CS Professional · Banking and Insurance - Laws and Practice · Digital Banking
A cooperative bank's rules require that a customer's loan request 'shall be in writing'. Ravi submits the request as an electronic document that the bank can open and read again whenever required. Under the Information Technology Act, 2000, what is the position on the writing requirement?
The writing requirement is satisfied. Under Section 4 of the IT Act, 2000, a legal requirement of writing is deemed met when the information is made available in electronic form and remains accessible for later reference, so no paper copy is needed.
- AIt is satisfied, because the information is made available in electronic form and is accessible for subsequent referenceCorrect
- BIt is not satisfied, because only a printed paper copy can meet a requirement of writing
- CIt is satisfied only if the document also carries a digital signature certified by a foreign Certifying Authority
- DIt is satisfied only if the bank first obtains the Central Government's approval for that particular request
Explanation
Section 4 deems a requirement that information be in writing, typewritten or printed to be met if the information is rendered or made available in electronic form and is accessible so as to be usable for subsequent reference. Ravi's document meets both conditions. The option demanding paper ignores this deeming rule.
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