Transport Department provided the faceless hypothecation termination service to 1.29 lakh vehicle owners
Raipur, 18 July 2023//
The Transport Department of the Chhattisgarh Government has introduced an innovative and convenient initiative, enabling vehicle owners to avail hypothecation termination services from the comfort of their homes. The faceless process has eliminated the need for bank and RTO office visits, and there will be no need to obtain a Form 35 or a NOC from banks. The department officials have informed that 1,29,567 vehicle owners in the state have already benefited from this service. The Transport Department has collaborated with approximately 75 banks, financial institutions, and non-financial companies in the hypothecation termination services, streamlining the process for the public.
In a significant advancement, Transport Department officials have streamlined the hypothecation termination process, eliminating the need for physical applications and documents. Previously, vehicle owners had to go through a cumbersome procedure involving visits to the bank, the RTO office, and online form-filling. Now, with the faceless system in place, vehicle owners can complete the process from home. Once the lending institutions close the loan case, the Transport Department’s vehicle server will update the status within 24 hours. No physical documents or applications are required anymore. The Department will automatically verify and approve the hypothecation termination of the vehicle. To stay updated, vehicle owners will receive SMS notifications and can access the updated RC on platforms like M Parivahan and Digi Locker.
Hypothecation:
Whenever a vehicle is purchased with a loan from a bank, the vehicle is, in a way, kept as collateral or a pledge with the bank. Any changes to the vehicle is restricted without the bank’s permission. A vehicle’s hypothecation status can be determined by checking the Registration Certificate (RC). If the name of the bank is mentioned below, it means that the car is pledged to the bank. When the loan is repaid, the name of the bank is removed by removing the hypothecation. This crucial information helps vehicle owners understand their loan status and obligations.
