On December 27, 2018, the Reserve Bank of India (“RBI”) issued a circular (“Circular”) in connection with filing of security interest relating to immovable (other than equitable mortgage), movable and intangible assets with the Central Registry of Securitisation Asset Reconstruction and Security Interest (“CERSAI”).  

While CERSAI had started registration of the data regarding particulars of creation, modification or satisfaction of security interest in:

a) immovable property by mortgage other than mortgage by deposit of title deeds;

b) hypothecation of plant and machinery, stocks, debts including book debts or receivables, whether existing or future;

c) intangible assets, being know how, patent, copyright, trademark, licence, franchise or any other business or commercial right of similar nature; and

d) any ‘under construction’ residential or commercial or a part thereof by an agreement or instrument other than mortgage. 

However, it was observed that the extent of registration on the CERSAI portal is very low, both for current and subsisting records. 

Consequently, RBI has issued the Circular advising banks/ FIs to complete filing the charges pertaining to subsisting transactions by March 31, 2019. Banks/ FIs are also advised to file the current charges relating to all transactions with CERSAI on an ongoing basis.