In the banking and financial sector, the biggest risk while extending loans is mortgage-related fraud and the consequent difficult recovery process. The control measure for this is CERSAI – the Government Registry of Secured Transactions. A study of recent judicial decisions reveals that all courts have consistently adopted the trend of giving priority to banks and financial institutions holding registered security interests under the SARFAESI Act, 2002. It is essential to timely deregister (upon satisfactory loan repayment) in CERSAI to facilitate a proper search.
In today's banking transactions, preserving customer trust and maintaining security is not merely a responsibility, but a mutual ethical obligation. While granting a loan, a bank/financial institution does not merely give money; behind it are attached trust, reputation, and the future...(Read the full article in the August 2026 issue)