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The Information Technology Act, 2000

(No. 21 of 2000) [9th June, 2000]

An Act to provide legal recognition for transactions carried out by means

of electronic data interchange and other means of electronic

communication, commonly referred to as "electronic commerce", which

involve the use of alternatives to paper-based methods of communication

and storage of information, to facilitate electronic filing of documents

with the Government agencies and further to amend the Indian Penal Code,

the Indian Evidence Act, 1872, the Bankers' Books Evidence Act, 1891 and

the Reserve Bank of India Act, 1934 and for matters connected therewith or

incidental thereto. whereas the General Assembly of the United Nations by

resolution A/RES/51/162, dated the 30th January, 1997 has adopted the

Model Law on Electronic Commerce adopted by the United Nations Commission

on International Trade Law; and whereas the said resolution recommends

inter alia that all States give favourable consideration to the said Model

Law when they enact or revise their laws, in view of the need for

uniformity of the law applicable to alternatives to paper-cased methods of

communication and storage of information; and whereas it is considered

necessary to give effect to the said resolution and to promote efficient

delivery of Government services by means of reliable electronic records.

be it enacted by Parliament in the Fifty-first Year of the Republic of

India as follows:—

I - PRELIMINARY

1. Short title, extent, commencement and application.

(1) This Act may be called the Information Technology Act, 2000.

(2) It shall extend to the whole of India and, save as otherwise provided

in this Act, it applies also to any offence or contravention thereunder

committed outside India by any person.

(3) It shall come into force on such date as the Central Government may,

by notification, appoint and different dates may be appointed for

different provisions of this Act and any reference in any such provision

to the commencement of this Act shall be construed as a reference to the

commencement of that provision.

(4) Nothing in this Act shall apply to,

(a) a negotiable instrument as defined in section 13 of the Negotiable

Instruments Act, 1881;

(b) a power-of-attorney as defined in section 1A of the Powers-of-

Attorney Act, 1882;

(d) a will as defined in clause (h) of section 2 of the Indian Succession

Act, 1925 including any other testamentary disposition by whatever name

called;

(e) any contract for the sale or conveyance of immovable property or any

interest in such property;

(f) any such class of documents or transactions as may be notified by the

Central Government in the Official Gazette.

2. Definitions.

(1) In this Act, unless the context otherwise requires, —

(a) "access" with its grammatical variations and cognate expressions

means gaining entry into, instructing or communicating with the logical,

arithmetical, or memory function resources of a computer, computer system

or computer network;

(b) "addressee" means a person who is intended by the originator to

receive the electronic record but does not include any intermediary;

subsection (1) of section 46;

(d) "affixing digital signature" with its grammatical variations and

cognate expressions means adoption of any methodology or procedure by a

person for the purpose of authenticating an electronic record by means of

digital signature;

(e) "appropriate Government" means as respects any matter,

(i) Enumerated in List II of the Seventh Schedule to the Constitution;

(ii) relating to any State law enacted under List III of the Seventh

Schedule to the Constitution, the State Government and in any other case,

the Central Government;

(f) "asymmetric crypto system" means a system of a secure key pair

consisting of a private key for creating a digital signature and a public

key to verify the digital signature;

(g) "Certifying Authority" means a person who has been granted a licence

to issue a Digital Signature Certificate under section 24;

(h) "certification practice statement" means a statement issued by a

Certifying Authority to specify the practices that the Certifying

Authority employs in issuing Digital Signature Certificates;

(i) "computer" means any electronic magnetic, optical or other high-speed

data processing device or system which performs logical, arithmetic, and

memory functions by manipulations of electronic, magnetic or optical

impulses, and includes all input, output, processing, storage, computer

software, or communication facilities which are connected or related to

the computer in a computer system or computer network;

(j) "computer network" means the interconnection of one or more computers

through —

(i) the use of satellite, microwave, terrestrial line or other

communication media; and

(ii) terminals or a complex consisting of two or more interconnected

computers whether or not the interconnection is continuously maintained;

(k) "computer resource" means computer, computer system, computer

network, data,computer data base or software;

(l) "computer system" means a device or collection of devices, including

input and output support devices and excluding calculators which are not

programmable and capable of being used in conjunction with external files,

which contain computer programmes, electronic instructions, input data and

output data, that performs logic, arithmetic, data storage and retrieval,

communication control and other functions;

(m) "Controller" means the Controller of Certifying Authorities appointed

under sub-section (1) of section 17;

(n) "Cyber Appellate Tribunal" means the Cyber Regulations Appellate

Tribunal established under sub-section (1) of section 48;

(o) "data" means a representation of information, knowledge, facts,

concepts or instructions which are being prepared or have been prepared in

a formalised manner, and is intended to be processed, is being processed

or has been processed in a computer system or computer network, and may be

in any form (including computer printouts magnetic or optical storage

media, punched cards, punched tapes) or stored internally in the memory of

the computer;

(p) "digital signature" means authentication of any electronic record by a

subscriber by means of an electronic method or procedure in accordance

with the provisions of section 3;

(q) "Digital Signature Certificate" means a Digital Signature Certificate

issued under sub-section (4) of section 35;

(r) "electronic form" with reference to information means any information

generated, sent, received or stored in media, magnetic, optical, computer

memory, micro film, computer generated micro fiche or similar device;

(s) "Electronic Gazette" means the Official Gazette published in the

electronic form;

(t) "electronic record" means data, record or data generated, image or

sound stored, received or sent in an electronic form or micro film or

computer generated micro fiche;

(u) "function", in relation to a computer, includes logic, control

arithmetical process, deletion, storage and retrieval and communication or

telecommunication from or within a computer;

(v) "information" includes data, text, images, sound, voice, codes,

computer programmes, software and databases or micro film or computer

generated micro fiche :

(w) "intermediary" with respect to any particular electronic message means

any person who on behalf of another person receives, stores or transmits

that message or provides any service with respect to that message;

(x) "key pair", in an asymmetric crypto system, means a private key and

its mathematically related public key, which are so related that the

public key can verify a digital signature created by the private key;

(y) "law" includes any Act of Parliament or of a State Legislature,

Ordinances promulgated by the President or a Governor, as the case may be.

Regulations made by the President under article 240, Bills enacted as

President's Act under sub-clause (a) of clause (1) of article 357 of the

Constitution and includes rules, regulations, bye-laws and orders issued

or made thereunder;

(z) "licence" means a licence granted to a Certifying Authority under

section 24;

(za) "originator" means a person who sends, generates, stores or transmits

any electronic message or causes any electronic message to be sent,

generated, stored or transmitted to any other person but does not include

an intermediary;

(zb) "prescribed" means prescribed by rules made under this Act;

(zc) "private key" means the key of a key pair used to create a digital

signature;

(zd) "public key" means the key of a key pair used to verify a digital

signature and listed in the Digital Signature Certificate;

(ze) "secure system" means computer hardware, software, and procedure that

(a) are reasonably secure from unauthorised access and misuse;

(b) provide a reasonable level of reliability and correct operation;

(d) adhere to generally accepted security procedures;

(zf) "security procedure" means the security procedure prescribed under

section 16 by the Central Government;

(zg) "subscriber" means a person in whose name the Digital Signature

Certificate is issued;

(zh) "verify" in relation to a digital signature, electronic record or

public key, with its grammatical variations and cognate expressions means

to determine whether—

(a) the initial electronic record was affixed with the digital signature

by the use of private key corresponding to the public key of the

subscriber;

(b) the initial electronic record is retained intact or has been altered

since such electronic record was so affixed with the digital signature.

(2) Any reference in this Act to any enactment or any provision thereof

shall, in relation to an area in which such enactment or such provision is

not in force, be construed as a reference to the corresponding law or the

relevant provision of the corresponding law, if any, in force in that

area.

II - DIGITAL SIGNATURE

3. Authentication of electronic records.

(1) Subject to the provisions of this section any subscriber may

authenticate an electronic record by affixing his digital signature.

(2) The authentication of the electronic record shall be effected by the

use of asymmetric crypto system and hash function which envelop and

transform the initial electronic record into another electronic record.

Explanation.—For the purposes of this sub-section, "hash function" means

an algorithm mapping or translation of one sequence of bits into another,

generally smaller, set known as "hash result" such that an electronic

record yields the same hash result every time the algorithm is executed

with the same electronic record as its input making it computationally

infeasible —

(a) to derive or reconstruct the original electronic record from the hash

result produced by the algorithm;

(b) that two electronic records can produce the same hash result using the

algorithm.

(3) Any person by the use of a public key of the subscriber can verify the

electronic record.

(4) The private key and the public key are unique to the subscriber and

constitute a functioning key pair.

III - ELECTRONIC GOVERNANCE

4. Legal recognition of electronic records.

Where any law provides that information or any other matter shall be in

writing or in the typewritten or printed form, then, notwithstanding

anything contained in such law, such requirement shall be deemed to have

been satisfied if such information or matter is—

(a) rendered or made available in an electronic form; and

(b) accessible so as to be usable for a subsequent reference.

5. Legal recognition of digital signatures.

Where any law provides that information or any other matter shall be

authenticated by affixing the signature or any document shall be signed or

bear the signature of any person (hen, notwithstanding anything contained

in such law, such requirement shall be deemed to have been satisfied, if

such information or matter is authenticated by means of digital signature

affixed in such manner as may be prescribed by the Central Government.

Explanation.—For the purposes of this section, "signed", with its

grammatical variations and cognate expressions, shall, with reference to a

person, mean affixing of his hand written signature or any mark on any

document and the expression "signature" shall be construed accordingly.

6. Use of electronic records and digital signatures in Government and its

agencies.

(1) Where any law provides for

(a) the filing of any form. application or any other document with any

office, authority, body or agency owned or controlled by the appropriate

Government in a particular manner;

(b) the issue or grant of any licence, permit, sanction or approval by

whatever name called in a particular manner;

notwithstanding anything contained in any other law for the time being in

force, such requirement shall be deemed to have been satisfied if such

filing, issue, grant, receipt or payment, as the case may be, is effected

by means of such electronic form as may be prescribed by the appropriate

Government.

