CERSAI stands for Central Registry of Securitization Asset Reconstruction and Security Interest. It is a central online registry in India that was established under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.

The main objective of CERSAI is to create a centralized database of security interests created on various types of assets and to provide a platform for lenders and borrowers to register and search for such security interests. It helps in promoting transparency, reducing fraud, and facilitating the smooth functioning of the financial system.

Here is a detailed explanation of the full form and functioning of CERSAI:

Central Registry:
- CERSAI is a central registry, which means it is a single repository of information related to security interests created by lenders on various assets.
- It provides a centralized platform for the registration, verification, and maintenance of security interests.

Securitization:
- Securitization refers to the process of converting illiquid assets into marketable securities.
- CERSAI helps in maintaining records of securitization transactions, including the creation of security interests and transfer of assets.

Asset Reconstruction:
- Asset reconstruction refers to the process of acquiring and restructuring non-performing assets (NPAs) of banks and financial institutions.
- CERSAI maintains records of asset reconstruction transactions, including the transfer of NPAs and creation of security interests.

Security Interest:
- Security interest refers to the right or interest that a lender has on a borrower's asset to secure the repayment of a loan or debt.
- CERSAI helps in maintaining records of security interests created on various types of assets, such as immovable property, movable property, receivables, etc.

Functioning of CERSAI:
1. Registration: Lenders are required to register their security interests with CERSAI within 30 days of creating such interests.
2. Verification: CERSAI verifies the details provided by the lenders and ensures the accuracy and completeness of the information.
3. Maintenance: CERSAI maintains a centralized database of registered security interests, which can be accessed by lenders, borrowers, and other interested parties.
4. Search: Borrowers and potential buyers can search the registry to determine if any security interests exist on specific assets.
5. Information Exchange: CERSAI facilitates the exchange of information between lenders, borrowers, and other stakeholders, thereby promoting transparency and reducing fraud.

In conclusion, CERSAI is the Central Registry of Securitization Asset Reconstruction and Security Interest in India. It plays a crucial role in maintaining a centralized database of security interests on various assets, promoting transparency, and facilitating the smooth functioning of the financial system.