Financial credit

AP Government to Collaborate with NeSL on Financial Credit Agreements

Secure platform to help creditors execute loan documents without physical signature or paper work

Secure platform to help creditors execute loan documents without physical signature or paper work

The Department of Registration and Stamps plans to work with the National e-Governance Service Limited (NeSL) Information Utility (IU), which serves as the legal evidence depository for financial credit agreements.

In a statement on Tuesday, the Special Chief Secretary for Revenue (Excise and Records and Stamps), Rajat Bhargava, said NeSL had set up a secure Digital Document Execution (DDE) platform that operates remotely. , which would help the banking sector by repelling many thousands of documents lending to MSMEs or individuals daily, without any physical signatures or documents between the banks and their customers.

“Such a digital workflow is based on integration using APIs between NeSL and the Department of Registration and Stamps for electronic signature for document execution and digital stamping through the holding company (SHCIL) or the state’s GRAS,” he explained.

He said the DDE platform established by NeSL would help financial creditors execute loan documents remotely without requiring a physical signature or paper work, making it easier to execute loan agreements at any time.

Explaining its two main features, he said that electronic signature for document execution and digital stamping via SHCIL would enable remote online payment of stamp duty by lenders and issuance by the correspondent of a certificate unique stamp that is digitally affixed to the bank document.

Mr. Bhargava said this would result in 100% compliance in the payment of duties by the parties. It also reduces administrative costs with respect to certain optional registrable documents authorized by the state government.

The digital stamping service, he said, could be extended to an agreement or memorandum of understanding relating to the secure repayment of a loan by a bank/financial company, an agreement or any document relating to the filing of title deeds, pledges or pledges relating to movable property. property, surety/deed of arrangement/debenture, additional charge relating to movable property, surety bond, bank guarantee/letter of credit, letter of license, deed of mortgage relating to movable property, power of attorney relating to movable property, surety and bail .