(2) The appropriate Government may, for the purposes of sub-section (1),

by rules, prescribe

(a) the manner and format in which such electronic records shall be filed,

created or issued;

(b) the manner or method of payment of any fee or charges for filing,

creation or issue any electronic record under clause (a).

7. Retention of electronic records.

(1) Where any law provides that documents, records or information shall be

retained for any specific period, then, that requirement shall be deemed

to have been satisfied if such documents, records or information are

retained in the electronic form, if —

(a) the information contained therein remains accessible so as to be

usable for a subsequent reference;

(b) the electronic record is retained in the format in which it was

originally generated, sent or received or in a format which can be

demonstrated to represent accurately the information originally generated,

sent or received;

destination, date and time of despatch or receipt of such electronic

record are available in the electronic record :

Provided that this clause does not apply to any information which is

automatically generated solely for the purpose of enabling an electronic

record to be despatched or received.

(2) Nothing in this section shall apply to any law that expressly provides

for the retention of documents, records or information in the form of

electronic records.

8. Publication of rule, regulation, etc., in Electronic Gazette.

Where any law provides that any rule, regulation, order, bye-law,

notification or any other matter shall be published in the Official

Gazette, then, such requirement shall be deemed to have been satisfied if

such rule, regulation, order, bye-law, notification or any other matter is

published in the Official Gazette or Electronic Gazette :

Provided that where any rule, regulation, order, bye-law, notification or

any other matter is published in the Official Gazette or Electronic

Gazette, the date of publication shall be deemed to be the date of the

Gazette which was first published in any form.

9. Sections 6, 7 and 8 not to confer right to insist document should be

accepted in electronic form.

Nothing contained in sections 6, 7 and 8 shall confer a right upon any

person to insist that any Ministry or Department of the Central Government

or the State Government or any authority or body established by or under

any law or controlled or funded by the Central or State Government should

accept, issue, create, retain and preserve any document in the form of

electronic records or effect any monetary transaction in the electronic

form.

10. Power to make rules by Central Government in respect of digital

signature.

The Central Government may, for the purposes of this Act, by rules,

prescribe—

(a) the type of digital signature;

(b) the manner and format in which the digital signature shall be affixed;

affixing the digital signature;

(d) control processes and procedures to ensure adequate integrity,

security and confidentiality of electronic records or payments; and

(e) any other matter which is necessary to give legal effect to digital

signatures.

IV - ATTRIBUTION, ACKNOWLEDGMENT AND DESPATCH OF ELECTRONIC RECORDS

11. Attribution of electronic records.

An electronic record shall be attributed to the originator—

(a) if it was sent by the originator himself;

(b) by a person who had the authority to act on behalf of the originator

in respect of that electronic record; or

to operate automatically.

12. Acknowledgment of receipt.

(1) Where the originator has not agreed with the addressee that the

acknowledgment of receipt of electronic record be given in a particular

form or by a particular method, an acknowledgment may be given by—

(a) any communication by the addressee, automated or otherwise; or

(b) any conduct of the addressee, sufficient to indicate to the originator

that the electronic record has been received.

(2) Where the originator has stipulated that the electronic record shall

be binding only on receipt of an acknowledgment of such electronic record

by him, then unless acknowledgment has been so received, the electronic

record shall be deemed to have been never sent by the originator.

(3) Where the originator has not stipulated that the electronic record

shall be binding only on receipt of such acknowledgment, and the

acknowledgment has not been received by the originator within the time

specified or agreed or, if no time has been specified or agreed to within

a reasonable time, then the originator may give notice to the addressee

stating that no acknowledgment has been received by him and specifying a

reasonable time by which the acknowledgment must be received by him and if

no acknowledgment is received within the aforesaid time limit he may after

giving notice to the addressee, treat the electronic record as though it

has never been sent.

13. Time and place of despatch and receipt of electronic record.

(1) Save as otherwise agreed to between the originator and the addressee,

the dispatch of an electronic record occurs when it enters a computer

resource outside the control of the originator.

(2) Save as otherwise agreed between the originator and the addressee, the

time of receipt of an electronic record shall be determined as follows,

namely :—

(a) if the addressee has designated a computer resource for the purpose of

receiving electronic records,—

(i) receipt occurs at the time when the electronic, record enters the

designated computer resource; or

(ii) if the electronic record is sent to a computer resource of the

addressee that is not the designated computer resource, receipt occurs at

the time when the electronic record is retrieved by the addressee;

(b) if the addressee has not designated a computer resource along with

specified timings, if any, receipt occurs when the electronic record

enters the computer resource of the addressee.

(3) Save as otherwise agreed to between the originator and the addressee,

an electronic record is deemed to be dispatched at the place where the

originator has his place of business, and is deemed to be received at the

place where the addressee has his place of business.

(4) The provisions of sub-section (2) shall apply notwithstanding that the

place where the computer resource is located may be different from the

place where the electronic record is deemed to have been received under

sub-section (3).

(5) For the purposes of this section,

(a) if the originator or the addressee has more than one place of

business, the principal place of business, shall be the place of business;

(b) if the originator or the addressee does not have a place of business,

his usual place of residence shall be deemed to be the place of business;

place where it is registered.

V - SECURE ELECTRONIC RECORDS AND SECURE DIGITAL SIGNATURES

14. Secure electronic record.

Where any security procedure has been applied to an electronic record at a

specific point of time. then such record shall be deemed to be a secure

electronic record from such point of time to the time of verification.

15. Secure digital signature.

If, by application of a security procedure agreed to by the parties

concerned, it can be verified that a digital signature, at the time it was

affixed, was

(a) unique to the subscriber affixing it;

(b) capable of identifying such subscriber;

the subscriber and is linked to the electronic record to which it relates

in such a manner that if the electronic record was altered the digital

signature would be invalidated, then such digital signature shall be

deemed to be a secure digital signature.

16. Security procedure.

The Central Government shall for the purposes of this Act prescribe the

security procedure having regard to commercial circumstances prevailing at

the time when the procedure was used, including —

(a) the nature of the transaction;

(b) the level of sophistication of the parties with reference to their

technological capacity;

(d) the availability of alternatives offered to but rejected by any party;

(e) the cost of alternative procedures; and

(f) the procedures in general use for similar types of transactions or

communications.

VI - REGULATION OF CERTIFYING AUTHORITIES

17. Appointment of Controller and other officers.

(1) The Central Government may, by notification in the Official Gazette,

appoint a Controller of Certifying Authorities for the purposes of this

Act and may also by the same or subsequent notification appoint such

number of Deputy Controllers and Assistant Controllers as it deems fit.

(2) The Controller shall discharge his functions under this Act subject to

the general control and directions of the Central Government.

(3) The Deputy Controllers and Assistant Controllers shall perform the

functions assigned to them by the Controller under the general

superintendence and control of the Controller.

(4) The qualifications, experience and terms and conditions of service of

Controller, Deputy Controllers and Assistant Controllers shall be such as

may be prescribed by the Central Government.

(5) The Head Office and Branch Office of the office of the Controller

shall be at such places as the Central Government may specify, and these

may be established at such places as the Central Government may think fit.

(6) There shall be a seal of the Office of the Controller.

18. Functions of Controller.

The Controller may perform all or any of the following functions, namely :—

(a) exercising supervision over the activities of the Certifying

Authorities;

(b) certifying public keys of the Certifying Authorities;

Authorities;

(d) specifying the qualifications and experience which employees of the

Certifying Authorities should possess;

(e) specifying the conditions subject to which the Certifying Authorities

shall conduct their business;

(f) specifying the contents of written, printed or visual materials and

advertisements that may be distributed or used in respect of a Digital

Signature Certificate and the public key;

(g) specifying the form and content of a Digital Signature Certificate and

the key,

(h) specifying the form and manner in which accounts shall be maintained

by the Certifying Authorities;

(i) specifying the terms and conditions subject to which auditors may be

appointed and the remuneration to be paid to them;

(j) facilitating the establishment of any electronic system by a

Certifying Authority either solely or jointly with other Certifying

Authorities and regulation of such systems;

(k) specifying the manner in which the Certifying Authorities shall

conduct their dealings with the subscribers;

(l) resolving any conflict of interests between the Certifying Authorities

and the subscribers;

(m) laying down the duties of the Certifying Authorities;

(n) maintaining a data base containing the disclosure record of every

Certifying Authority containing such particulars as may be specified by

regulations, which shall be accessible to public.

19. Recognition of foreign Certifying Authorities.

(1) Subject to such conditions and restrictions as may be specified by

regulations, the Controller may with the previous approval of the Central

Government, and by notification in the Official Gazette, recognise any

foreign Certifying Authority as a Certifying Authority for the purposes of

this Act.

(2) Where any Certifying Authority is recognised under sub-section (1),

the Digital Signature Certificate issued by such Certifying Authority

shall be valid for the purposes of this Act.

(3) The Controller may, if he is satisfied that any Certifying Authority

has contravened any of the conditions and restrictions subject to which it

was granted recognition under sub-section (1) he may, for reasons to be

recorded in writing, by notification in the Official Gazette, revoke such

recognition.

20. Controller to act as repository.

(1) The Controller shall be the repository of all Digital Signature

Certificates issued under this Act.

(2) The Controller shall —

(a) make use of hardware, software and procedures that are secure from

intrusion and misuse;

(b) observe such other standards as may be prescribed by the Central

Government, to ensure that the secrecy and security of the digital

signatures are assured.

(3) The Controller shall maintain a computerised data base of all public

keys in such a manner that such data base and the public keys are

available to any member of the public.

21. Licence to issue Digital Signature Certificates.

(1) Subject to the provisions of sub-section (2), any person may make an

application, to the Controller, for a licence to issue Digital Signature

Certificates.

