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New IT Act amendment will boost India’s digital economy

The key amendment that will benefit the sector has been made in three areas: Negotiable instruments, Power of Attorney, and Real Estate.

The Ministry of Electronics and Information Technology (MeitY) has released a notification that now widens the scope of the IT Act and permits various businesses to fully utilize e-signature technology and grow their business rapidly.

Every area of the economy is being transformed by digital technology.

In most influential and highly sensitive industries such as Banking, Financial Services, Insurance, Real Estate and many others, digital transformation may significantly enhance and speed up its time-consuming operations.

The key amendment that will benefit the sector has been made in three areas: Negotiable instruments, Power of Attorney, and Real Estate.

Previously, it was not possible to sign and execute Negotiable Instruments electronically.

Still, now instruments viz. cheques, demand promissory notes (DPN), and bills of exchange that are issued in favor of or endorsed by any bank, financial institution, national housing bank, SEBI intermediaries like mutual fund houses, stockbrokers, etc., IRDA-approved insurance companies, and pension fund regulatory and development authorities of India.

A Power of Attorney (POA) that authorizes any bank, financial institution, SEBI intermediary, insurance company, or pension fund regulator can now be signed using an electronic signature.

The biggest impact that the amendment has made, in our opinion, has to be this one, which comes last but not least.

The lease or sale of immovable property-related documentation was excluded from the purview of the IT Act.

The scope for executing the Sale Deed, Conveyance, and Lease Deed (of any duration) digitally through e-signatures is feasible after the amendment takes effect, among other papers.

“The amendment brought in by MeitY in the Information Technology Act can be a game changer for digital India. It will make the IT Act more inclusive. The effect it can have in sectors like banking, insurance, securities markets, and more importantly real estate and its documentation, will be immense. Electronic signing facilitated by these amendments will subsequently help in making the documentation watertight and convenient at the same time. Ultimately these changes will help boost the Indian Economy. Whilst we await further directives to concretely help our clients benefit from these changes, I’m certain that we, at Cygnet Infotech, with our e-signature solution Cygnature is poised to be a catalyst in this welcome change.”

According to Yogesh Lokhande, VP & Business Head – Cygnature Digital Signing, Cygnet Infotech,
This article was shared with Prittle Prattle News as a Press Release.
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