. This is where NoBroker's real estate services come in handy. Our team of experts can help you navigate the complicated world of CERSAI registration and ensure that your assets are registered within the specified time limit.

Registering DSC on CERSAI – It’s time to get “Digital”!

The Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI) has made it mandatory for individuals and firms to register their assets on the portal. One of the key requirements for CERSAI registration is a Digital Signature Certificate (DSC). In this blog, we'll take a closer look at how to register DSC on CERSAI.

A Digital Signature Certificate (DSC) is an electronic security feature that authenticates the identity of the individual or firm. It is used to secure online transactions and is mandatory for CERSAI registration. Let's take a look at the key steps to register DSC on CERSAI:

• Get your DSC from a licensed certifying authority. There are several authorized certifying authorities in India that issue DSCs, including TCS, Sify, and MTNL.
• Once you have your DSC, log in to the CERSAI portal using your username and password.
• Go to the “DSC” tab on the homepage and click on “register DSC”.
• Upload the necessary documents along with your DSC. These documents include proof of identity, proof of address, and a certificate of incorporation (for firms).
• After uploading the documents, click on “submit”. Your DSC registration will be processed within a few working days.

It is important to note that the DSC should be registered under the name of the authorized signatory of the individual or firm. Moreover, the DSC should be valid for at least one year from the date of registration on CERSAI.

registering your DSC on CERSAI is a simple and straightforward process. The portal is user-friendly and the steps to register DSC are clearly explained. With the help of NoBroker, you can easily navigate the CERSAI portal and make the most of its benefits. By registering your assets on CERSAI, you can ensure that your assets are secure and protected. Are you looking for a home and want help with the legalities that arise with it? NoBroker is here to help you and offer you the best service. Click on the link to get the assistance you need.

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