Agartala: The Tripura cabinet on Thursday passed a policy for collecting stamp duty through e-stamping.

Tripura is the 21st state in the country to introduce e-stamp and e-registration in the revenue department.

Law minister Ratan Lal Nath told reporters here on Thursday that previously the government had to purchase stamps in exchange for security money.

The new system will eliminate any such problems related to stamp duty and money would be directly credited in the state exchequer, eliminating third party intermediaries.

E-stamp is an electronically generated impression on paper instead of paper-based non-judicial stamps issued from authorised collection centres, which are appointed by the central record keeping agency in agreement with the state government.

"The new system will save money, prevent fraud, assure authentication by electronic means and extend the service to citizens at their door steps," Nath said.

He said the erstwhile Left Front government took initiatives to introduce e-stamps but failed due to "lack of decision-making ability".