What is the Full Form of CERSAI?

The full form of CERSAI is Central Registry of Securitisation Asset Reconstruction and Security Interest of India. The Government of India established it under Section 8 of the Companies Act 2013, with the goal of detecting any fraudulent behaviour in cases where any immovable property is used as collateral to obtain a loan. This record prevents and discourages fraud, such as borrowing from multiple banks against the same security interest or equitable mortgage. A borrower obtains funds from banks or lenders with the understanding that his property or immovable asset will serve as security for the loan.

Who Owns CERSAI?

The Government of India, The National Housing Bank, and public sector banks are the key partners in CERSAI, which is headquartered in New Delhi. With 51 percent of the total shares in this corporation, the Government of India is the dominant stakeholder. Prior to the founding of the company, the borrower and lender simply shared the equitable mortgage encumbrance detail.

How Does CERSAI Work?

CERSAI is a web-based system that enables lenders to register their security interests in real time. When a security interest is registered, it becomes a public record that anyone can access. This guarantees that the loan process is completely transparent and that all parties are aware of any security interests recorded against any particular asset.

CERSAI also plays an important role in debt recovery in the event of borrower failure. Lenders can begin the recovery process by submitting an application to the Debt Recovery Tribunal (DRT) or the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act of 2002. The DRT or SARFAESI then obtains a search report from CERSAI in order to discover whether any security interests have been lodged against the assets in question.

Also Read: Full form of PIO

Hope now you know all about the full form of CERSAI. Visit the General Knowledge page to discover more full forms like these.