MUMBAI: National e-Governance Services Ltd (NeSL) is in discussion with state governments to allow digital e-stamping of bank loan agreements for its platform to digitise these documents, said a top executive at the information utility (IU).
In an interview to Mint, NeSL Managing Director and Chief Executive Officer S Ramann said that Delhi and Rajasthan are the only two states that have permitted a fully digital mode of stamp duty payment and delivery. In other states, Ramann said, while the payment can be made digitally, the printout of the certificate is still needed.
“In India, the concept of e-stamping is a misnomer. You have a situation where you pay the fees online but have to collect the printouts from a particular stamp vendor or an agency," said Ramann.
Government-owned NeSL has already run a pilot project with Union Bank of India in its branches in Rajasthan and Delhi. Banks that join the platform will have a module installed in their branches and can send loan information to the IU platform along with data of the borrower. The IU then registers the borrower on the platform and does a one-time password (OTP) identity check and shows him/her the document. Once the borrower accepts and e-signs it, the document is sent back to the bank.
“So, Karnataka, Uttar Pradesh, Tamil Nadu are a few states that have gone to an advanced stage of taking this forward," said Ramann, adding that State Bank of India (SBI), Bank of Baroda (BoB), HDFC Bank and ICICI Bank are at different level of completing the integration with NeSL’s platform.
According to Ramann, a bank spends anywhere between Rs200 and Rs300 on getting a loan document completed. However, on the IU platform, it will cost all of Rs25 for unsecured loan or Rs50 for a secured loan, as a one-time fee, he said.
Banks, he said, can use this platform for retail, small business and even corporate loans.
NeSL is India’s first information utility and is registered with the Insolvency and Bankruptcy Board of India.