ANI file photo NEW DELHI: In a major relief, the removal of hypothecation from vehicles will now happen automatically through an online system once loan is fully repaid, saving people from the hassle of multiple visits to transport offices and reaching out to banks. The road transport ministry has rolled out this new system, starting March 1 (Monday), initially with one nationalised bank and five Non-Banking Financial Companies (NBFC). More will be roped in soon.The move is aimed at eliminating procedural delays, and reducing inconvenience faced by borrowers in getting their vehicle records updated after clearing their loans and visiting regional transport offices to initiate removal of hypothecation from vehicle registration certificate. Israel attacks IranUS-Israel-Iran War Live Updates: Iran launches ‘massive missile’ strike at US airbase in Bahrain; Israel bombs Beirut’Not happy with UK either’: Donald Trump slams European nations, singles out Spain over Iran campaignIran crisis: Ayatollah’s son Mojtaba Khamenei emerges as front-runner to succeed slain Supreme LeaderThe process often involved multiple visits and significant paperwork.Officials said the system operates using RBI’s Unified Lending Interface (ULI), which enables secure and real-time data exchange between lenders and govt platforms. “The online interface interacts among banks, ULI and the Vahan system. So, the entire process, including the verification, happens without any human intervention. Once the process is complete, the owner gets an SMS from Vahan informing him/ her about the removal of hypothecation. This is part of govt’s initiative to improve ease of living,” said an official.Separately, after the vehicle owner repays the loan, the bank will send the ‘No Objection Certificate (NOC)’ to the owner.At present, SBI and five NBFCs, including Cholamandalam, Shriram Finance and Sundaram Finance, have started implementing this system. Officials said more banks and financial institutions will be onboarded onto the system in phases to ensure wider coverage and seamless implementation nationwide. They added that initiative will significantly reduce processing time and improve transparency.Welcoming the initiative, transport services expert Anil Chhikara said while banks and financing institutions take care of all hypothecation issue when one takes a loan to buy a vehicle, these institutions don’t help customers in the process when they repay the loans.End of ArticleFollow Us On Social MediaVideosAs Israel’s Iron Dome Falters In Iran War, India Opts For Five More Russian S-400 Air Defence System’48 Hours After Modi Left…’: Israel Envoy Reuven Azar Reveals When Netanyahu Approved Iran Strike’It Was Terrifying…’: Indian Badminton Star PV Sindhu Recalls Scary Dubai Transit Amid US Iran WarIndia Confident To Evade Fuel Crisis Amid War As Russia Offers Energy Support Despite Trump Threats’US Seeks To Halt India’s Rise Through Wars’: Khamenei’s Envoy’s Shocking Revelation Blasts TrumpAssam Elections 2026: Congress Releases List Of 42 Candidates, Gaurav Gogoi To Contest From JorhatYouth Congress Chief Uday Bhanu Chib Released By Court After Viral ‘Shirtless’ AI Summit Protest’We Saw Missiles..’: Recalls Indian Who Witnessed Dubai Horror Amid US-Iran War, Returns Home SafelyStrike Terror, Avoid Escalation’: Gp Capt Ajay Ahlawat on Op Sindoor DoctrineIsrael Bombs Iran’s Presidential Office, Trump Says Iran’s Leadership ‘Gone’, ‘Too Late For Talks’123PhotostoriesTwin baby names inspired by courage and grace8 types of Kachoris beyond Pyaz and Raj KachoriPug: 7 reasons why this dog breed is good for childrenWhy it’s so hard to lose weight: Doctors explain how metabolism slowdown and hunger hormones work against dietingChoked by encroachments, Tamil Nadu’s Tambaram bus terminus set for Rs 7 crore overhaul5 places in India where Holi is not celebrated: Know their storiesSelena Gomez’s fashion journey: From admired teen star to red carpet powerhouseBengaluru UV radiation level hits ‘extreme’ 13: What you need to know14 types of veg and non-veg deep-fried pakodas to make the Holi party even more flavourfulRevenge bedtime procrastination: Why you stay up late even when you’re exhausted and how to win over this habit123Hot PicksIran droneUS Iran War Impact on Stock MarketMiddle East CrisisGulf Flights UpdateIncome Tax CalculatorPublic holidays March 2026Bank Holidays MarchTop TrendingNBA Injury UpdateUS Israel Strike IranUS Attack on IranCBSE postpones Class 10 and 12 board examsUS Strike IranLG Hospital AhmedabadMiddle East CrisisIsrael Iran ConflictChandra Grahan 2026 TimeSchool Holiday in March
NEW DELHI: In a major relief, the removal of hypothecation from vehicles will now happen automatically through an online system once loan is fully repaid, saving people from the hassle of multiple visits to transport offices and reaching out to banks. The road transport ministry has rolled out this new system, starting March 1 (Monday), initially with one nationalised bank and five Non-Banking Financial Companies (NBFC). More will be roped in soon.The move is aimed at eliminating procedural delays, and reducing inconvenience faced by borrowers in getting their vehicle records updated after clearing their loans and visiting regional transport offices to initiate removal of hypothecation from vehicle registration certificate. The process often involved multiple visits and significant paperwork.Officials said the system operates using RBI’s Unified Lending Interface (ULI), which enables secure and real-time data exchange between lenders and govt platforms. “The online interface interacts among banks, ULI and the Vahan system. So, the entire process, including the verification, happens without any human intervention. Once the process is complete, the owner gets an SMS from Vahan informing him/ her about the removal of hypothecation. This is part of govt’s initiative to improve ease of living,” said an official.Separately, after the vehicle owner repays the loan, the bank will send the ‘No Objection Certificate (NOC)’ to the owner.At present, SBI and five NBFCs, including Cholamandalam, Shriram Finance and Sundaram Finance, have started implementing this system. Officials said more banks and financial institutions will be onboarded onto the system in phases to ensure wider coverage and seamless implementation nationwide. They added that initiative will significantly reduce processing time and improve transparency.Welcoming the initiative, transport services expert Anil Chhikara said while banks and financing institutions take care of all hypothecation issue when one takes a loan to buy a vehicle, these institutions don’t help customers in the process when they repay the loans.