(2) No licence shall be issued under sub-section (1), unless the applicant

fulfills such requirements with respect to qualification, expertise,

manpower, financial resources and other infrastructure facilities, which

are necessary to issue Digital Signature Certificates as may be prescribed

by the Central Government

(3) A licence granted under this section shall —

(a) be valid for such period as may be prescribed by the Central

Government;

(b) not be transferable or heritable;

regulations.

22. Application for licence.

(1) Every application for issue of a licence shall be in such form as may

be prescribed by the Central Government.

(2) Every application for issue of a licence shall be accompanied by

(a) a certification practice statement;

(b) a statement including the procedures with respect to identification of

the applicant;

be prescribed by the Central Government;

(d) such other documents, as may be prescribed by the Central Government.

23. Renewal of licence.

An application for renewal of a licence shall be

(a) in such form;

(b) accompanied by such fees, not exceeding five thousand rupees,

as may be prescribed by the Central Government and shall be made not less

than forty-five days before the date of expiry of the period of validity

of the licence.

24. Procedure for grant or rejection of licence.

The Controller may, on receipt of an application under sub-section (1) of

section 21, after considering the documents accompanying the application

and such other factors, as he deems fit, grant the licence or reject the

application :

Provided that no application shall be rejected under this section unless

the applicant has been given a reasonable opportunity of presenting his

case.

25. Suspension of licence.

(1) The Controller may, if he is satisfied after making such inquiry, as

he may think fit, that a Certifying Authority has,

(a) made a statement in, or in relation to, the application for the issue

or renewal of the licence, which is incorrect or false in material

particulars;

(b) failed to comply with the terms and conditions subject to which the

licence was granted;

sub-section (2) of section 20;

(d) contravened any provisions of this Act, rule, regulation or order made

thereunder, revoke the licence :

Provided that no licence shall be revoked unless the Certifying Authority

has been given a reasonable opportunity of showing cause against the

proposed revocation.

(2) The Controller may, if he has reasonable cause to believe that there

is any ground for revoking a licence under sub-section (1), by order

suspend such licence pending the completion of any inquiry ordered by him:

Provided that no licence shall be suspended for a period exceeding ten

days unless the Certifying Authority has been given a reasonable

opportunity of showing cause against the proposed suspension.

(3) No Certifying Authority whose licence has been suspended shall issue

any Digital Signature Certificate during such suspension.

26. Notice of suspension or revocation of licence.

(1) Where the licence of the Certifying Authority is suspended or revoked,

the Controller shall publish notice of such suspension or revocation, as

the case may be, in the database maintained by him.

(2) Where one or more repositories are specified, the Controller shall

publish notices of such suspension or revocation, as the case may be, in

all such repositories :

Provided that the data base containing the notice of such suspension or

revocation, as the case may be, shall be made available through a web site

which shall be accessible round the clock :

Provided further that the Controller may, if he considers necessary,

publicise the contents of database in such electronic or other media, as

he may consider appropriate.

27. Power to delegate.

The Controller may, in writing, authorise the Deputy Controller, Assistant

Controller or any officer to exercise any of the powers of the Controller

under this Chapter.

28. Power to investigate contraventions.

(1) The Controller or any officer authorised by him in this behalf shall

take up for investigation any contravention of the provisions of this Act,

rules or regulations made thereunder.

(2) The Controller or any officer authorised by him in this behalf shall

exercise the like powers which are conferred on Income-tax authorities

under Chapter XIII of the Income-tax Act, 1961 and shall exercise such

powers, subject to such limitations laid down under that Act.

29. Access to computers and data.

(1) Without prejudice to the provisions of sub-section (1) of section 69,

the Controller or any person authorised by him shall, if he has reasonable

cause to suspect that any contravention of the provisions of this Act,

rules or regulations made thereunder has been committed, have access to

any computer system, any apparatus, data or any other material connected

with such system, for the purpose of searching or causing a search to be

made for obtaining any information or data contained in or available to

such computer system.

(2) For the purposes of sub-section (1), the Controller or any person

authorised by him may, by order, direct any person incharge of, or

otherwise concerned with the operation of, the computer system, data

apparatus or material, to provide him with such reasonable technical and

other assistance as he may consider necessary.

30. Certifying Authority to follow certain procedures.

Every Certifying Authority shall, —

(a) make use of hardware, software and procedures that are secure from

intrusion and misuse;

(b) provide a reasonable level of reliability in its services which are

reasonably suited to the performance of intended functions;

of the digital signatures are assured; and

(d) observe such other standards as may be specified by regulations.

31. Certifying Authority to ensure compliance of the Act, etc.

Every Certifying Authority shall ensure that every person employed or

otherwise engaged by it complies, in the course of his employment or

engagement, with the provisions of this Act, rules, regulations and orders

made thereunder.

32. Display of licence.

Every Certifying Authority shall display its licence at a conspicuous

place of the premises in which it carries on its business.

33. Surrender of licence.

(1) Every Certifying Authority whose licence is suspended or revoked shall

immediately after such suspension or revocation, surrender the licence to

the Controller.

(2) Where any Certifying Authority fails to surrender a licence under

sub-section (1), the person in whose favour a licence is issued, shall be

guilty of an offence and shall be punished with imprisonment which may

extend up to six months or a fine which may extend up to ten thousand

rupees or with both.

34. Disclosure.

(1) Every Certifying Authority shall disclose in the manner specified by

regulations

(a) its Digital Signature Certificate which contains the public key

corresponding to the private key used by that Certifying Authority to

digitally sign another Digital Signature Certificate;

(b) any certification practice statement relevant thereto;

certificate, if any; and

(d) any other fact that materially and adversely affects either the

reliability of a Digital Signature Certificate, which that Authority has

issued, or the Authority's ability to perform its services.

(2) Where in the opinion of the Certifying Authority any event has

occurred or any situation has arisen which may materially and adversely

affect the integrity of its computer system or the conditions subject to

which a Digital Signature Certificate was granted, then, the Certifying

Authority shall —

(a) use reasonable efforts to notify any person who is likely to be

affected by that occurrence; or

(b) act in accordance with the procedure specified in its certification

practice statement to deal with such event or situation.

VII - DIGITAL SIGNATURE CERTIFICATES

35. Certifying Authority to issue Digital Signature Certificate.

(1) Any person may make an application to the Certifying Authority for the

issue of a Digital Signature Certificate in such form as may be prescribed

by the Central Government

(2) Every such application shall be accompanied by such fee not exceeding

twenty-five thousand rupees as may be prescribed by the Central

Government, to be paid to the Certifying Authority :

Provided that while prescribing fees under sub-section (2) different fees

may be prescribed for different classes of applicants'.

(3) Every such application shall be accompanied by a certification

practice statement or where there is no such statement, a statement

containing such particulars, as may be specified by regulations.

(4) On receipt of an application under sub-section (1), the Certifying

Authority may, after consideration of the certification practice statement

or the other statement under sub-section (3) and after making such

enquiries as it may deem fit, grant the Digital Signature Certificate or

for reasons to be recorded in writing, reject the application :

Provided that no Digital Signature Certificate shall be granted unless the

Certifying Authority is satisfied that —

(a) the applicant holds the private key corresponding to the public key to

be listed in the Digital Signature Certificate;

(b) the applicant holds a private key, which is capable of creating a

digital signature;

digital signature affixed by the private key held by the applicant :

Provided further that no application shall be rejected unless the

applicant has been given a reasonable opportunity of showing cause against

the proposed rejection.

36. Representations upon issuance of Digital Signature Certificate.

A Certifying Authority while issuing a Digital Signature Certificate shall

certify that --

(a) it has complied with the provisions of this Act and the rules and

regulations made thereunder,

(b) it has published the Digital Signature Certificate or otherwise made

it available to such person relying on it and the subscriber has accepted

it;

listed in the Digital Signature Certificate;

(d) the subscriber's public key and private key constitute a functioning

key pair,

(e) the information contained in the Digital Signature Certificate is

accurate; and

(f) it has no knowledge of any material fact, which if it had been

included in the Digital Signature Certificate would adversely affect the

reliability of the representations made in clauses (a) to (d).

37. Suspension of Digital Signature Certificate.

(1) Subject to the provisions of sub-section (2), the Certifying Authority

which has issued a Digital Signature Certificate may suspend such Digital

Signature Certificate, —

(a) on receipt of a request to that effect from —

(i) the subscriber listed in toe Digital Signature Certificate; or

(ii) any person duly authorised to act on behalf of that subscriber,

(b) if it is of opinion that the Digital Signature Certificate should be

suspended in public interest

(2) A Digital Signature Certificate shall not be suspended for a period

exceeding fifteen days unless the subscriber has been given an opportunity

of being heard in the matter.

(3) On suspension of a Digital Signature Certificate under this section,

the Certifying Authority shall communicate the same to the subscriber.

38. Revocation of Digital Signature Certificate.

(1) A Certifying Authority may revoke a Digital Signature Certificate

issued by it

(a) where the subscriber or any other person authorised by him makes a

request to that effect; or

(b) upon the death of the subscriber, or

the subscriber is a firm or a company.

(2) Subject to the provisions of sub-section (3) and without prejudice to

the provisions of sub-section (1), a Certifying Authority may revoke a

Digital Signature Certificate which has been issued by it at any time, if

it is of opinion that

(a) a material fact represented in the Digital Signature Certificate is

false or has been concealed;

(b) a requirement for issuance of the Digital Signature Certificate was

not satisfied;

compromised in a manner materially affecting the Digital Signature

Certificate's reliability;

(d) the subscriber has been declared insolvent or dead or where a

subscriber is a firm or a company, which has been dissolved, wound-up or

otherwise ceased to exist

(3) A Digital Signature Certificate shall not be revoked unless the

subscriber has been given an opportunity of being heard in the matter.

(4) On revocation of a Digital Signature Certificate under this section,

the Certifying Authority shall communicate the same to the subscriber.

