CERSAI to expand the scope of cover

Banks and lending institutions may soon be required to file with a central registry all information on loans sanctioned for gold jewellery, plant and machinery, corporate brands and logos. A legal working group set up by CERSAI and International Finance Corporation, under the chairmanship of M. R. Umarji, Chief Legal Advisor, Indian Banks’ Association, has recommended that the scope of CERSAI be expanded to cover movable assets, tangibles and intangibles. CERSAI (Central Registry of Securitisation Asset Reconstruction and Security Interest of India), a state-owned entity, currently operates a central registry with which information on all equitable mortgages is filed by lending institutions.

This legal working group has also recommended to the Finance Ministry that the scope of CERSAI be expanded to cover all kinds of mortgage transactions. Any move to enhance the scope of CERSAI will enhance the confidence among lenders and result in efficient pricing of loans for such activities, including movable assets and intangibles such as corporate logos, R. V. Verma, CMD, National Housing Bank, said