Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q102: Under the CERSAI (Central Registry of Securitisation Asset Reconstruction and Security Interest) framework, which of the following statements regarding registration charges and purpose is INCORRECT?

A
CERSAI registration is mandatory for security interests created on equitable mortgages to prevent dual financing.
B
The primary objective is to maintain a central registry of mortgages to prevent fraud where the same property is mortgaged to multiple banks.
C
For loan amounts above Rupees 5 lakh, the CERSAI registration fee is typically Rupees 500 plus GST.
D
CERSAI was established under the SARFAESI Act, 2002.
✅ Correct Answer: C
Option C is the incorrect statement.
The standard CERSAI registration fee prescribed by the Central Government is Rupees 100 plus GST for loans above Rupees 5 lakh, and Rupees 50 plus GST for loans up to Rupees 5 lakh.
It is not Rupees 500.
CERSAI (Central Registry of Securitisation Asset Reconstruction and Security Interest of India) was set up to check mortgage frauds, specifically instances where the same property is mortgaged to multiple lenders.
It is a government company licensed under Section 8 of the Companies Act, 2013, with majority shareholding by the Central Government, Public Sector Banks, and NHB.
Registration of security interest (mortgage) with CERSAI is mandatory for banks within 30 days of creation.