39. Notice of suspension or revocation.

(1) Where a Digital Signature Certificate is suspended or revoked under

section 37 or section 38, the Certifying Authority shall publish a notice

of such suspension or revocation, as the case may be, in the repository

specified in the Digital Signature Certificate for publication of such

notice.

(2) Where one or more repositories are specified, the Certifying Authority

shall publish notices of such suspension or revocation, as the case may

he. in all such repositories.

VIII - DUTIES OF SUBSCRIBERS

40. Generating key pair.

Where any Digital Signature Certificate, the public key of which

corresponds to the private key of that subscriber which is to be listed in

the Digital Signature Certificate has been accepted by a subscriber, then,

the subscriber shall generate the key pair by applying the security

procedure.

41. Acceptance of Digital Signature Certificate.

(1) A subscriber shall be deemed to have accepted a Digital Signature

Certificate if he publishes or authorises the publication of a Digital

Signature Certificate

(a) to one or more persons;

(b) in a repository, or otherwise demonstrates his approval of the Digital

Signature Certificate in any manner.

(2) By accepting a Digital Signature Certificate the subscriber certifies

to all who reasonably rely on the information contained in the Digital

Signature Certificate that

(a) the subscriber holds the private key corresponding to the public key

listed in the Digital Signature Certificate and is entitled to hold the

same;

(b) all representations made by the subscriber to the Certifying Authority

and all material relevant to the information contained in the Digital

Signature Certificate are true;

the knowledge of the subscriber is true.

42. Control of private key.

(1) Every subscriber shall exercise reasonable care to retain control of

the private key corresponding to the public key listed in his Digital

Signature Certificate and take all steps to prevent its disclosure to a

person not authorised to affix the digital signature of the subscriber.

(2) If the private key corresponding to the public key listed in the

Digital Signature Certificate has been compromised, then, the subscriber

shall communicate the same without any delay to the Certifying Authority

in such manner as may be specified by .the regulations.

Explanation. For the removal of doubts, it is hereby declared that the

subscriber shall be liable till he has informed the Certifying Authority

that the private key has been compromised.

IX - PENALTIES AND ADJUDICATION

43. Penalty for damage to computer, computer system, etc.

If any person without permission of the owner or any other person who is

incharge of a computer, computer system or computer network, —

(a) accesses or secures access to such computer, computer system or

computer network;

(b) downloads, copies or extracts any data, computer data base or

information from such computer, computer system or computer network

including information or data held or stored in any removable storage

medium;

computer virus into any computer, computer system or computer network;

(d) damages or causes to be damaged any computer, computer system or

computer network, data, computer data base or any other programmes

residing in such computer, computer system or computer network;

(e) disrupts or causes disruption of any computer, computer system or

computer network;

(f) denies or causes the denial of access to any person authorised to

access any computer, computer system or computer network by any means;

(g) provides any assistance to any person to facilitate access to a

computer, computer system or computer network in contravention of the

provisions of this Act, rules or regulations made thereunder;

(h) charges the services availed of by a person to the account of another

person by tampering with or manipulating any computer, computer system, or

computer network, e shall be liable to pay damages by way of compensation

not exceeding one crore rupees to the person so affected.

Explanation.—For the purposes of this section,—

(i) "computer contaminant" means any set of computer instructions that are

designed

(a) to modify, destroy, record, transmit data or programme residing within

a computer, computer system or computer network; or

(b) by any means to usurp the normal operation of the computer, computer

system, or computer network;

(ii) "computer data base" means a representation of information,

knowledge, facts, concepts or instructions in text, image, audio, video

that are being prepared or have been prepared in a formalised manner or

have been produced by a computer, computer system or computer network and

are intended for use in a computer, computer system or computer network;

(iii) "computer virus" means any computer instruction, information, data

or programme that destroys, damages, degrades or adversely affects the

performance of a computer resource or attaches itself to another computer

resource and operates when a programme, data or instruction is executed or

some other event takes place in that computer resource;

(iv) "damage" means to destroy, alter, delete, add, modify or rearrange

any computer resource by any means.

44. Penalty for failure to furnish information return, etc.

If any person who is required under this Act or any rules or regulations

made thereunder to —

(a) furnish any document, return or report to the Controller or the

Certifying Authority fails to furnish the same, he shall be liable to a

penalty not exceeding one lakh and fifty thousand rupees for each such

failure;

(b) file any return or furnish any information, books or other documents

within the time specified therefor in the regulations fails to file return

or furnish the same within the time specified therefor in the regulations,

he shall be liable to a penalty not exceeding five thousand rupees for

every day during which such failure continues;

shall be liable to a penalty not exceeding ten thousand rupees for every

day during which the failure continues.

45. Residuary penalty.

Whoever contravenes any rules or regulations made under this Act, for .the

contravention of which no penalty has been separately provided, shall be

liable to pay a compensation not exceeding twenty-five thousand rupees to

the person affected by such contravention or a penalty not exceeding

twenty-five thousand rupees.

46. Power to adjudicate.

(1) For the purpose of adjudging under this Chapter whether any person has

committed a contravention of any of the provisions of this Act or of any

rule, regulation, direction or order made thereunder the Central

Government shall, subject to the provisions of sub-section (3), appoint

any officer not below the rank of a Director to the Government of India or

an equivalent officer of a State Government to be an adjudicating officer

for holding an inquiry in the manner prescribed by the Central Government.

(2) The adjudicating officer shall, after giving the person referred to in

sub-section (1) a reasonable opportunity for making representation in the

matter and if, on such inquiry, he is satisfied that the person has

committed the contravention, he may impose such penalty or award such

compensation as he thinks fit in accordance with the provisions of that

section.

(3) No person shall be appointed as an adjudicating officer unless he

possesses such experience in the field of Information Technology and legal

or judicial experience as may be prescribed by the Central Government.

(4) Where more than one adjudicating officers are appointed, the Central

Government shall specify by order the matters and places with respect to

which such officers shall exercise their jurisdiction.

(5) Every adjudicating officer shall have the powers of a civil court

which are conferred oh the Cyber Appellate Tribunal under sub-section (2)

of section 58, and

(a) all proceedings before it shall be deemed to be judicial proceedings

within the meaning of sections 193 and 228 of the Indian Penal Code;

(b) shall be deemed to be a civil court for the purposes of sections 345

and 346 of the Code of Criminal Procedure, 1973.

47. Factors to be taken into account by the adjudicating officer.

While adjudging the quantum of compensation under this Chapter, the

adjudicating officer shall have due regard to the following factors,

namely :

(a) the amount of gain of unfair advantage, wherever quantifiable, made as

a result of the default;

(b) the amount of loss caused to any person as a result of the default;

X - THE CYBER REGULATION APPELLATE TRIBUNAL

48. Establishment of Cyber Appellate Tribunal.

(1) The Central Government shall, by notification, establish one or more

appellate tribunals to be known as the Cyber Regulations Appellate

Tribunal.

(2) The Central Government shall also specify, in the notification

referred to in sub-section (1), the matters and places in relation to

which the Cyber Appellate Tribunal may exercise jurisdiction.

49. Composition of Cyber Appellate Tribunal.

A Cyber Appellate Tribunal shall consist of one person only (hereinafter

referred to as the Residing Officer of the Cyber Appellate Tribunal) to be

appointed, by notification, by the Central Government.

50. Qualifications for appointment as Presiding Officer of the Cyber

Appellate Tribunal.

A person shall not be qualified for appointment as the Presiding Officer

of a Cyber Appellate Tribunal unless he

(a) is, or has been. or is qualified to be, a Judge of a High Court; or

(b) is or has been a member of the Indian Legal Service and is holding or

has held a post in Grade I of that Service for at least three years.

51. Term of office.

The Presiding Officer of a Cyber Appellate Tribunal shall hold office for

a term of five years from the date on which he enters upon his office or

until he attains the age of sixty-five years, whichever is earlier.

52. Salary, allowances and other terms and conditions of service of

Presiding Officer.

The salary and allowances payable to, and the other terms and conditions

of service including pension, gratuity and other retirement benefits of.

the Presiding Officer of a Cyber Appellate Tribunal shall be such as may

be prescribed :

Provided that neither the salary and allowances nor the other terms and

conditions of service of the Presiding Officer shall be varied to his

disadvantage after appointment.

53. Filling up of vacancies.

If, for reason other than temporary absence, any vacancy occurs in the

office n the Presiding Officer of a Cyber Appellate Tribunal, then the

Central Government shall appoint another person in accordance with the

provisions of this Act to fill the vacancy and the proceedings may be

continued before the Cyber Appellate Tribunal from the stage at which the

vacancy is filled.

54. Resignation and removal.

(1) The Presiding Officer of a Cyber Appellate Tribunal may, by notice in

writing under his hand addressed to the Central Government, resign his

office :

Provided that the said Presiding Officer shall, unless he is permitted by

the Central Government to relinquish his office sooner, continue to hold

office until the expiry of three months from the date of receipt of such

notice or until a person duly appointed as his successor enters upon his

office or until the expiry of his term of office, whichever is the

earliest.

(2) The Presiding Officer of a Cyber Appellate Tribunal shall not be

removed from his office except by an order by the Central Government on

the ground of proved misbehaviour or incapacity after an inquiry made by a

Judge of the Supreme Court in which the Presiding Officer concerned has

been informed of the charges against him and given a reasonable

opportunity of being heard in respect of these charges.

(3) The Central Government may, by rules, regulate the procedure for the

investigation of misbehaviour or incapacity of the aforesaid Presiding

Officer.

55. Orders constituting Appellate Tribunal to be final and not to

invalidate its proceedings.

No order of the Central Government appointing any person as the Presiding

Officer of a Cyber Appellate Tribunal shall be called in question in any

manner and no act or proceeding before a Cyber Appellate Tribunal shall be

called in question in any manner on the ground merely of any defect in the

constitution of a Cyber Appellate Tribunal.

