---
title: "New CERSAI Compliance Alert: Source Of Funds Now Mandatory For SI Filings"
date: 2025-06-11
author: "Shrishail Kittad"
url: https://www.indialaw.in/blog/banking-and-finance/new-cersai-compliance-alert/
---

# New CERSAI Compliance Alert: Source Of Funds Now Mandatory For SI Filings

Posted On - 11 June, 2025 •

By - [Shrishail Kittad](https://www.indialaw.in/people/adv-shrishail-kittad/ "Posts by Shrishail Kittad") and [Aditi Rana](https://www.indialaw.in/author/aditi-rana/ "Posts by Aditi Rana")

[![CERSAI](https://www.indialaw.in/wp-content/uploads/unnamed.png)](https://www.indialaw.in/wp-content/uploads/unnamed.png)

## Introduction

The Central Registry of Securitisation Asset Reconstruction and Security Interest of India ([CERSAI](https://www.cersai.org.in/CERSAI/home.prg)) has notified a new compliance requirement that mandates financial institutions to disclose the source of funds while registering a security interest. The move is intended to enhance regulatory oversight and improve transparency in lending arrangements involving on-lending or refinance structures.

## Background: Role of CERSAI under SARFAESI

CERSAI was established under Section 20 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), to maintain a central registry of charges created over movable, immovable, and intangible assets. As per Section 26D of the SARFAESI Act, the enforcement of security interest under the Act is subject to the prior registration of such interest with CERSAI. Registration helps prevent fraudulent multiple financing of the same asset and ensures legal enforceability in case of borrower default.

## New Fields Introduced in CERSAI Filings

CERSAI has now introduced the following fields which will become mandatory during the registration of a security interest:

**1. Type of Lending:**

Lenders must indicate whether the loan has been made using:

- Own Funds
- On-Lending
- Re-finance

**2. Source of Fund Entity ID:**

In cases of on-lending or refinance, the Entity ID of the original lending institution (e.g., NABARD, NHB, SIDBI) must be disclosed.

**3. Source of Fund Security Interest ID:**

Where refinance or on-lending is secured by a prior charge on a portfolio, the Security Interest ID of the corresponding registration must be furnished.

These fields are to be captured at the time of initial registration and will become mandatory once the functionality is formally rolled out on the CERSAI portal. Updated user manuals and system guidance are expected to be published in due course.

## Compliance Implications for Lenders

The introduction of these fields represents a significant development for banks, non-banking financial companies (NBFCs), housing finance companies, and other lending institutions. Key implications include:

- **Operational Adjustments:** Institutions will need to update their loan origination systems, internal forms, and CERSAI filing mechanisms to incorporate these new data points.
- **Legal Enforceability:** Inaccurate or incomplete registration may impact the enforceability of security interests under [SARFAESI](https://en.wikipedia.org/wiki/Securitisation_and_Reconstruction_of_Financial_Assets_and_Enforcement_of_Security_Interest_Act,_2002), especially in insolvency or asset recovery proceedings.
- **Audit Trail and Supervision:**The requirement to disclose the origination and flow of funds strengthens the audit trail and enhances visibility for supervisory authorities.
- **Upstream Coordination:** Institutions involved in refinance or on-lending arrangements must coordinate with refinancing agencies to obtain accurate CERSAI credentials and linked charge details.

## Action Points for Institutions

- **Conduct internal process audits** to identify transactions involving on-lending or refinance.
- **Update system workflows** and documentation practices in anticipation of the new mandatory fields.
- **Train compliance, credit, and legal teams** on the implications of the change and the revised filing requirements.
- **Monitor notifications** from CERSAI regarding the go-live date and availability of revised manuals.

## Conclusion

This regulatory development will enhance the governance of secured lending. By mandating disclosures on the source of funds, CERSAI aims to bring greater clarity and control over lending chains and fund flows, particularly in multi-layered credit structures. Institutions that prepare proactively will reduce compliance risk and ensure uninterrupted legal enforceability of their secured interests.

For more details, write to us at: [contact@indialaw.in](mailto:contact@indialaw.in)

Disclaimer - This article is intended for general informational purposes and does not constitute legal advice. Readers should seek specific legal counsel in relation to their individual circumstances.

[Download PDF](https://www.indialaw.in/blog/banking-and-finance/new-cersai-compliance-alert//pdf/)

[Banking & Finance](https://www.indialaw.in/expertise/banking-and-finance/)

---

# IndiaLaw LLP — Offices & Contact Details

---

## General Contact

| | |
|---|---|
| **Website** | https://www.indialaw.in |
| **Primary email** | contact@indialaw.in |
| **Primary phone** | +91 836-9995919 |
| **Contact form** | https://www.indialaw.in/connect/ |
| **Careers (separate channel)** | https://www.indialaw.in/careers/ |


---

## All Offices (9 locations across 8 cities)

### 1. Mumbai — Registered Office & Head Office (Apeejay Chambers)

| | |
|---|---|
| **Address** | Apeejay Chambers, Ground Floor, Wallace Street, Fort, Mumbai – 400 001 |
| **Phone** | [022-6924-7400](tel:02269247400) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/mumbai/ |
| **Practice focus** | Litigation · Arbitration · Insolvency & Bankruptcy · Corporate · Banking · Real Estate · IP |
| **Notes** | The HQ. 5 partners based here. Handles PAN-India litigation, arbitration, corporate, banking, IP and real estate practice. Largest team across all offices. |

