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Central Electronic Registry (CERSAI) Setup Under SARFAESI Act

Current · Source: Reserve Bank of India · RBI/2010-2011/545 · issued 25 May 2011 · ~2 min read
Quick answerRBI notified SC/RCs about CERSAI, a central registry to prevent frauds involving multiple loans on same property. Initially, securitization/reconstruction transactions and mortgage by deposit of title deeds must be registered. Lenders can search records to avoid duplicate lending.
The rule, in the simplest words
How it plays out — a real example

A credit & lending officer in Indore is processing a home loan for a customer. Before approving, she logs into CERSAI and searches the property address. She finds no existing security interest, so she confidently sanctions the loan, knowing the property is not already pledged elsewhere.

What changed

Government established CERSAI as a Section 25 company to operate the Central Registry under SARFAESI Act. Initially, transactions related to securitization, reconstruction, and mortgage by deposit of title deeds must be registered. The registry allows lenders to search records to prevent frauds involving multiple lending on same property.

What it means for you

Banks and financial institutions must register mortgage by deposit of title deeds and securitization/reconstruction transactions with CERSAI. This reduces risk of fraud from multiple loans against same property. Lenders can now verify security interest before sanctioning loans, improving due diligence.

What you must do

Who it affects

All registered Securitisation Companies and Reconstruction Companies, Banks and financial institutions granting loans against property, Lenders dealing with mortgage by deposit of title deeds

❓ Common questions

What is the purpose of CERSAI?

CERSAI is a central registry to prevent frauds in loan cases involving multiple lending from different banks on the same immovable property. It records security interests and allows lenders to search before sanctioning loans.

Which transactions must be registered initially?

Initially, transactions relating to securitization and reconstruction of financial assets, and mortgage by deposit of title deeds to secure loans from banks and financial institutions must be registered.

Who can search the CERSAI records?

Any lender or any other person desirous of dealing with the property can search the records maintained by the Central Registry.

📜 Read the original circular — full text as issued by RBI
RBI/2010-2011/545 DNBS (PD) CC. No. 24/SCRC/26.03.001/2010-2011 May 25, 2011 All registered Securitisation Companies/Reconstruction Companies Dear Sirs, Setting up of Central Electronic Registry under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 Pursuant to the announcement made by the Finance Minister in the budget speech for 2011-12, Government of India, Ministry of Finance notified the establishment of the Central Registry vide notification F. No. 56/05/2007-BO-II dated March 31, 2011. The objective of setting up of Central Registry is to prevent frauds in loan cases involving multiple lending from different banks on the same immovable property. The Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI), a Government Company licensed under section 25 of the Companies Act 1956 has been incorporated for the purpose of operating and maintaining the Central Registry under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). 2. It may be noted that initially transactions relating to securitization 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. 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. 3. A copy of the Securitisation and Reconstuction of Financial Assets and Enforcement of Security Interest (Central Registry) Rules , 2011 along with a copy of Notification dated March 31, 2011 issued by the Government of India in this regard, is enclosed for perusal and necessary action at your end. Yours faithfully, (Uma Subramaniam) Chief General Manager-in-Charge Encl.: As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-2011/545 · issued 25 May 2011. The plain-English explanation above is BankPulse’s own independent summary.
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Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All registered Securitisation Companies and Reconstruction Companies, Banks and financial institutions granting loans against property, Lenders dealing with mortgage by deposit of title deeds), your first concrete step on “Central Electronic Registry (CERSAI) Setup Under SARFAESI Act” is: “Register all mortgage by deposit of title deeds and securitization/reconstruction transactions with CERSAI as per rules.” (RBI issued this 25 May 2011).

  1. Circular: RBI/2010-2011/545 -- Central Electronic Registry (CERSAI) Setup Under SARFAESI Act
  2. Issued: 25 May 2011
  3. Action required: Register all mortgage by deposit of title deeds and securitization/reconstruction transactions with CERSAI as per rules.
  4. Action required: Ensure compliance with the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Central Registry) Rules, 2011.
  5. Action required: Use CERSAI records to search for existing security interests before sanctioning loans against property.
  6. Action required: Update internal processes to include CERSAI registration as a mandatory step in loan origination.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6435&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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