56. Staff of the Cyber Appellate Tribunal.

(1) The Central Government shall provide the Cyber Appellate Tribunal with

such officers and employees as that Government may think fit.

(2) The officers and employees of the Cyber Appellate Tribunal shall

discharge their functions under general superintendence of the Presiding

Officer.

(3) The salaries, allowances and other conditions of service of the

officers and employees or' the Cyber Appellate Tribunal shall be such as

may be prescribed by the Central Government.

57. Appeal to Cyber Appellate Tribunal.

(1) Save as provided in sub-section (2), any person aggrieved by an order

made by Controller or an adjudicating officer under this Act may prefer an

appeal to a Cyber Appellate Tribunal having jurisdiction in the matter.

(2) No appeal shall lie to the Cyber Appellate Tribunal from an order made

by an adjudicating officer with the consent of the parties.

(3) Every appeal under sub-section (1) shall be filed within a period of

tony-five days from the date on which a copy of the order made by the

Controller or the adjudicating officer is received by the person aggrieved

and it shall be in such form and be accompanied by such fee as may be

prescribed :

Provided that the Cyber Appellate Tribunal may entertain an appeal after

the expiry of the said period of tony-five days if it is satisfied that

there was sufficient cause tor not filing it within that period.

(4) On receipt of an appeal under sub-section (1), the Cyber Appellate

Tribunal may, after giving the parties to the appeal, an opportunity of

being heard, pass such orders thereon as it thinks fit, confirming,

modifying or setting aside the order appealed against.

(5) The Cyber Appellate Tribunal shall send a copy of every order made by

it to the parties to the appeal and to the concerned Controller or

adjudicating officer.

(6) The appeal filed before the Cyber Appellate Tribunal under sub-section

(1) shall be dealt with by it as expeditiously as possible and endeavour

shall be made by it to dispose of the appeal finally within six months

from the date of receipt of the appeal.

58. Procedure and powers of the Cyber Appellate Tribunal.

(1) The Cyber Appellate Tribunal shall not be bound by the procedure laid

down by the Code of civil Procedure, 1908 but shall be guided by the

principles of natural justice and, subject to the other provisions of this

Act and of any rules, the Cyber Appellate Tribunal shall have powers to

regulate its own procedure including the place at which it shall have its

sittings.

(2) The Cyber Appellate Tribunal shall have, for the purposes of

discharging its functions under this Act, the same powers as are vested in

a civil court under the Code of Civil Procedure, 1908, while trying a

suit, in respect of the following matters, namely :—

(a) summoning and enforcing the attendance of any person and examining him

on oath;

(b) requiring the discovery and production of documents or other

electronic records;

(d) issuing commissions for the examination of witnesses or documents;

(e) reviewing its decisions;

(f) dismissing an application for default or deciding it ex pane;

(g) any other matter which may be prescribed.

(3) Every proceeding before the Cyber Appellate Tribunal shall be deemed

to be a judicial proceeding within the meaning of sections 193 and 228,

and for the purposes of section 196 of the Indian Penal Code and the Cyber

Appellate Tribunal shall be deemed to be a civil court for the purposes of

section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973.

59. Right to legal representation.

The appellant may either appear in person or authorise one or more legal

practitioners or any of its officers to present his or its case before the

Cyber Appellate Tribunal.

60. Limitation.

The provisions of the Limitation Act, 1963, shall, as far as may be, apply

to an appeal made to the Cyber Appellate Tribunal.

61. Civil court not to have jurisdiction.

No court shall have jurisdiction to entertain any suit or proceeding in

respect of any matter which an adjudicating officer appointed under this

Act or the Cyber Appellate Tribunal constituted under this Act is

empowered by or under this Act to determine and no injunction shall be

granted by any court or other authority in respect of any action taken or

to be taken in pursuance of any power conferred by or under this Act.

62. Appeal to High Court.

Any person aggrieved by any decision or order of the Cyber Appellate

Tribunal may file an appeal to the High Court within sixty days from the

date of communication of the decision or order of the Cyber Appellate

Tribunal to him on any question of fact or law arising out of such order

Provided that the High Court may, if it is satisfied that the appellant

was prevented by sufficient cause from filing the appeal within the said

period, allow it to be filed within a further period not exceeding sixty

days.

63. Compounding of contraventions.

(1) Any contravention under this Chapter may, either before or after the

institution of adjudication proceedings, be compounded by the Controller

or such other officer as may be specially authorised by him in this behalf

or by the adjudicating officer, as the case may be, subject to such

conditions as the Controller or such other officer or the adjudicating

officer may specify :

Provided that such sum shall not, in any case, exceed the maximum amount

of the penalty which may be imposed under this Act for the contravention

so compounded.

(2) Nothing in sub-section (1) shall apply to a person who commits the

same or similar contravention within a period of three years from the date

on which the first contravention, committed by him, was compounded.

Explanation. For the purposes of this sub-section, any second or

subsequent contravention committed after the expiry of a period of three

years from the date on which the contravention was previously compounded

shall be deemed to be a first contravention.

(3) Where any contravention has been compounded under sub-section (1), no

proceeding or further proceeding, as the case may be, shall be taken

against the person guilty of such contravention in respect of the

contravention so compounded.

64. Recovery of penalty.

A penalty imposed under this Act, if it is not paid, shall be recovered as

an arrear of land revenue and the licence or the Digital Signature

Certificate, as the case may be, shall be suspended till the penalty is

paid.

XI - OFFENCES

65. Tampering with computer source documents.

Whoever knowingly or intentionally conceals, destroys or alters or

intentionally or knowingly causes another to conceal, destroy or alter any

computer source code used for a computer, computer programme, computer

system or computer network, when the computer source code is required to

be kept or maintained by law for the time being in force, shall be

punishable with imprisonment up to three years, or with fine which may

extend up to two lakh rupees, or with both.

Explanation.—For the purposes of this section, "computer source code"

means the listing of programmes, computer commands, design and layout and

programme analysis of computer resource in any form.

66. Hacking with computer system.

(1) Whoever with the intent to cause or knowing that he is likely to cause

wrongful loss or damage to the public or any person destroys or deletes or

alters any information residing in a computer resource or diminishes its

value or utility or affects it injuriously by any means, commits hack :

(2) Whoever commits hacking shall be punished with imprisonment up to

three years, or with fine which may extend upto two lakh rupees, or with

both.

67. Publishing of information which is obscene in electronic form.

Whoever publishes or transmits or causes to be published in the electronic

form, any material which is lascivious or appeals to the prurient interest

or if its effect is such as to tend to deprave and corrupt persons who are

likely, having regard to all relevant circumstances, to read, see or hear

the matter contained or embodied in it, shall be punished on first

conviction with imprisonment of either description for a term which may

extend to five years and with fine which may extend to one lakh rupees and

in the event of a second or subsequent conviction with imprisonment of

either description for a term which may extend to ten years and also with

fine which may extend to two lakh rupees.

68. Power of Controller to give directions.

(1) The Controller may, by order, direct a Certifying Authority or any

employee of such Authority to take such measures or cease carrying on such

activities as specified in the order if those are necessary to ensure

compliance with the provisions of this Act, rules or any regulations made

thereunder.

(2) Any person who fails to comply with any order under sub-section (1)

shall be guilty of an offence and shall be liable on conviction to

imprisonment for a term not exceeding three years or to a Fine not

exceeding two lakh rupees or to both.

69. Directions of Controller to a subscriber to extend facilities to

decrypt information.

(1) If the Controller is satisfied that it is necessary or expedient so to

do in the interest of the sovereignty or integrity of India, the security

of the State, friendly relations with foreign Stales or public order or

for preventing incitement to the commission of any cognizable offence, for

reasons to be recorded in writing, by order, direct any agency of the

Government to intercept any information transmitted through any computer

resource.

(2) The subscriber or any person incharge of the computer resource shall,

when called upon by any agency which has been directed under sub-section

(1), extend all facilities and technical assistance to decrypt the

information.

(3) The subscriber or any person who fails to assist the agency referred

to in sub-section (2) shall be punished with an imprisonment for a term

which may extend to seven years.

70. Protected system.

(1) The appropriate Government may, by notification in the Official

Gazette, declare that any computer, computer system or computer network to

be a protected system.

(2) The appropriate Government may, by order in writing, authorise the

persons who are authorised to access protected systems notified under

sub-section (1).

(3) Any person who secures access or attempts to secure access to a

protected system in contravention of the provisions of this section shall

be punished with imprisonment of either description for a term which may

extend to ten years and shall also be liable to fine.

71. Penalty for misrepresentation.

Whoever makes any misrepresentation to, or suppresses any material fact

from, the Controller or the Certifying Authority for obtaining any licence

or Digital Signature Certificate, as the case may be. shall be punished

with imprisonment for a term which may extend to two years, or with fine

which may extend to one lakh rupees, or with both.

72. Penalty for breach of confidentiality and privacy.

Save as otherwise provided in this Act or any other law for the time being

in force, any person who, in pursuance of any of the powers conferred

under this Act, rules or regulations made thereunder, has secured access

to any electronic record, book, register, correspondence, information,

document or other material without the consent of the person concerned

discloses such electronic record, book. register, correspondence,

information, document or other material to any other person shall be

punished with imprisonment for a term which may extend to two years, or

with fine which may extend to one lakh rupees, or with both.

73. Penalty for publishing Digital Signature Certificate false in certain

particulars.

(1) No person shall publish a Digital Signature Certificate or otherwise

make it available to any other person with the knowledge that

(a) the Certifying Authority listed in the certificate has not issued it;

(b) the subscriber listed in the certificate has not accepted it; or

is for the purpose of verifying a digital signature created prior to such

suspension or revocation.

(2) Any person who contravenes the provisions of sub-section (1) shall be

punished with imprisonment for a term which may extend to two years, or

with fine which may extend to one lakh rupees, or with both.

