In our previous post “CERSAI Rules make mandatory registration of charges of every kind”, we have written about legal obligations of banks and financial institutions to register creation of security interest over an asset with the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI). Effective from August 3, 2020, an upgraded version of Security Interest portal i.e. CERSAI 2.0, has come up with the solutions to technical flaws in the existing portal. The new version introduces some innovative changes such as the offline functionality for adding security interest transactions and no maker-checker concept. In the following writeup we intend to clarify users’ doubts on Link or De Link Digital Signature from the user id, use of class 3 certificate, Condonation entries, batch uploads, how a Bank can tackl unfinished transactions, absence of loan details, etc.
Digital signature certificate:
An entity needs to be registered in CERSAI to access the various functionalities available on the portal. The Entity Registration functionality is accessible from the CERSAI 2.0 portal pre-login.Once registration of entity is successful & approved by CERSAI user admin, username and password for Entity User Administrator will be forwarded to primary contact person‘s e-mail ID who will be considered as ‗User Administrator‘ of that particular entity. The users can have access to functionality of CERSAI with their user id and passowrd along with digital signature. However, the search and reports such as Asset based Search – Debtor based Search – AOR search – Online Reports – MIS Reports – RMS Reports – Batch Reports are allowed to exisiting user without asking for digital signature. Furtehr, the users with of Digital Signature in CERSAI 1.0 can continue to use the same in CERSAI 2.0 also (irrespective of the class of Digital Signature) and once their Digital Signature expires they will have to procure a new Digital Signature of Class – III. Nevertheless, the users who are currently not using any Digital Signature in CERSAI 1.0 will have to procure a Digital Signature of Class – III.
Under earlier version of CERSAI Digital Signature Certificate (DSC) was required only to Checker (one who approves the entry made by the maker) and not required for “Maker”. But in CERSAI 2.0 version, Digital Signature is mandatory to all the users to login. The Digital Signature Certificate of class- III can be obtained by Individual User or Authorized Individual on behalf of Organisation or Company. Users have to procure class III signing digital signature from any of the issuing authority like E-Mudra, Capricon, Sift, Vsign etc. Digital Signature Certificate Class 3 has two categories as Individual User known as Class 3A or Class 3 individual Digital Signature Certificate & Company user known as Class 3B or Class 3 organisation Digital Signature Certificate. As per Information Technology Act and legal status, Class 3A and Class 3B Digital signature certificates are also issued as Class 3A individual Signing Certificate and Class 3B Organisation Combo Digital Signature Certificate.
Batch Upload in new format:
As in the old system ‘Batch upload’ is available in the new system. However, Batch formats have changed. The changes in the batch format are shared by CERSAI with the primary users of the respective entities over mail and the details are also available on CERSAI portal. Batch upload will be available for filing of Security Interest on Immovable, Movable and Intangible Assets and Assignments of Receivables within 30 days. Batch for Satisfaction of security interest, within 30 days, is available for Immovable, Movable and Intangible Assets. Those entities that are enabled for batch upload in CERSAI 1.0 can directly upload the batch in new format. In case unapproved batches remain in the old system such batches will not be migrated to CERSAI 2.0.Entities will have to prepare batches again in new formats for these records and upload the same in CERSAI 2.0 system.
Batch Format Security Interest:
For filing of Security Interest Immovable assets, users have to fill – Si, Immovable Asset, Borrower, asset Owner (If borrower not asset owner), Charge holder, Consortium( If Type of financing is consortium only). For filing of Security Interest Movable Assets, users have to fill – SI, Movable Asset, Borrower, asset Owner (If the borrower is not the asset owner), Charge holder, Consortium( If Type of financing is consortium only). For filing of Security Interest Intangible Assets, users have to fill – SI, Immovable Asset, Borrower, asset Owner (If a borrower is not the asset owner), Charge holder, Consortium( If Type of financing is consortium only). For filing of Attachment Order, users have to fill – SI, Attachment order, Immovable Asset / Movable Asset /Intangible Asset (As the case may be), Borrower, asset Owner (If a borrower is not the asset owner), Charge holder, Consortium (If Type of financing is consortium only)
Batch Format Assignment of Receiveables (AOR):
For Whole Turn Over, users have to fill – AOR, Assigner and debtor details.For Factoring unit, users have to fill – AOR, Assigner, debtor and Invoice details.For Invoice, users have to fill – AOR, Assigner,debtor and Invoioce details.
There were a system like loan1, loan2 etc.facility in Cersai 1.0 but in cersai 2.0 there are no loan details available. Hence, Users are required to put the loan number under security interest details tab in entity identification number field.In case of multiple loans under the same asset, user can select the existing asset and can create another security interest id and can mention the 2nd loan account number along with the first loan account number, already available in the field, under security interest details tab in entity identification number field
The provisions of Data Dictionary, Field level Validation and Master Data available in CERSAI 1.0 is also available in CERSAI 2.0