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CS Professional · Banking and Insurance - Laws and Practice · Digital Banking

A statute requires a bank guarantee to be authenticated by affixing the signature of the authorised officer. The officer authenticates the electronic guarantee with an electronic signature affixed in the manner prescribed by the Central Government. What is the effect under the IT Act, 2000?

The signature requirement is deemed satisfied. Section 5 of the IT Act, 2000 says that where any law requires a signature, authentication by an electronic signature affixed in the manner prescribed by the Central Government meets it, despite anything in that other law.

  1. AThe requirement of signature is deemed satisfied notwithstanding anything in the other lawCorrect
  2. BThe guarantee is invalid because only a handwritten signature can satisfy a statutory signature requirement
  3. CThe guarantee is valid only if the officer also affixes a handwritten mark on paper
  4. DThe guarantee is valid only if the electronic signature is issued by the Controller personally

Explanation

Section 5 provides that where any law requires authentication by signature, the requirement is deemed satisfied if authenticated by an electronic signature affixed in the manner prescribed by the Central Government, notwithstanding that law. A paper mark is not needed.

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