New Delhi, India, August 22, 2012—IFC, a member of the World Bank Group, and India’s government-owned central mortgage registry are developing an expanded database of types of collateral that can be used to secure a loan—an initiative that will increase transparency in India’s lending framework while improving access to credit for small businesses.
India’s Central Registry of Securitisation Asset Reconstruction and Security Interest (CERSAI) was established by the Finance Ministry last year as a central electronic directory of immovable assets to prevent fraudulent multiple borrowings against the same property. The registry records information about mortgages used to secure loans across the country—and makes it available to financial institutions, banks and housing finance companies, making lending transparent and more secure.
IFC is advising CERSAI to help it design a business plan and revenue model while expanding the database to cover all types of movable assets—including stocks, inventory, and accounts receivable. Small businesses are more likely to have those types of collateral available to secure a loan.
“The focus of CERSAI thus far has been on traditional mortgages,” said R. V. Verma, Chief Executive Officer and Managing Director of CERSAI. “This is changing with regulation broadening the scope of the registry this year. IFC's experience elsewhere in implementing similar reforms will be valuable as we ramp up operations.”
IFC will help CERSAI develop legal and institutional frameworks in line with international best practices.
"The project will make the centralized collateral registry more effective, increasing transparency and enabling financial institutions to reduce risks,” said Rashad Kaldany, IFC’s Acting Executive Vice President and CEO. “Small businesses and entrepreneurs—especially women who own few fixed assets— will find it easier to obtain the financing they need to grow and thrive.”
IFC has supported the development of centralized collateral registries in several other developing countries—including China, Ghana, Mexico and Vietnam.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
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