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Check out what CERSAI KYC is, its importance, and its key components. Learn more about the steps involved and their impact on home loans and property verification.
CERSAI, which stands for the Central Registry of Securitisation Asset Reconstruction and Security Interest of India, oversees the CKYC processes. It also manages the centralised KYC system, which stores all individual data, including personal details, addresses, and identity proofs, in one place. As of December 2023, the Central KYC Record Registry (CKYCR) held over 82 crore KYC records for individuals and 1 crore for legal entities. This centralised database simplifies the KYC process for both individuals and businesses.
CERSAI KYC eliminates the need for repeated KYC procedures, improving efficiency and reducing the risk of fraud across financial institutions.
Licensed under Section 8 of the Companies Act, 2013, this company operates under the Government of India. Financial institutions in India need to update the KYC of their customers to maintain accurate financial records. CERSAI is responsible for collecting and maintaining this data in the CKYC central database.
This process is essential for identifying financial terrorism and ensuring compliance with anti-money laundering regulations. According to the Reserve Bank of India, individuals who have completed the CKYC process do not need to undergo KYC again. All documents are verified and facilitate applications for financial products or services.
The CERSAI KYC helps banks and NBFCs mitigate risk by assessing borrowers’ repayment capacity. It also assists in recovering loan amounts in cases of default.
CERSAI is a key entity that regulates its operations through banks, NBFCs, and housing finance companies. The CERSAI KYC database maintains records of all mortgaged properties across India. Operating since 2016, its key responsibilities include:
Preventing Frauds
CERSAI’s primary role is to prevent financial fraud involving banks and NBFCs. It helps stop fraudulent activities, such as taking multiple loans against the same property.
Maintaining Transparency
This organisation and its database ensure complete transparency in records. These records cover security interests, borrowers, stakeholders, and financial institutions that benefit from them.
Ensuring Legal Compliance
CERSAI KYC helps banks and NBFCs comply with legal regulations. It ensures adherence to guidelines such as the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act.
This law allows financial institutions to recover non-performing assets (NPAs) by selling assets without court intervention.
Recording Transactions Related to Assets
CERSAI manages records of transactions related to the reconstruction or securitisation of assets by banks. It ensures that these records remain accurate and accessible for verification.
Record Management
The CERSAI KYC form contains all relevant details regarding loans and goods. It includes information about banks, approved real estate loans, and borrower details.
The CERSAI KYC process involves registration, documentation, and compliance for banks and lenders. The key components are as follows.
Registration
Provide your name, address, email, and details of the institution to complete the process. The information submitted has to be accurate for successful registration.
Verification
Verify your details using the registered email or contact number. This process ensures the authenticity of your registration.
Document Submission and Verification
You need to submit the required documents, such as identity and address proofs, based on CERSAI’s request. CERSAI will authenticate and approve the registration after verifying the documents.
Timely Updates
Keeping information updated is essential. Any required changes have to be submitted in a timely manner as per CERSAI regulations.
Audits
Maintaining transaction records and conducting regular audits is necessary to ensure transparency. These records have to be readily available for regulatory review.
The steps are outlined below.
Visit the official website of a CKYC-registered bank or financial institution, or visit a branch in person
Download the CERSAI KYC form and submit it with documents at a bank branch or fill in the registration form online
Provide the required documents, such as address proof, PAN card, and Aadhaar card, for verification
The financial institution will then review and verify the submitted documents
After verification, you will receive a 14-digit CKYC number
CERSAI is essential for home loans as it prevents instances of double financing and promotes transparency in property transactions. It helps lenders verify legal ownership, conduct due diligence, and streamline legal processes. Some key impacts of CERSAI on home loans are:
CERSAI supports banks and NBFCs in ensuring transparency in home loan transactions by verifying the legal claim or registration status of the property
Lenders can check through CERSAI if the property has been financed multiple times or pledged as collateral for a home loan
Lenders can check CERSAI records before approving a home loan, ensuring due diligence, reducing fraud, and supporting secure transactions
CERSAI streamlines legal processes for home loans and property transactions by standardising documents and enabling banks to enforce terms in case of borrower default
CERSAI plays a key role in home loans by ensuring the accurate recording and verification of collateral, enhancing transparency and reducing the risk of fraud. This impacts your experience in several ways, including:
The registry and lending process gain credibility as collateral is documented and verified by lenders
You, as a borrower, do not need to provide your KYC documents every time you make a transaction related to a loan or property
To keep your documents updated with the banks and NBFCs you are enrolled with, you have to update them when required
When investing in financial instruments, you can use your 14-digit CKYC number; you can invest in mutual funds, the stock market, or an insurance policy
CERSAI 2.0 is an enhanced version of the basic CERSAI KYC platform. It aims to improve transparency, prevent fraudulent transactions, and facilitate access to information. It also provides a central database of security interests and properties.
To reset your CERSAI 2.0 password, you need to visit the official CERSAI website. On the login page, click on the forgot password link and follow the instructions provided.
To check your CERSAI details, you have to log in to the official CERSAI website using your credentials. You can also dial the toll-free number 7799022129 to obtain your CKYC number.
For a loan of more than ₹5 Lakhs, the applicable charge is ₹100. For a loan below ₹5 Lakhs, a fee of ₹50 applies.
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