Hypothecation Removal/Cancellation/Termination

If any of you had bought a two wheeler or a four wheeler on loan will notice in your RC book that the vehicle is actually under "Hypothecation" under the bank that has loaned you though the vehicle may be in your name. Agreed and sometimes in your vehicle insurance papers as well. Once your loan term has expired (successfully) you will receive all your cheques that you must have signed and submitted which is used for ECS debit and for defaulter cases.

In my case it was ICICI bank that promptly sent me the cheques with "Cancelled" printed on each of them and then at a later stage they sent me "NOC" (no objection certificate) address both the insurance office and the RTO. Luckily here in Bangalore, and I'm sure at other places as well, Hypothecation cancellation/Termination is pretty straight forward. The bank will also send you Form 35 along with the NOC. Figure out which is your RTA in Bangalore, KA "01" comes under Koramangla RTA housed at the BDA complex.

The procedure is simple.

* Get your vehicle a pollution certificate (30 bucks) and take a photocopy.
* Get a photocopy of the Insurance certificate.
* Get the original RC book.
* Get the NOC and sign up at appropriate places in Form 35.

Go to the RTA office (before 12PM preferably) and in payment counter pay Rs 100 and tell him Hypothecation Termination. Take the receipt along with the documents and go to the counter where Hypothecation termination is done. You might have to move from one counter to other so don't get bogged down. Always address Govt. employees as "Sir" in a favourish manner and then your work gets done faster. If you know "Kannada" then just speak it. I manged with my broken Kannada. Then they will give you a receipt mentioning the date you should come and collect the modified RC book (typically between 4.30 to 5PM in 2-3 days). Say "thank you" profusely at every place.

Have a look at their webpage as well: Services they offer

No broker and wastage of money. I guess at some places you need to take a DD which is also very simple as these offices are provided with DD counters. Some brokers (mostly the car driving schools and the ones in the vicinity of RTA offices) charge 200 or 300 bucks for no real work at all. Though at the first sight the RTO folks might look like non-cooperating they will get your things done. Make sure you have all the documents and don't try to be verbose in "English". Look simple and naive and things will be done.

Time even these things are introduced at the Bangalore one centers as well. Also if you are member of the "Automobile Association of Southern India", then they will offer these services for a very nominal charge. They also help in towing your vehicle in case of breakdown and host of other services. Check out their website for more details.

Just heard that there will e-passports from 2009 in India.

Good Luck folks !