Karnataka comes up with draft rules for digital e-stamping
The new system will do away with the 0.65 % service charge levied by Stock Holding Corporation of India Ltd. (SHCIL) on the e-stamping transactions that added substantial cost to the process. The SHCIL had been appointed as an intermediary in 2008 for vending e-stamps.
The draft of Karnataka Stamps (Digital e-stamp) Rules, 2025, was notified on July 14. Once implemented, it will not only replace traditional stamp papers with entirely digital stamping but also align with sustainability goals, making the process paperless. 'The new module is expected to be implemented before the month-end,' Revenue Department sources said.
What it replaces
The new module will replace the e-stamping system, which was launched in 2008 to prevent fraudulent practices in stamp paper-based registrations and transactions. Incidentally, the e-stamp was introduced as a fallout of the fake stamp paper racket run by counterfeiter Abdul Karim Telgi, whose alleged multi-thousand-crore worth fraud also shook Karnataka politics in the early 2000s. The department had also started work on e-stamping in 2006.
Other benefits
The new module will also encourage registration of approximately three crore optionally registrable documents that are processed annually. These documents are not in an audit trail, creating significant gaps in accountability and revenue tracking, according to a department note.
Among other perceived benefits, which will be introduced in phases, are the template-based deed writing that enables users to draft deeds directly on the portal using customisable templates, ensuring standardisation and accuracy. This will also secure Aadhaar-based e-signatures of all the parties involved, ensuring authenticity and validity. While it allows direct payment integration with the treasury, the new system also secures digital storage of stamped documents, eliminating the need for physical storage.
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