Big Relief for Vehicle Owners as RC Hypothecation Removal Goes Fully Online

By Jony Shekhawat | Published Date : February 06, 2026

The Transport Department has made hypothecation removal fully online, allowing vehicle owners to update their RC from home without visiting the RTO.

There is good news for vehicle owners across India. If your vehicle loan is fully paid, you no longer need to visit the RTO to remove the bank name from your RC. The Transport Department has made the hypothecation removal process fully digital and faceless. Now, you can apply from home using the Parivahan portal.

This rule applies to all types of vehicles, including personal cars and commercial vehicles like trucks, buses, and even a small mini truck used for daily business.

What Is Hypothecation Removal

Table of Contents

1. What Is Hypothecation Removal

2. Online Process to Remove Bank Name from RC

3. Auto Approval Feature Saves Time

4. Digital RC Available from Home

5. Documents Required

6. Why This Is a Big Relief

7. Conclusion

Read More: Infrastructure Push Helps Mahindra Trucks and Buses Grow 40% in January

When you buy a vehicle on loan, the bank or finance company name is added to your RC. This is called hypothecation. Once the loan is fully paid, this entry must be removed. Without hypothecation removal, the RC is not considered fully clear, and the vehicle cannot be sold or transferred.

This rule is important for all vehicle types, whether it is a pickup truck used for goods transport or an electric truck running in city areas.

Online Process to Remove Bank Name from RC

Under the new system, as soon as you pay the last loan installment, the bank updates the loan closure details directly on the Parivahan portal. After that, the vehicle owner can complete the process online.

You need to visit parivahan.gov.in, go to vehicle-related services, enter your vehicle registration number, and log in using OTP. Then select the option for termination of hypothecation, upload the required documents, and submit the form. You can easily pay charges online.

After submission of the application,you will receive an application number to track the status. Within a few days, the RC gets updated and the bank name is removed. This process is useful for all vehicle owners, including those owning electric buses or commercial buses.

Auto Approval Feature Saves Time

One of the biggest benefits of the new rule is auto approval. If the RTO does not take any action within seven days and there is no court case or objection on the vehicle, the system automatically approves the application.

This saves time and removes the need for follow-ups. Owners of commercial vehicles like trucks and buses benefit the most, as delays earlier caused business losses.

Digital RC Available from Home

After the process is completed, the updated digital RC can be downloaded directly from the portal. The entire service is free of cost. There is no need to submit physical documents or deal with agents.

This brings transparency and reduces corruption. Whether you own a private car, a pickup truck, or a mini truck, the process is now the same for everyone.

Documents Required

• Bank NOC
• Copy of RC
• Valid ID proof
• Insurance copy
• PUC certificate

Why This Is a Big Relief

This digital service removes the stress of visiting RTO offices and standing in long queues. Vehicle owners no longer need to pay agents or middlemen. The process is clear, fast, and easy to understand.

For people using commercial vehicles like trucks and mini truck fleets, this change saves both time and money. With less paperwork and faster approval, vehicle ownership becomes simpler and smoother.

Conclusion

If your vehicle loan is already closed, do not delay. Apply online and get the bank name removed from your RC without any hassle. This digital hypothecation removal system is a big step towards easier vehicle services for millions of Indians.

Also Read: VECV Eyes Charging Partnerships to Support Growing Electric Bus Ecosystem

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Frequently Asked Questions on Commercial Vehicles

Q1. What is the typical loading capacity of a commercial vehicle?

Ans. Most commercial vehicles have a loading capacity based on their class. Small mini trucks can carry around 1 to 1.5 tons, while larger trucks can carry 5 tons or more, depending on model and build.

Q2. How many people can a commercial vehicle seat?

Ans. Seating capacity varies by type. Mini commercial vehicles usually seat 2–3 people, while bigger cargo vans or buses can seat 6 or more, and passenger-oriented commercial buses can seat 20 to 50 people.

Q3. What kind of mileage can I expect from a commercial vehicle?

Ans. Mileage depends on engine size, load, and road conditions. Smaller vehicles often give better fuel efficiency, while heavier-loaded vehicles will use more fuel. Diesel engines are common for higher mileage on long routes.

Q4. What engine type is used in most commercial vehicles?

Ans. Most commercial vehicles use diesel engines because they provide strong torque and good fuel economy for heavy loads. Some newer models are now also available with electric or CNG options.

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