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    Question

    Which of the following are not TRUE about CERSAI?

    1.    CERSAI’s full form is Central Registry of Securitization Asset Reconstruction and Security Interest of India 2.    CERSAI forms an online database to store all the information about mortgages and loans for properties (movable, immovable and intangible), that are taken from banks. 3.    CERSAI’s objectives have been further expanded to include the registration of all types of mortgage loans that exist in India, as well as the registration of any collateral for non-tangible assets, such as accounting debts
    A 1 and 2 Correct Answer Incorrect Answer
    B Only 3 is incorrect Correct Answer Incorrect Answer
    C 1 is incorrect Correct Answer Incorrect Answer
    D All are correct Correct Answer Incorrect Answer
    E None are correct Correct Answer Incorrect Answer

    Solution

    The Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) was established, under Section 20 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). It is licensed under Section 25 of the Companies Act, 1956. The government, in 2011, set up this central registry to track online data pertaining to lending transactions against equitable mortgages in India, with an aim to curb the rising number of property-related frauds. While the central government, so far, holds a majority stake in the entity, the CERSAI, in March 2021, said that the Reserve Bank of India (RBI) may pick up the government’s 51% stake in the central registry, since all its functions are related to banking activities. The remaining 49% stake in the CERSAI is held by state-run lenders, including State Bank of India, Punjab National Bank and Bank of Baroda, along with the National Housing Bank. Essentially, all of CERSAI’s functions and activities are related to banks, housing finance companies (HFCs) and non-banking finance companies (NBFCs). The central registry, among other things, deals with the filing of security interest of immovable, movable and intangible properties by lenders. Simply put, the CERSAI login is an online database of all the properties mortgaged with banks in India.

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