Andhra Pradesh

A.P. government to collaborate with NeSL on financial credit contracts

The Registration and Stamps Department is planning to collaborate with the National e-Governance Service Limited (NeSL) Information Utility (IU), which serves as the repository of legal evidence for financial credit contracts.

In a statement on Tuesday, Revenue Special Chief Secretary (Excise and Registrations and Stamps) Rajat Bhargava said that NeSL had set up a secured digital document execution (DDE) platform that operates on a remote basis, which would assist the banking sector by pushing out several thousands loan documents daily to MSMEs or individuals, without any physical signature or paperwork between banks and their customers.

“Such a digital workflow is based on integration using APIs between the NeSL and the Registration and Stamps Department for e-Sign for execution of documents and digital e-Stamping through stock holding corporation (SHCIL) or GRAS of the State,” he explained.

He said the NeSL-established DDE platform would assist financial creditors in executing loan documents in a remote manner without the necessity of any physical signature or paper work, facilitating any time anywhere execution of loan agreements.

Explaining about its two salient features, he said e-Sign for execution of documents and digital e-Stamping through SHCIL would provide for remote online payment of stamp duty by lenders and correspondent issuance of unique stamp certificate which is affixed digitally on bank document.

Mr. Bhargava said this would result in 100 % compliance of duty payment by the parties. It also reduces administrative cost with respect to certain optional registrable documents as authorised by the State government.

The digital e-Stamping service, he said, could be extended to agreement or memorandum of agreement relating to secure repayment of loan by bank/finance company, agreement or any document relating to the deposit of title deeds, pawn or pledge relating to the movable property, bond/composition deed/debenture, further charge relating to movable property, indemnity bond, bank guarantee/letter of credit, letter of licence, hypothecation deed relating to movable property, power of attorney relating to movable property, respondentia bond and security bond.

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Printable version | Jun 20, 2022 8:31:55 am |