New Delhi: The Delhi government's Transport Department has now issued a circular setting October 31 as the deadline for all vehicle loan-providing banks, financial institutions, and NBFCs to integrate the services with the Vahan portal database - following which all services related to terminating hypothecation will go completely online - removing the need to visit banks.
The Delhi government said, "With this 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)."
The transport department added that hypothecation services, which include Addition, Continuation and Termination of Hypothecation on vehicle loans, are the most availed services of the department under the 'Faceless Services' umbrella.
Officials said that the general public now need not 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.
While the banks had agreed to integrate their databases with the NIC Vahan database at an earlier meeting with Transport Minister Kailash Gahlot, HDFC and ICICI banks (which comprise 70-80 per cent of vehicle loans) have so far reported that they have integrated their systems.
The transport department circular adds that from November 1, the banks that fail to integrate their data will not be allowed to enter their data of hypothecation onto the Transport Department database.
The department has further instructed banks and financial institutions to not wait for any request from the vehicle owner to issue the NOC for terminating hypothecation. Instead, the banks have been directed to share the data of all vehicles with the government immediately after the loan on them is repaid.
Gahlot in a statement 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."