RBI asks NBFCs to register mortgages with Central Registry
Mumbai: The Reserve Bank Tuesday asked non- banking financial companies (NBFCs) to register the records of all equitable mortgages created in their favour with the Central Registry.
The central bank has asked them to register all mortgages created in their favour on or after 31st March 2011 to check the fraud related to property.
They shall also register the records with the Central Registry as and when equitable mortgages are created in their favour, RBI said in a notification.
Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) has been created by the government keep records of all mortgages deal.
Under the provisions of the SARFAESI Act, banks and financial institutions are required to file the details of all mortgages created in their favour by way of deposit of title deeds on the portal of the Central Registry (CERSAI) in the prescribed format.
Although the institutions notified under the SARFAESI Act have to mandatorily register with CERSAI, the records of the mortgages created in their favour by deposit of title deeds, those not notified under SARFAESI Act are not debarred from filing the records with CERSAI, it said.
In the absence of the records of all the equitable mortgages obtained even by non-SARFAESI notified banks or financial institutions (including NBFCs) with the CERSAI, it said, the potential fraud or multiple financing against the same property may not be fully prevented.