Karnataka Launches Fully Digital E-Stamping System
The Karnataka government has introduced draft rules to digitise the entire e-stamping and registration process. This move aims to make the system completely paperless and eliminate additional service charges. The new digital e-stamping system is expected to be implemented soon, marking shift from traditional and earlier e-stamping methods.
Background of E-Stamping in Karnataka
E-stamping was introduced in 2008 to curb fraud in stamp paper transactions. It replaced physical stamp papers after a major counterfeit scam in the early 2000s. The scam involved fake stamp papers and caused widespread financial and political turmoil. Stock Holding Corporation of India Ltd. (SHCIL) was appointed as the sole intermediary for vending e-stamps, charging a 0.65% service fee.
Key Features of the New Digital E-Stamp Rules
The draft Karnataka Stamps (Digital e-stamp) Rules, 2025, propose a fully paperless process for stamping and registration. The new system will remove SHCIL’s service charge, reducing transaction costs. It will replace the current e-stamping system with a more integrated and seamless digital platform. This platform supports direct payment integration with the treasury and offers secure digital storage of documents.
Benefits and Innovations
The new system encourages registration of nearly three crore optionally registrable documents annually. These documents were previously outside audit trails, causing revenue and accountability gaps. The platform includes template-based deed writing tools that allow users to draft deeds online using customisable templates. Aadhaar-based e-signatures will authenticate all parties, ensuring document validity. Digital storage will eliminate the need for physical archives, enhancing sustainability.
Impact on Governance and Sustainability
Digitising the stamping process aligns with broader government goals of transparency and efficiency. It reduces paperwork, cuts costs, and improves tracking of revenue from registrations. The paperless approach supports environmental sustainability by reducing paper consumption. It also strengthens legal and financial accountability through better audit trails.
Implementation Timeline
The draft rules were notified on 14 July 2025. The government expects the new digital e-stamping module to be operational before the end of the month. The phased rollout will gradually introduce all features to users and stakeholders.
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