RBI /2010-11/484
DBOD.Leg. No.BC. 86/09.08.011 /2010-11
April 21, 2011
All Scheduled Commercial Banks/Financial Institutions
(Excluding RRBs)
Dear Sir,
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. 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. This Registry has become operational on March 31,
2011. 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).
- 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. It
may be noted that under the provisions of Section 23 of the SARFAESI Act ,
particulars of any charge creating security interest over property is required
to be filed with the Registry within 30 days from the date of creation.
- 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 in this
regard, is enclosed for necessary action at your end.
Yours faithfully,
(P.R.Ravi Mohan)
Chief General Manager
Encl: As above