Information Technology Act, 2002 -- A Brief Introduction

INFORMATION TECHNOLOGY ACT, 2002

A BRIEF INTRODUCTION

AUTHOR: Rama Krishna Vadlamudi    MUMBAI

June 24th, 2004

• When did the Act come into effect?

It came into effect on 17.10.2000.

• What is the necessity for such a law?

Society is becoming increasingly technology-oriented. Nothing moves without the aid of computers and telecommunications, these days. As part of the National Information Technology Policy (NITP), the Government wants to deal with the citizens electronically. Lot of developments are taking place in regard to E-Commerce and E-Business in India. To avoid any legal complications or litigations in such financial transactions, the Government had felt the need for Cyber Laws. Banking is going to change a lot with the advent of this Act. It has ushered in a lot of transformation in Banking.

• What are the areas to which this Act  does not apply?

This Act does not apply to-

• a negotiable instrument
• a power-of-attorney
• a trust
• a will
• a mortgage deed
• any document/transaction as may be notified by the Central Government

• What are the main features of this Act?

Because of this Act, electronic records like, floppies, compact discs, microfilms, magnetic films, hard disk or any such electronic devices, can be produced in a court of law as evidence. From now onwards, any evidence need not be in a typewritten, handwritten or printed paper - it can be in an electronic form.

With the advent of this Act, any document or record or information can be retained in the electronic form.

Now this Act has come into effect, an electronic record can be affixed with a Digital Signature.

Heavy penalty can be imposed for those indulging in computer crimes and hacking.

If any person transmits obscene material in an electronic form, he/she can be punishable with imprisonment and/or heavy penalty.

• What are the Acts amended as part of this IT Act?

• Indian Penal Code
• Indian Evidence Act
• Bankers’ Book Evidence Act and
• Reserve Bank of India Act

• How is an electronic record authenticated?

An electronic record may be authenticated by means of affixing a “Digital Signature.”

• What is a “Digital Signature?”

A Digital Signature means authentication of any electronic record by a subscriber by means of an ‘electronic method.’

• What is this electronic method by which a Digital Signature is affixed to an electronic record?

By using a combination of ‘Public Key’ and a ‘Private Key’, which convert the message into digital form. A private key will create a digital signature and one can use the public key to verify the digital signature.