What changed
Government established the Central Registry (CERSAI) under SARFAESI Act, operational from March 31, 2011. Initially, securitization transactions and mortgages by deposit of title deeds must be registered. Banks must file charge particulars within 30 days under Section 23 of SARFAESI Act.
What it means for you
Co-operative banks must now register all security interests on immovable property with CERSAI to prevent frauds like multiple lending on same property. This adds a compliance step but enhances transparency and reduces credit risk. Non-compliance could lead to legal issues under SARFAESI Act.
What you must do
- Register all new security interests (mortgages by deposit of title deeds, securitization) with CERSAI within 30 days of creation.
- Ensure existing loans with such security interests are also registered as per rules.
- Train staff on CERSAI registration procedures and timelines.
- Acknowledge receipt of this circular to your regional RBI office.
Who it affects
State Co-operative Banks (StCBs), Central Co-operative Banks (DCCBs), All co-operative banks granting loans against immovable property
What is the deadline for registering a security interest with CERSAI?
Under Section 23 of SARFAESI Act, particulars must be filed within 30 days from the date of creation of the security interest.
Does this apply to all types of loans?
Initially, it applies to securitization transactions and mortgages by deposit of title deeds securing loans or advances from banks and financial institutions.