What is CERSAI? A Complete Detailed Guide on CERSAI

Established by the government, the CERSAI had been launched to check any circumstance of fraud when someone uses the collateral of properties to extract loans. This makes it necessary to understand CERSAI and its effect on the actions of the borrowers of home loans in India. 

Learn why CERSAI was founded, how to access the CERSAI login page and other important information.

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What is CERSAI? 

Under Section 20 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) was established. A government-owned company, CERSAI operates a registry which works with filing intangible and movable properties, security interest of immovable, and assignment of receivables by financial institutions. 

What is the Role of CERSAI?

In 2011, the CERSAI was established to track the data found online related to the transaction made against mortgages in India to deal with the rise of property fraud in the country. The CERSAI also has the higher responsibility of maintaining and operating a KYC registry under the Maintenance of Records, PML Rules, 2005. CERSAI is an archive of the security interest of intangible, movable, immovable assignments and properties of receivables. 

CERSAI also lets you access any records related to attached or encumbered properties. The registry would cater to reporting the entities of the primary regulators of the financial industry, such as the PFRDA, the IRDA, the SEBI, and the RBI. Moreover, the Government of India owns the majority stake in CERSAI. And the remaining stakes are owned by state-run lenders such as Bank of Baroda, State Bank of India, Punjab National Bank, etc. 

Key Functions of CERSAI

The primary activities and functions of CERSAI relate to Housing Finance Companies (HFCs), banks, and Non-Banking Finance Companies (NBFCs). The central registry works with filing the security interest of intangible, movable, and immovable properties by the lenders. In simple words, CERSAI login provides access to the online database of the physical properties mortgaged with all the banks in the country. 

Since 2016, the CERSAI has also been maintaining and operating the Central PYC Record Registry (CKYCRR) to serve the four financial reporting entities of the PFRDA, the IRDAI, the SEBI, and the RBI. From 2017, under construction properties, the CERSAI has also begun data registration on security interest. 

How to Login to CERSAI?

It is mandatory for both the representatives of financial or banking institutions and the general public to log in to CERSAI. For the login process, follow the steps provided below: 

Step 1: Reach the official website of CERSAI.

Step 2: Click on the login button provided on the homepage of CERSAI.

Step 3: Now, a new window of CERSAI login will open.

Step 4: For a registered user, you must enter your CERSAI login ID and password, along with the captcha code. 

Step 5: Upon verifying the code, you must click on the CERSAI login button. 

CERSAI Registration Fee

CERSAI requires registration of security interest fee, which depends on the loan amount granted against any property. 

Generally, the charge can vary anywhere between Rs. 50 to Rs. 100. However, this amount can also differ. 

Updation of the CERSAI Database

Against a property put as security, the bank would provide you with a loan. For this, it would be necessary to submit the required transaction details to the database of CERSAI through the process of registration of charges. The registration of charges has the role of acting as the public database of encumbrances on the properties. It is compulsory to provide the information within 30 days to CERSAI. 

Conclusion 

CERSAI is related to home loans since it has its specific charge on the home loan request. This charge must be paid irrespective of whether your request for a home loan is rejected or approved by the bank. However, you must have your CERSAI login, whether an individual or a financial institution. 

FAQs

Q1. Is TDS applicable for the amount deposited in CERSAI?

Yes, you will have to make a TDS payment online as TDS is applicable for the amount deposited in CERSAI.

Q2. What is the rate of TDS?

The rate of TDS is 2 % as per the norms with effect from 01 April 2021.