e-stamping to go Statewide

e-stamping to go Statewide

The initiative is aimed at checking cases of stamp paper fraud

However, the ambitious rollout is currently facing a slight financial gridlock. The State Finance Department, it is understood, is yet to take a call on a small service charge being demanded, for small denomination certificates upto Rs 5,000 by service providers.

Meanwhile, official sources said that the necessary rules have already been set in motion for interested parties such as post offices and banks, to enter into a Memorandum of Understanding (MoU) with the Stock Holding Corporation of India Limited (SHCIL) for providing e-stamping services.

SHCIL is the nodal implementing and central record keeping agency (CRA) appointed by the Centre for collection of stamp duty through e-stamping. SHCIL, as the CRA, is responsible for the user registration, impress balance administration, as also overall e-stamping application operations and maintenance.

Over a year ago, the State government had launched the e-stamping system with as many as eight centres in Bangalore alone, identified for collection of stamp duty through e-stamping, on a pilot basis.

The State-wide launch, which was to have already begun, is now expected to become operational in a month’s time, sources said, adding the rider that the State Finance Department must approve the Rs 12 service charge being demanded by banks and post offices for upto Rs 5,000 stamp certificates.

The service providers receive 15 paise for every certificate; however, in addition to this, they want Rs 12 per certificate as well, to meet various overhead expenditures like internet facility, rentals and manpower, sources said.

While IDBI Bank, Syndicate Bank and Corporation Bank have entered into an MoU with SHCIL for providing e-stamping services on a national basis, State Bank of Mysore, Karnataka Bank and Canara Bank among others are currently in talks with SHCIL for the same, they added.

The system of e-stamping facilitates purchase of stamp papers electronically, as also duty payments to the State government through the same system. The SHCIL, which handles the collection, gets 65 paise as commission on each transactions, sources said.

e-stamping is a computer-based application, and provides for secured electronic way of stamping documents replacing the still prevailing system of physical stamp paper/franking, which incidentally led to the now infamous Telgi stamp paper scam in the State.

The system is not restricted to any fixed denomination, and is programmed to print out stamp certificate of any denomination from as low as Re 1.