Canceling Vehicle Hypothecation

The information given below is specific to RTOs in Bangalore. My RTO is in Yeshwanthpura.

I cleared my vehicle (car) loan of three years and had to cancel the hypothecation in the RC (Registration Certificate) book. Since I was “free”, I took the responsibility of getting this work done by myself. Below is the actual procedure, followed at Yeshwanthpura RTO.

Required Documents:
1. Original RC book
2. Original Cover Letter from the Finance Institution
3. Original Form-35 (2 Nos.) given by the finance institute
Note: The address of the finance institution in these forms should match the address in the RC book. RTO will not accept the application if there is a mismatch in the address. Call your finance institution and get this matter resolved if you do not want to waste time at the RTO.
4. Copies of Vehicle Insurance and Emission Certificate (Bring originals for verification)
5. Fees (Since the RTO is issuing smart card, you need to pay for it as well)
6. Envelope (available at stalls near RTOs) and stamps from the post office worth INR 12 (the RC book / smart card will be sent to your residence)
7. File cover (available at stalls near RTOs)

Procedure:
1. Fill in the required details in the form - 35.
2. Paste the stamps on the envelope and write the address where you wish to receive your RC book / smart card.
3. Arrange the documents as per the order given in the required documents.
4. Mark the insurance expiry date in the photocopy of your vehicle insurance.
5. Enclose the documents in the file cover.
6. Visit your respective RTO office and hand over the file to the concerned supervisor responsible for your vehicle registration number. (The supervisor will be responsible for vehicle numbers for some range. Ex: registration number from 0 to 5000.)
7. The supervisor verifies the documents and gives you further instructions on the fees. (Be ready to be treated like trash.)
8. After the verification, take the file to data entry counter.
9. Thereafter go pay the fees (which will be written by the supervisor on the submitted documents. Do not be surprised if the fee is rounded off to the nearest hundred. Actual fee is INR 100 hypothecation + INR 147 smart card, but I was asked to pay 300).
10. Attach the fee receipt in the file.
11. Hand the file over to the clerk who issues an acknowledgment for receiving the documents.

As per the clerk, the smart card should reach you within 15 days.
Be proud of yourself for not going to an agent who usually charges INR 1000 for the same job. Flip side is the arrogance you have to endure from the personnel at the RTO.