Earlier, after fully repaying a vehicle loan, the vehicle owner had to get a No Objection Certificate (NOC) from the bank using Form 35. For this, the owner had to apply on the Transport Department’s website, pay a fee of ₹75, and submit the RC at the office.
Verifying the NOC issued by the bank took a lot of time. Because of the large number of applications, every case could not be properly checked.
This created a risk that hypothecation could be removed using a fake NOC, which could cause losses to both the bank and the vehicle owner.
New Online Process With No Fees
Under the Transport Department’s new system, vehicle owners will only need to apply online. There will be no fee for this service.
After receiving the application, the Transport Department’s portal, developed by NIC (https://parivahan.gov.in/), will automatically verify the details with the concerned bank’s central server. Since the entire process is online, no documents will be required from the bank.
Automatic Approval Within 7 Days
Once the application is submitted, the concerned transport office will have seven days to process it. If there is any pending court case or other issue related to the vehicle, officials can reject the application.
If no decision is taken within seven days, the application will be automatically approved.
Digital RC After Hypothecation Removal
After the hypothecation is removed, vehicle owners can save or print their digital RC (Registration Certificate). With this new system, there is no need to visit the bank or the RTO, and no fees are required.
