Push towards Digital India-MEITY enables authentication of cheques, sale deeds, etc. via a Digital Signature

                                                                                                                                                                                  Wilfred Synrem
Associate, GameChanger Law Advisors

The Ministry of Electronics and Information Technology has recently amended the First Schedule of the Information Technology Act, 2000 (“Act”), which enlists the type of documents or transactions that are exempted from the applicability of the said Act. 

The First Schedule read with Section 3 of the Act (Authentication of Electronic Records) indicates that such list of documents or transactions cannot be authenticated with a digital signature and thereby cannot be classified as an electronic record.

Pre-amendment this list of documents and transactions included (a) negotiable instruments (except a cheque), (b) a power of attorney, (c) a trust, (d) a will or any other testamentary disposition, and (e) a contract of sale or conveyance of immovable property or any interest in such property.

Post-amendment, this list has been cut short and the following documents or transactions can now be authenticated with a digital signature:

(a) a cheque, a demand promissory note, or a bill of exchange issued in favour of or endorsed by an entity regulated by RBI, SEBI, IRDAI, National Housing Bank, and Pension Fund Regulatory and Development Authority;

(b) a power of attorney empowering an entity regulated by RBI, SEBI, IRDAI, National Housing Bank, and Pension Fund Regulatory and Development Authority to act on behalf of the person executing it; and

(c) a contract of sale or conveyance of immovable property or any interest in such property.

The above amendment indeed furthers the push towards digital India.