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    Question

    CERSAI was established to prevent fraudulent lending

    transactions against equitable mortgages. What does the ‘S’ in CERSAI stand for?
    A Small Correct Answer Incorrect Answer
    B Securitization Correct Answer Incorrect Answer
    C Secured Correct Answer Incorrect Answer
    D Systematic Correct Answer Incorrect Answer
    E System Correct Answer Incorrect Answer

    Solution

    CERSAI stands for Central Registry of Securitisation Asset Reconstruction and Security Interest of India. • It was set up by the Government of India as a Section 8 company under the Companies Act, 2013. • The registry was created to curb frauds in lending, particularly where borrowers attempt to take multiple loans from different banks using the same property as collateral. • By recording details of security interests created by lenders, CERSAI ensures transparency and acts as a deterrent against fraudulent mortgage practices. Thus, the ‘S’ in CERSAI = Securitisation.

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