Home › Circulars › RBI/2013-14/369

NBFCs Must Register Equitable Mortgages with CERSAI

Current · Source: Reserve Bank of India · RBI/2013-14/369 · issued 12 Nov 2013 · ~2 min read
Quick answerRBI mandates all NBFCs to file records of equitable mortgages created on or after March 31, 2011, with CERSAI. This ensures public availability of security interest details, helping prevent fraud and multiple financing against the same property.
The rule, in the simplest words
How it plays out — a real example

A gold‑loan officer named Ravi in Indore receives a loan application from a customer who offers a gold‑plated house as collateral. Ravi checks CERSAI to see if the property already has a registered mortgage. Finding none, he files the new equitable mortgage immediately, ensuring the loan is protected and the property is not used for another loan.

What changed

RBI advised all NBFCs to file and register records of equitable mortgages created in their favor on or after March 31, 2011, with the Central Registry (CERSAI). Previously, only institutions notified under SARFAESI Act were required to register; now NBFCs must also register such mortgages as and when created.

What it means for you

NBFCs must now proactively register equitable mortgages with CERSAI to make security interests publicly searchable. This reduces the risk of fraud and multiple financing on the same property, enhancing transparency in lending. Non-compliance could expose NBFCs to legal and operational risks.

What you must do

Who it affects

All NBFCs registered with RBI, Banks and financial institutions not notified under SARFAESI Act, Borrowers and property owners

❓ Common questions

What is an equitable mortgage?

An equitable mortgage is created by depositing title deeds of a property with a lender as security for a loan, without formal registration. RBI now requires NBFCs to register such mortgages with CERSAI.

What happens if an NBFC does not register with CERSAI?

Failure to register may result in the security interest not being publicly available, increasing fraud risk. While the circular does not specify penalties, non-compliance could invite regulatory action under RBI Act.

Does this apply to mortgages created before March 31, 2011?

No, the circular only applies to equitable mortgages created on or after March 31, 2011. Mortgages before that date are not required to be filed.

📜 Read the original circular — full text as issued by RBI
RBI/2013-14/369 DNBS.(PD).CC.No.360 /03.10.001/2013-14 November 12, 2013 All NBFCs Dear Sirs, Filing of records of equitable mortgages with the Central Registry The Central Government in exercise of the powers conferred under Section 21 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, has notified on 31st March, 2011 the establishment of the Central Registry at New Delhi and entrusted the operations and administration of the Central Registry and the maintenance of the Central Register to a Government Company licensed under Section 25 of the Companies Act, 1956, namely the Central Registry of Securitisation Asset Reconstruction and the Security Interest of India. (CERSAI) 2. Although the institutions notified under the SARFAESI Act have to mandatorily register with CERSAI, the records of the mortgages created in their favour by deposit of title deeds, those not notified under SARFAESI Act are not debarred from filing the records with CERSAI. In the absence of the records of all the equitable mortgages obtained even by non-SARFAESI notified banks / financial institutions (including NBFCs) with the CERSAI, the details of the security interest created in favour of these banks / institutions will not be available on a public domain for search by citizens / other banks / FIs as a result of which the potential fraud / multiple financing against the same property may not be fully prevented. 3. All NBFCs are advised to file and register the records of all equitable mortgages created in their favour on or after 31st March 2011 with the Central Registry and they shall also register the records with the Central Registry as and when equitable mortgages are created in their favour. 4. These instructions are being issued in exercise of powers vested in the Bank under Section 45L of the RBI Act, 1934. Yours faithfully, (N.S.Vishwanathan) Principal Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/369 · issued 12 Nov 2013. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
Most relevant forCompliance TeamLegal / Documentation & Recovery-LegalLoan Operations / CPC / DisbursementRM — Loans (Assets)Credit Manager / UnderwritingInternal Audit
🛠 Banker’s toolkit — checklists & reply templates →
Related circulars · NBFC Regulation
NBFCs: PMLA Compliance & Transaction Monitoring UpdateAnnual NBS-7 Return Mandate for NBFC-ND-SIMaster Circular: Exemptions from RBI Act, 1934 for NBFCsMaster Circular: NBFC/RNBC Liquid Asset Returns & MaintenanceNBFC Auditor Report Directions 1998: Master Circular
Browse all departments →
Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All NBFCs registered with RBI, Banks and financial institutions not notified under SARFAESI Act, Borrowers and property owners), your first concrete step on “NBFCs Must Register Equitable Mortgages with CERSAI” is: “File all existing equitable mortgages created on or after March 31, 2011, with CERSAI immediately.” (RBI issued this 12 Nov 2013).

  1. Circular: RBI/2013-14/369 -- NBFCs Must Register Equitable Mortgages with CERSAI
  2. Issued: 12 Nov 2013
  3. Action required: File all existing equitable mortgages created on or after March 31, 2011, with CERSAI immediately.
  4. Action required: Set up a process to register new equitable mortgages with CERSAI at the time of creation.
  5. Action required: Verify that your loan documentation includes CERSAI registration steps for equitable mortgages.
  6. Action required: Train staff on CERSAI filing procedures to ensure timely compliance.
  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.

💬 Banker Discussion

Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.

Loading comments…
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8571&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.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
—