Integrate vehicle loan data with Vahan portal: Delhi govt to banks

By IANS | Published: October 4, 2021 09:54 PM2021-10-04T21:54:03+5:302021-10-05T11:09:20+5:30

New Delhi, Oct 4 The Delhi government on Monday directed all all banks, financial institutions and NBFCs to ...

Integrate vehicle loan data with Vahan portal: Delhi govt to banks | Integrate vehicle loan data with Vahan portal: Delhi govt to banks

Integrate vehicle loan data with Vahan portal: Delhi govt to banks

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New Delhi, Oct 4 The Delhi government on Monday directed all all banks, financial institutions and NBFCs to integrate their vehicle loan related data with Vahan portal latest by October 31.

The Delhi Transport Department has issued a circular instructing the vehicle loan provider banks, financial institutions and Non-Banking Financial Companies (NBFCs) to integrate their services with Vahan portal latest by October 31.

As per the circular, the No Objection Certificate (NOC) for Hypothecation Termination from the banks and other financial institutions will be received only in the digital format at the Vahan platform of the National Informatics Centre (NIC).

Hypothecation services which include addition, continuation and termination of hypothecation on vehicle loans is one of the most availed services of the transport department under 'faceless services' launched in August this year by Chief Minister Arvind Kejriwal.

Recently, Delhi Transport Minister Kailash Gahlot had a meeting in this regard with all major banks offering loans on vehicles in the city.

It was decided in the meeting that all the banks and other financial institutions would ensure the integration of their vehicle loan data with NIC Vahan software. HDFC and ICICI together comprise 70-80 per cent of all vehicle loans in Delhi and have already integrated their loan related data with Vahan portal.

In a statement Delhi Transport department said that with this order general public are now not required to visit the bank for the NOC, they can directly apply for hypothecation removal on the Transport Department website under the Faceless Services of the Delhi Government.

Earlier, an applicant after foreclosure of a loan had to apply for termination of Hypothecation and submit Form 35 and NOC from the bank for termination within 90 days.

The circular also says that from November 1, onwards, those banks or financial institutions who fail to integrate the data with the Vahan portal, would not be allowed to enter their data of hypothecation onto the Transport Department database.

The circular further instructs the banks and financial institutions not to wait for any request from the vehicle owner to issue the NOC. Instead, they are required to share the data of all vehicles with the Transport Department, immediately after the loan has been repaid.

In a statement Gahlot said, "We had, in the last month set a strict deadline to take all Banks on board for integrating their data with VAHAN to allow termination on HPT services and I'm happy to see that the process has picked pace and nearly complete. This will be a big step that we will be taking in the direction of going completely Faceless, and doing away with long queues at not just our RTOs, but any place that is involved in delivery of services by Transport Department."

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

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