74. Publication for fraudulent purpose.

Whoever knowingly creates, publishes or otherwise makes available a

Digital Signature Certificate for any fraudulent or unlawful purpose shall

be punished with imprisonment for a term which may extend to two years, or

with fine which may extend to one lakh rupees, or with both.

75. Act to apply for offence or contravention committed outside India.

(1) Subject to the provisions of sub-section (2), the provisions of this

Act shall apply also to any offence or contravention committed outside

India by any person irrespective of his nationality.

(2) For the purposes of sub-section (1), this Act shall apply to an

offence or contravention committed outside India by any person if the act

or conduct constituting the offence or contravention involves a computer,

computer system or computer network located in India.

76. Confiscation.

Any computer, computer system, floppies, compact disks, tape drives or any

other accessories related thereto, in respect of which any provision of

this Act. rules, orders or regulations made thereunder has been or is

being contravened, shall be liable to confiscation :

Provided that where it is established to the satisfaction of the court

adjudicating the confiscation that the person in whose possession, power

or control of any such computer, computer system, floppies, compact disks,

tape drives or any other accessories relating thereto is found is not

responsible for the contravention of the provisions of this Act, rules,

orders or regulations made thereunder, the court may, instead of making an

order for confiscation of such computer, computer system, floppies,

compact disks, tape drives or any other accessories related thereto, make

such other order authorised by this Act against the person contravening of

the provisions of this Act, rules, orders or regulations made thereunder

as it may think fit.

77. Penalties or confiscation not to interfere with other punishments.

No penalty imposed or confiscation made under this Act shall prevent the

imposition of any other punishment to which the person affected thereby is

liable under any other law for the time being in force.

78. Power to investigate offences.

Notwithstanding anything contained in the Code of Criminal Procedure,

1973, a police officer not below the rank of Deputy Superintendent of

Police shall investigate any offence under this Act.

XII - NETWORK SERVICE PROVIDERS NOT TO BE LIABLE IN CERTAIN CASES

79. Network service providers not to be liable in certain cases.

For the removal of doubts, it is hereby declared that no person providing

any service as a network service provider shall be liable under this Act,

rules or regulations made thereunder for any third party information or

data made available by him if he proves that the offence or contravention

was committed without his knowledge or that he had exercised all due

diligence to prevent the commission of such offence or contravention.

Explanation.—For the purposes of this section, —

(a) "network service provider" means an intermediary;

(b) "third party information" means any information dealt with by a

network service provider in his capacity as an intermediary;

XIII - MISCELLANEOUS

80. Power of police officer and other officers to enter, search, etc.

(1) Notwithstanding anything contained in the Code of Criminal Procedure,

1973, any police officer, not below the rank of a Deputy Superintendent of

Police, or any other officer of the Central Government or a State

Government authorised by the Central Government in this behalf may enter

any public place and search and arrest without warrant any person found

therein who is reasonably suspected or having committed or of committing

or of being about to commit any offence under this Act.

Explanation.—For the purposes of this sub-section, the expression "public

place" includes any public conveyance, any hotel, any shop or any other

place intended for use by, or accessible to the public.

(2) Where any person is arrested under sub-section (1) by an officer other

than a police officer, such officer shall, without unnecessary delay, take

or send the person arrested before a magistrate having jurisdiction in the

case or before the officer-in-charge of a police station.

(3) The provisions of the Code of Criminal Procedure, 1973 shall, subject

to the provisions of this section, apply, so far as may be, in relation to

any entry, search or arrest, made under this section.

81. Act to have overriding effect.

The provisions of this Act shall have effect notwithstanding anything

inconsistent therewith contained in any other law for the time being in

force.

82. Controller, Deputy Controller and Assistant Controllers to be public

servants.

The Presiding Officer and other officers and employees of a Cyber

Appellate Tribunal, the Controller, the Deputy Controller and the

Assistant Controllers shall be deemed to be public servants within the

meaning of section 21 of the Indian Penal Code.

83. Power to give directions.

The Central Government may give directions to any State Government as to

the carrying into execution in the State of any of the provisions of this

Act or of any rule, regulation or order made thereunder.

84. Protection of action taken in good faith.

No suit, prosecution or other legal proceeding shall lie against the

Central Government, the State Government, the Controller or any person

acting on behalf of him, the Presiding Officer, adjudicating officers and

the staff of the Cyber Appellate Tribunal for anything which is in good

faith done or intended to be done in pursuance of this Act or any rule,

regulation or order made thereunder.

85. Offences by companies.

(1) Where a person committing a contravention of any of the provisions of

this Act or of any rule, direction or order made thereunder is a company,

every person who, at the time the contravention was committed, was in

charge of, and was responsible to, the company for the conduct of business

of the company as well as the company, shall be guilty of the

contravention and shall be liable to be proceeded against and punished

accordingly :

Provided that nothing contained in this sub-section shall render any such

person liable to punishment if he proves that the contravention took place

without his knowledge or that he exercised all due diligence to prevent

such contravention.

(2) Notwithstanding anything contained in sub-section (1), where a

contravention of any of the provisions of this Act or of any rule,

direction or order made thereunder has been committed by a company and it

is proved that the contravention has taken place with the consent or

connivance of, or is attributable to any neglect on the part of, any

director, manager, secretary or other officer of the company, such

director, manager, secretary or other officer shall also be deemed to be

guilty of the contravention and shall be liable to be proceeded against

and punished accordingly.

Explanation.—For the purposes of this section,—

(i) "company" means any body corporate and includes a firm or other

association of individuals; and

(ii) "director", in relation to a firm, means a partner in the firm.

86. Removal of difficulties.

(1) If any difficulty arises in giving effect to the provisions of this

Act, the Central Government may, by order published in the Official

Gazette, make such provisions not inconsistent with the provisions of this

Act as appear to it to be necessary or expedient for removing the

difficulty :

Provided that no order shall be made under this section after the expiry

of a period of two years from the commencement of this Act.

(2) Every order made under this section shall be laid, as soon as may be

after it is made, before each House of Parliament.

87. Power of Central Government to make rules.

(1) The Central Government may, by notification in the Official Gazette

and in the Electronic Gazette make rules to carry out the provisions of

this Act.

(2) In particular, and without prejudice to the generality of the

foregoing power, such rules may provide for all or any of the following

mailers, namely :

(a) the manner in which any information or matter may be authenticated by

means of digital signature under section 5;

(b) the electronic form in which filing, issue, grant or payment shall be

effected under sub-section (1) of section 6;

issued and the method of payment under sub-section (2) of section 6;

(d) the matters relating to the type of digital signature, manner and

format in which it may be affixed under section 10;

(e) the security procedure for the purpose of creating secure electronic

record and secure digital signature under section 16;

(f) the qualifications, experience and terms and conditions of service of

Controller, Deputy Controllers and Assistant Controllers under section 17;

(g) other standards to be observed by the Controller under clause (b) of

subsection (2) of section 20;

(h) the requirements which an applicant must fulfil under sub-section (2)

of section 21;

(i) the period of validity of licence granted under clause (a) of

sub-section (3) of section 21;

(j) the form in which an application for licence may be made under

sub-section (1) of section 22;

(k) the amount of fees payable under clause (c) of sub-section (2) of

section 22;

(l) such other documents which shall accompany an application for licence

under clause (a) of sub-section (2) of section 22;

(m) the form and the fee for renewal of a licence and the fee payable

there of under section 23;

(n) the form in which application for issue of a Digital Signature

Certificate may be made under sub-section (1) of section 35;

(o) the fee to be paid to the Certifying Authority for issue of a Digital

Signature Certificate under sub-section (2) of section 35;

(p) the manner in which the adjudicating officer shall hold inquiry under

subsection (1) of section 46;

(q) the qualification and experience which the adjudicating officer shall

possess under sub-section (3) of section 46;

(r) the salary, allowances and the other terms and conditions of service

of the Presiding Officer under section 52;

(s) the procedure for investigation of misbehaviour or incapacity of the

Presiding Officer under sub-section (3) of section 54;

(t) the salary and allowances and other conditions of service of other

officers and employees under sub-section (3) of section 56;

(u) the form in which appeal may be filed and the fee thereof under sub

-section (3) of section 57;

(v) any other power of a civil court required to be prescribed under

clause (g) of sub-section (2) of section 58; and

(w) any other matter which is required to be, or may be, prescribed.

(3) Every notification made by the Central Government under clause (f) of

subsection (4) of section 1 and every rule made by it shall be laid, as

soon as may be after it is made, before each House of Parliament, while it

is in session, for a total period of thirty days which may be comprised in

one session or in two or more successive sessions, and if, before the

expiry of the session immediately following the session or the successive

sessions aforesaid, both Houses agree in making any modification in the

notification or the rule or both Houses agree that the notification or the

rule should not be made, the notification or the rule shall thereafter

have effect only in such modified form or be of no effect, as the case may

be; so, however, that any such modification or annulment shall be without

prejudice to the validity of anything previously done under that

notification or rule.

88. Constitution of Advisory Committee.

(1) The Central Government shall, as soon as may be after the commencement

of this Act, constitute a Committee called the Cyber Regulations Advisory

Committee.

(2) The Cyber Regulations Advisory Committee shall consist of a

Chairperson and such number of other official and non-official members

representing the interests principally affected or having special

knowledge of the subject-matter as the Central Government may deem fit.

(3) The Cyber Regulations Advisory Committee shall advise

(a) the Central Government either generally as regards any rules or for

any other purpose connected with this Act;

(b) the Controller in framing the regulations under this Act.

(4) There shall be paid to the non-official members of such Committee such

travelling and other allowances as the Central Government may fix.

89. Power of Controller to make regulations.

(1) The Controller may, after consultation with the Cyber Regulations

Advisory Committee and with the previous approval of the Central

Government, by notification in the Official Gazette, make regulations

consistent with this Act and the rules made thereunder to carry out the

purposes of this Act.

