Question

    CERSAI was formed to discourage and prevent the practice

    of taking out various loans from several banks using the same asset or property. What does the ‘S’ in CERSAI stand for?  
    A Securitization Correct Answer Incorrect Answer
    B Systematic Correct Answer Incorrect Answer
    C System Correct Answer Incorrect Answer
    D Sustainable Correct Answer Incorrect Answer
    E Similar Correct Answer Incorrect Answer

    Solution

    CERSAI or Central Registry of Securitisation Asset Reconstruction and Security Interest of India, has been established as a company under section 8 of the Companies Act, 2013 by the Government of India. CERSAI was formed to identify and check fraudulent activity in lending transactions against equitable mortgages. In other words, the CRESAI was established to discourage and prevent the practice of taking out various loans from several banks using the same asset or property.  

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