Monday, April 25, 2011

Central Registry: an effective measure to check home loan frauds

To discard the fault practices prevailing in real estate sector the Reserve Bank of India has introduced The Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) that will contain database of the mortgaged properties to the lenders.

The records will be made available on the website and a person can access the home loan details on the mortgaged property by just paying a fee of Rs. 50 electronically. Central Registry is also expected to help home loan market as the lender will be sure about the authenticity of the property offered as security.

"Availability of such records would prevent frauds involving multiple lending against the security of same property as well as fraudulent sale of property without disclosing the security interest over such property," said RBI.

The facility is still in its initial stages as it was made operational from March 31 and the records will be made available to both lenders as well as to any other person.

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