(2) In particular, and without prejudice to the generality of the

foregoing power, such regulations may provide for all or any of the

following matters, namely :

(a) the particulars relating to maintenance of data-base containing the

disclosure record of every Certifying Authority under clause (m) of

section 18;

(b) the conditions and restrictions subject to which the Controller may

recognise any foreign Certifying Authority under sub-section (1) of

section 19;

under clause (c) of sub-section (3) of section 21;

(d) other standards to be observed by a Certifying Authority under clause

(d) of section 30;

(e) the manner in which the Certifying Authority shall disclose the

matters specified in sub-section (1) of section 34;

(f) the particulars of statement which shall accompany an application

under sub-section (3) of section 35;

(g) the manner in which the subscriber shall communicate the compromise of

private key to the certifying Authority under sub-section (2) of section

42.

(3) Every regulation made under this Act shall be laid, as soon as may be

after it is made, before each House of Parliament, while it is in session,

for a total period of thirty days which may be comprised in one session or

in two or more successive sessions, and if, before the expiry of the

session immediately following the session or the successive sessions

aforesaid, both Houses agree in making any modification in the regulation

or both Houses agree that the regulation should not be made, the

regulation shall thereafter have effect only in such modified form or he

of no effect, as the case may be; so, however, that any such modification

or annulment shall be without prejudice to the validity of anything

previously done under (hat regulation.

90. Power of State Government to make rules.

(1) The State Government may, by notification in the Official Gazette,

make rules to carry out the provisions of this Act.

(2) In particular, and without prejudice to the generality of the

foregoing power, such rules may provide for all or any of the following

matters, namely :

(a) the electronic form in which filing, issue, grant receipt or payment

shall be effected under sub-section (1) of section 6;

(b) for matters specified in sub-section (2) of section 6;

State Government.

(3) Every rule made by the State Government under this section shall be

laid, as soon as may be after it is made, before each House of the State

Legislature where it consists of two Houses, or where such Legislature

consists of one House, before that House.

91. Amendment of Act 45 of 1860.

The Indian Penal Code shall be amended in the manner specified in the

First Schedule to this Act.

92. Amendment of Act 1 of 1872.

The Indian Evidence Act, 1872 shall be amended in the manner specified in

the Second Schedule to this Act.

93. Amendment of Act 18 of 1891.

The Bankers' Books Evidence Act, 1891 shall be amended in the manner

specified in the Third Schedule to this Act.

94. Amendment of Act 2 of 1834.

The Reserve Bank of India Act, 1934 shall be amended in the manner

specified in the Fourth Schedule to this Act.

SCHEDULES

The First Schedule - Amendments to the Indian Penal Code, 1860.

(See section 91)

Amendments to the Indian Penal Code

(45 of 1860)

1. After section 29, the following section shall be inserted, namely :

Electronic record.

"29A. The words "electronic record" shall have the meaning assigned to

them in clause (t) of sub-section (1) of section 2 of the Information

Technology Act, 2000."

2. In section 167, for the words "such public servant, charged with the

preparation or translation of any document, frames or translates that

document", the words "such public servant, charged with the preparation or

translation of any document or electronic record, frames, prepares or

translates that document or electronic record" shall be substituted.

3. In section 172, for the words "produce a document in a Court of

Justice", the words "produce a document or an electronic record in a Court

of Justice" shall be substituted.

4. In section 173, for the words "to produce a document in a Court of

Justice", the words "to produce a document or electronic record in a Court

of Justice" shall be substituted.

5. In section 175, for the word "document" at both the places where it

occurs, the words "document or electronic record" shall be substituted.

6. In section 192, for the words "makes any false entry in any book or

record, or makes any document containing a false statement", the words

"makes any false entry in any book or record, or electronic record or

makes any document or electronic record containing a false statement"

shall be substituted.

7. In section 204, for the word "document" at both the places where it

occurs, the words "document or electronic record" shall be substituted.

8. In section 463, for the words "Whoever makes any false documents or

part of a document with intent to cause damage or injury", the words

"Whoever makes any false documents or false electronic record or part of a

document or electronic record, with intent to cause damage or injury"

shall be substituted.

9. In section 464, —

(a) for the portion beginning with the words "A person is said to make a

false document" and ending with the words "by reason of deception

practised upon him, he does not know the contents of the document or the

nature of the alteration", the following shall be substituted, namely :—

"A person is said to make a false document or false electronic record

First Who dishonestly or fraudulently —

(a) makes, signs, seals or executes a document or part of a document;

(b) makes or transmits any electronic record or part of any electronic

record;

(d) makes any mark denoting the execution of a document or the

authenticity of the digital signature,with the intention of causing it to

be believed that such document or part of document, electronic record or

digital signature was made, signed, sealed, executed, transmitted or

affixed by or by the authority of a person by whom or by whose authority

he knows that it was not made, signed, sealed, executed or affixed; or

Secondly Who, without lawful authority, dishonestly or fraudulently, by

cancellation or otherwise, alters a document or an electronic record in

any material part thereof, after it has been made, executed or affixed

with digital signature either by himself or by any other person, whether

such person be living or dead at the time of such alteration; or

Thirdly Who dishonestly or fraudulently causes any person to sign, seal,

execute or alter a document or an electronic record or to affix his

digital signature on any electronic record knowing that such person by

reason of unsoundness of mind or intoxication cannot, or that by reason of

deception practised upon him, he does not know the contents of the

document or electronic record or the nature of the alteration. " ;

(b) after Explanation 2, the following Explanation shall be inserted at

the end, namely :—

'Explanation 3.—For the purposes of this section, the expression "affixing

digital signature" shall have the meaning assigned to it in clause (d) of

subsection (1) of section 2 of the Information Technology Act, 2000.'.

10. In section 466,—

(a) for the words "Whoever forges a document", the words "Whoever forges a

document or an electronic record" shall be substituted;

(b) the following Explanation shall be inserted at the end, namely :—

'Explanation.—For the purposes of this section, "register" includes any

list, data or record of any entries maintained in the electronic form as

defined in clause (r) of sub-section (1) of section 2 of the Information

Technology Act, 2000.'.

11. In section 468, for the words "document forged", the words "document

or electronic record forged" shall be substituted.

12. In section 469, for the words "intending that the document forged",

the words "intending that the document or electronic record forged" shall

be substituted.

13. In section 470, for the word "document" in both the places where it

occurs, the words "document or electronic record" shall be substituted.

14. In section 471, for the word "document" wherever it occurs, the words

"document or electronic record" shall be substituted.

15. In section 474, for the portion beginning with the words "Whoever has

in his possession any document" and ending with the words "if the document

is one of the description mentioned in section 466 of this Code", the

following shall be substituted, namely : —

"Whoever has in his possession any document or electronic record, knowing

the same to be forged and intending that the same shall fraudulently or

dishonestly be used as a genuine, shall, if the document or electronic

record is one of the description mentioned in section 466 of this Code.".

16. In section 476, for the words "any document", the words "any document

or electronic record" shall be substituted.

17. In section 477A, for the words "book, paper, writing" at both the

places where they occur, the words "book, electronic record, paper,

writing" shall be substituted.

The Second Schedule - Amendments to the Indian Evidence Act, 1872.

(See section 92)

Amendments to the Indian Evidence Act, 1872

(1 of 1872)

1. In section 3,—

(a) in the definition of "Evidence", for the words "all documents produced

for the inspection of the Court", the words "all documents including

electronic records produced for the inspection of the Court" shall be

substituted;

(b) after the definition of "India", the following shall be inserted,

namely: 'the expressions "Certifying Authority", "digital signature",

"Digital Signature Certificate", "electronic form", "electronic records",

"information", "secure electronic record", "secure digital signature" and

"subscriber" shall have the meanings respectively assigned to them in the

Information Technology Act, 2000.'.

2. In section 17, for the words "oral or documentary,", the words "oral or

documentary or contained in electronic form" shall be substituted.

3.After section 22, the following section shall be inserted, namely: —

When oral admission as to contents of electronic records are relevant.

"22A. Oral admissions as to the contents of electronic records are not

relevant, unless the genuineness of the electronic record produced is in

question.".

4. In section 34, for the words "Entries in the books of account", the

words "Entries in the books of account, including those maintained in an

electronic form" shall be substituted.

5. In section 35, for the word "record", in both the places where it

occurs, the words "record or an electronic record" shall be substituted.

6. For section 39, the following section shall be substituted, namely: —

What evidence to be given when statement forms part of a conversation,

document, electronic record, book or series of letters or papers.

"39. When any statement of which evidence is given forms part of a longer

statement, or of a conversation or pan of an isolated document, or is

contained in a document which forms part of a book, or is contained in

part of electronic record or of a connected series of letters or papers,

evidence shall be given of so much and no more of the statement,

conversation, document, electronic record, book or series of letters or

papers as the Court considers necessary in that particular case to the

full understanding of the nature and effect of the statement, and of the

circumstances under which it was made.".

7. After section 47, the following section shall be inserted, namely: —

Opinion as to digital signature where relevant.

"47A. When the Court has 10 form an opinion as to the digital signature of

any person, the opinion of the Certifying Authority which has issued the

Digital Signature Certificate is a relevant fact.".

8. In section 59, for the words "contents of documents" the words

"contents of documents or electronic records" shall be substituted.

9. After section 65, the following sections shall be inserted, namely: —

Special provisions as to evidence relating to electronic record.

'65A. The contents of electronic records may be proved in accordance with

the provisions of section 65B.

Admissibility of electronic records.

65B. (1) Notwithstanding anything contained in this Act, any information

contained in an electronic record which is printed on a paper, stored,

recorded or copied in optical or magnetic media produced by a computer

(hereinafter referred to as the computer output) shall be deemed to be

also a document, if the conditions mentioned in this section are satisfied

in relation to the information and computer in question and shall be

admissible in any proceedings, without further proof or production of the

original, as evidence of any contents of the original or of any fact

stated therein of which direct evidence would be admissible.