### 2. Mumbai — Non-Litigation Office (Excelsior, Fort)

| | |
|---|---|
| **Address** | 4th Floor, New Excelsior Theatre Pvt. Ltd., Amrit Keshav Nayak Marg, Fort, Mumbai – 400 001 |
| **Phone** | [022-697-40500](tel:022-697-40500) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/mumbai/ |
| **Practice focus** | Non-litigation only — consultations, negotiations, transactional work |
| **Notes** | Opened 2024. Litigation and arbitration remain at the Apeejay Chambers head office. |

### 3. Delhi

| | |
|---|---|
| **Address** | Flat No. 1107 & 1108, Prakashdeep Building, Tolstoy Marg, Connaught Place, New Delhi – 110 001 |
| **Phone** | (general line: +91 836-9995919) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/delhi/ |
| **Practice focus** | Litigation · Arbitration · Insolvency & Bankruptcy · Corporate · Banking · Real Estate |
| **Notes** | 3 partners based here. Located near the Supreme Court of India, Delhi High Court and other appellate bodies. |

### 4. Kolkata

| | |
|---|---|
| **Address** | Centre Point Building, Room No. 214, 2nd Floor, Premises No. 21, Hemanta Basu Sarani, Opp. Great Eastern Hotel, P.S. Hare Street, Kolkata – 700 001, West Bengal |
| **Phone** | [+91 33 4813 1001](tel:+913348131001) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/kolkata/ |
| **Practice focus** | Insolvency & Bankruptcy · Commercial & Civil Litigation · Arbitration · Banking Litigation · Real Estate · Labour & Employment · Consumer |
| **Notes** | Advises banks, NBFCs, MSMEs and corporates on transactions and dispute resolution. Works in close coordination with the Mumbai HO. |

### 5. Chennai

| | |
|---|---|
| **Address** | GF-A, 19 Casa Major Road, Egmore, Chennai – 600 008 |
| **Phone** | (general line: +91 836-9995919) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/chennai/ |
| **Practice focus** | Litigation · Insolvency & Bankruptcy · Real Estate |
| **Notes** | Full-fledged office with experienced legal team. Supported by Mumbai HO. |

### 6. Bengaluru (Bangalore)

| | |
|---|---|
| **Address** | INDIALAW LLP, No. 7 Chinnaswamy Mudaliar Road, Shivaji Nagar, Bangalore – 560 051 |
| **Phone** | [080-4167-2444](tel:08041672444) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/bengaluru/ |
| **Practice focus** | Litigation · Insolvency & Bankruptcy · Real Estate · Family Laws · Labour |
| **Notes** | Located near Bangalore High Court. Handles corporate, commercial, banking and matrimonial disputes. |

### 7. Hyderabad

| | |
|---|---|
| **Address** | 403, 4th Floor, Sanatana Ecstasy Building, beside Tanishq Show Room, Himayathnagar, Hyderabad – 500 029, Telangana |
| **Phone** | [040-6666-5166](tel:04066665166) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/hyderabad/ |
| **Practice focus** | Litigation · Banking · Insolvency & Bankruptcy · Real Estate |
| **Notes** | Particularly well known for complex banking matters and real estate transactions. |

### 8. Cochin (Kochi)

| | |
|---|---|
| **Address** | Second Floor, Pulikkal Building, K.K. Padmanabhan Road, Ernakulam North – 682 018, Kerala |
| **Phone** | [0484-3583961](tel:04843583961) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/cochin/ |
| **Practice focus** | Litigation · Insolvency & Bankruptcy · Real Estate |
| **Notes** | Commercial disputes, property litigation, financial-claim arbitrations and real estate transactions. |

### 9. Noida (NCR)

| | |
|---|---|
| **Address** | No. 16 & 17, Silver Offices, 17th Floor, Wave One, Sector 18, Noida – 201 301 |
| **Phone** | (general line: +91 836-9995919) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/noida/ |
| **Practice focus** | Aviation · Insurance · Mergers & Acquisitions · Corporate |
| **Office head** | **Mr. Dinesh Gupta** (joined August 2025 to lead and expand the corporate practice) |
| **Notes** | Newest office. Sector-focused on highly regulated industries serving NCR-based clients. |

---

## Quick-Dial Phone List

| Office | Phone |
|---|---|
| Mumbai HO (Apeejay) | 022-6924-7400 |
| Mumbai Excelsior | 022-697-40500 |
| Kolkata | +91 33 4813 1001 |
| Bengaluru | 080-4167-2444 |
| Hyderabad | 040-6666-5166 |
| Cochin | 0484-3583961 |
| **General / Marketing line** | **+91 836-9995919** |

Delhi, Chennai and Noida route through the general number.

---

## Social Channels

- LinkedIn: https://www.linkedin.com/company/indialaw
- X / Twitter: https://twitter.com/Indialawmumbai
- Facebook: https://www.facebook.com/indialawllp/
- Instagram: https://www.instagram.com/indialawllp

---