Central Registry, a long awaited financial sector demand fulfilled with RBI notification and govt gazette notification in pursuant to the announcement made by the Finance Minister in the budget speech for 2011-12, Government of India, Ministry of Finance.
The Reserve Bank of India (RBI) in a notification on 19 May 2011 announced the operationalisation of a central registry that will have details of all properties against which loans have been taken.
With existence of central registry, it would be virtually impossible for a borrower to raise loans twice against the same property or raise loans using forged documents.
In the past, there have been instances where borrowers have forged the title deed and borrowed money from multiple banks by giving duplicate documents (title deed) as security for home loan. As a result, when the borrower defaults on the loan, many banks would make claim for the same house.
Towards this end-The Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI)-a government company licensed under the Companies Act.1956, has been incorporated to operate and maintain the Central Registry under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act).
Initially transactions relating to securitisation and reconstruction of financial assets and those relating to mortgage by deposit of title deeds to secure any loan or advances granted by banks and financial institutions, as defined under the SARFAESI Act, are to be registered in the Central Registry. The records maintained by the Central Registry will be available for search by any lender or any other person desirous of dealing with the property.
RBI said that the records maintained by the Central Registry will be available for search by any lender or any other person desirous of dealing with the property. Availability of such records would prevent frauds involving multiple lending against the security of same property.
Availability of such records would prevent frauds involving multiple lending against the security of same property as well as fraudulent sale of property without disclosing the security interest over such property, the RBI said in a statement.
RV Verma, chairman and managing director, National Housing Bank, has been given additional charge as the registrar of the Central Registry for three months, and he will also be the managing director and CEO of CERSAI.
As per Govt notification Central Registry established at Indian Banks’ Association, Delhi Local Chapter C/O Punjab National Bank, Rajendra Bhavan, Rajendra Place, New Delhi 110008
The Reserve Bank of India (RBI) in a notification on 19 May 2011 announced the operationalisation of a central registry that will have details of all properties against which loans have been taken.
With existence of central registry, it would be virtually impossible for a borrower to raise loans twice against the same property or raise loans using forged documents.
In the past, there have been instances where borrowers have forged the title deed and borrowed money from multiple banks by giving duplicate documents (title deed) as security for home loan. As a result, when the borrower defaults on the loan, many banks would make claim for the same house.
Towards this end-The Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI)-a government company licensed under the Companies Act.1956, has been incorporated to operate and maintain the Central Registry under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act).
Initially transactions relating to securitisation and reconstruction of financial assets and those relating to mortgage by deposit of title deeds to secure any loan or advances granted by banks and financial institutions, as defined under the SARFAESI Act, are to be registered in the Central Registry. The records maintained by the Central Registry will be available for search by any lender or any other person desirous of dealing with the property.
RBI said that the records maintained by the Central Registry will be available for search by any lender or any other person desirous of dealing with the property. Availability of such records would prevent frauds involving multiple lending against the security of same property.
Availability of such records would prevent frauds involving multiple lending against the security of same property as well as fraudulent sale of property without disclosing the security interest over such property, the RBI said in a statement.
RV Verma, chairman and managing director, National Housing Bank, has been given additional charge as the registrar of the Central Registry for three months, and he will also be the managing director and CEO of CERSAI.
As per Govt notification Central Registry established at Indian Banks’ Association, Delhi Local Chapter C/O Punjab National Bank, Rajendra Bhavan, Rajendra Place, New Delhi 110008
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