(2) The conditions referred to in sub-section (1) in respect of a computer

output shall be the following, namely: —

(a) the computer output containing the information was produced by the

computer during the period over which the computer was used regularly to

store or process information for the purposes of any activities regularly

carried on over that period by the person having lawful control over the

use of the computer;

(b) during the said period, information of the kind contained in the

electronic record or of the kind from which the information so contained

is derived was regularly fed into the computer in the ordinary course of

the said activities;

operating properly or, if not, then in respect of any period in which it

was not operating properly or was out of operation during that part of the

period, was not such as to affect the electronic record or the accuracy of

its contents; and

(d) the information contained in the electronic record reproduces or is

derived from such information fed into the computer in the ordinary course

of the said activities.

(3) Where over any period, the function of storing or processing

information for the purposes of any activities regularly carried on over

that period as mentioned in clause (a) of sub-section (2) was regularly

performed by computers, whether—

(a) by a combination of computers operating over that period; or

(b) by different computers operating in succession over that period; or

that period; or

(d) in any other manner involving the successive operation over that

period, in whatever order, of one or more computers and one or more

combinations of computers, all the computers used for that purpose during

that period shall be treated for the purposes of this section as

constituting a single computer; and references in this section to a

computer shall be construed accordingly.

(4) In any proceedings where it is desired to give a statement in evidence

by virtue of this section, a certificate doing any of the following

things, that is to say, —

(a) identifying the electronic record containing the statement and

describing the manner in which it was produced;

(b) giving such particulars of any device involved in the production of

that electronic record as may be appropriate for the purpose of showing

that the electronic record was produced by a computer;

sub-section (2) relate,

and purporting to be signed by a person occupying a responsible official

position in relation to the operation of the relevant device or the

management of the relevant activities (whichever is appropriate) shall be

evidence of any matter stated in the certificate; and for the purposes of

this sub-section it shall be sufficient for a matter to be stated to the

best of the knowledge and belief of the person stating it.

(5) For the purposes of this section, —

(a) information shall be taken to be supplied to a computer if it is

supplied thereto in any appropriate form and whether it is so supplied

directly or (with or without human intervention) by means of any

appropriate equipment;

(b) whether in the course of activities carried on by any official,

information is supplied with a view to its being stored or processed for

the purposes of those activities by a computer operated otherwise than in

the course of those activities, that information, if duly supplied to that

computer, shall be taken to be supplied to it in the course of those

activities;

whether it was produced by it directly or (with or without human

intervention) by means of any appropriate equipment.

Explanation.—For the purposes of this section any reference to information

being derived from other information shall be a reference to its being

derived therefrom by calculation, comparison or any other process.

10. After section 67, the following section shall be inserted, namely : —

Proof as to digital signature.

"67A. Except in the case of a secure digital signature, if the digital

signature of any subscriber is alleged to have been affixed to an

electronic record the fact that such digital signature is the digital

signature of the subscriber must be proved.".

11. After section 73, the following section shall be inserted, namely: —

Proof as to verification of digital signature.

'73A. In order to ascertain whether a digital signature is that of the

person by whom it purports to have been affixed, the Court may direct—

(a) that person or the Controller or the Certifying Authority to produce

the Digital Signature Certificate;

(b) any other person to apply the public key listed in the Digital

Signature Certificate and verify the digital signature purported to have

been affixed by that person.

Explanation.—For the purposes of this section, "Controller" means the

Controller appointed under sub-section (1) of section 17 of the

Information Technology Act, 2000'.

12. Presumption as to Gazettes in electronic forms.

After section 81, the following section shall be inserted, namely: —

"81A. The Court shall presume the genuineness of every electronic record

purporting to be the Official Gazette, or purporting to be electronic

record directed by any law to be kept by any person, if such electronic

record is kept substantially in the form required by law and is produced

from proper custody.".

13. Presumption as to electronic agreements.

After section 85, the following sections shall be inserted, namely: —

"85A. The Court shall presume that every electronic record purporting to

be an agreement containing the digital signatures of the parties was so

concluded by affixing the digital signature of the parties.

Presumption as to electronic records and digital signatures.

85B. (1) In any proceedings involving a secure electronic record, the

Court shall presume unless contrary is proved, that the secure electronic

record has not been altered since the specific point of time to which the

secure status relates.

(2) In any proceedings, involving secure digital signature, the Court

shall presume unless the contrary is proved that—

(a) the secure digital signature is affixed by subscriber with the

intention of signing or approving the electronic record;

(b) except in the case of a secure electronic record or a secure digital

signature, nothing in this section shall create any presumption relating

to authenticity and integrity of the electronic record or any digital

signature.

Presumption as to Digital Signature Certificates.

85C. The Court shall presume, unless contrary is proved, that the

information listed in a Digital Signature Certificate is correct, except

for information specified as subscriber information which has not been

verified, if the certificate was accepted by the subscriber.".

14. Presumption as to electronic messages.

After section 88, the following section shall be inserted, namely: —

'88A. The Court may presume that an electronic message forwarded by the

originator through an electronic mail server to the addressee to whom the

message purports to be addressed corresponds with the message as fed into

his computer for transmission; but the Court shall not make any

presumption as to the person by whom such message was sent.

Explanation.—For the purposes of this section, the expressions "addressee"

and "originator" shall have the same meanings respectively assigned to

them in clauses (b) and (za) of sub-section (1) of section 2 of the

Information Technology Act, 2000.'.

15. Presumption as to electronic records five years old.

After section 90, the following section shall be inserted, namely: —

"90A. Where any electronic record, purporting or proved to be five years

old, is produced from any custody which the Court in the particular case

considers proper, the Court may presume that the digital signature which

purports to be the digital signature of any particular person was so

affixed by him or any person authorised by him in this behalf.

Explanation.—Electronic records are said to be in proper custody if they

are in the place in which, and under the care of the person with whom,

they naturally be; but no custody is improper if it is proved to have had

a legitimate origin, or the circumstances of the particular case are such

as to render such an origin probable.

This Explanation applies also to section 81A.".

16. For section 131, the following section shall be substituted, namely: —

Production of documents or electronic records which another person, having

possession, could refuse to produce.

"131. No one shall be compelled to produce documents in his possession or

electronic records under his control, which any other person would be

entitled to refuse to produce if they were in his possession or control,

unless such last-mentioned person consents to their production.".

The Third Schedule - Amendments to the Bankers' Books Evidence Act, 1891.

(See section 93)

Amendments to the Bankers' Books Evidence Act, 1891

(18 of 1891)

1. In section 2 —

(a) for clause (3), the following clause shall be substituted, namely :—

'(3) "bankers' books" include ledgers, day-books, cash-books,

account-books and all other books used in the ordinary business of a bank

whether kept in the written form or as printouts of data stored in a

floppy, disc, tape or any other form of electro-magnetic data storage

device;

(b) for clause (8), the following clause shall be substituted, namely:

'(8) "certified copy" means when the books of a bank,—

(a) are maintained in written form, a copy of any entry in such books

together with a certificate written; the foot of such copy that it is a

true copy of such entry, that such entry is contained in one of the

ordinary books of the bank and was made in the usual and ordinary course

of business and that such book is still in the custody of the bank, and

where the copy was obtained by a mechanical or other process which in

itself ensured the accuracy of the copy, a further certificate to that

effect, but where the book from which such copy was prepared has been

destroyed in the usual course of the bank's business after the date on

which the copy had been so prepared, a further certificate to that effect,

each such certificate being dated and subscribed by the principal

accountant or manager of the bank with his name and official title; and

(b) consist of printouts of data stored in a floppy, disc, tape or any

other electro-magnetic data storage device, a printout of such entry or a

copy of such printout together with such statements certified in

accordance with the provisions of section 2A.'.

2. After section 2, the following section shall be inserted, namely:

Conditions in the printout.

"2A. A printout of entry or a copy of printout referred to in sub-section

(8) of section 2 shall be accompanied by the following, namely: —

(a) a certificate to the effect that it is a printout of such entry or a

copy of such printout by the principal accountant or branch manager; and

(b) a certificate by a person in-charge of computer system containing a

brief description of the computer system and the particulars of—

(A) the safeguards adopted by the system to ensure that data is entered or

any other operation performed only by authorised persons;

(B) the safeguards adopted to prevent and detect unauthorised change of

data;

failure or any other reasons;

(D) the manner in which data is transferred from the system to removable

media like floppies, discs, tapes or other electro-magnetic data storage

devices;

(E) the mode of verification in order to ensure that data has been

accurately transferred to such removable media;

(F) the mode of identification of such data storage devices;

(G) the arrangements for the storage and custody of such storage devices;

(H) the safeguards to prevent and detect any tampering with the system;

and

(I) any other factor which will vouch for the integrity and accuracy of

the system.

to the effect that to the best of his knowledge and belief, such computer

system operated properly at the material time, he was provided with all

the relevant data and the printout in question represents correctly, or is

appropriately derived from, the relevant data.".

The Fourth Schedule - Amendment to the Reserve Bank of India Act, 1934.

(See section 94)

Amendment to the Reserve Bank of India Act, 1934

(2 of 1934)

In the Reserve Bank of India Act, 1934, in section 58, in sub-section (2),

after clause (p), the following clause shall be inserted, namely :—

"(pp) the regulation of fund transfer through electronic means between the

banks or between the banks and other financial institutions referred to in

clause (c) of section 45-1, including the laying down of the conditions

subject to which banks and other financial institutions shall participate

in such fund transfers, the manner of such fund transfers and the rights

and obligations of the participants in such fund transfers;".

SUBHASH C. JAIN,

Secy. to the Govt. of India.

PRINTED BY THE MANAGER, GOVERNMENT OF INDIA PRESS (PLU), MINTO ROAD, NEW

DELHI AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI, 2000.

MGIP (PLU) MRND—1359G1—14-6-2000.