Franking
Paying stamp duty by having an authorized bank imprint the stamp on your document with a franking machine — an alternative to stamp paper and e-stamping.
Definition
Franking is the process of getting a document stamped by an authorized bank or franking agency using a franking machine, which imprints a mark or denomination on the document as proof that stamp duty has been paid. It is one of three common ways to pay stamp duty in India, alongside traditional non-judicial stamp paper and the newer e-stamping system. Franking is done in person: you take the printed but unsigned document (commonly a sale agreement or home loan agreement) to an authorized bank or sub-registrar-approved agency, pay the duty, and the machine affixes the stamp.
Franking charges are a service fee levied on top of the stamp duty itself, and they are not standardized across India. In states such as Maharashtra and Karnataka the charge is commonly around 0.1% of the transaction or loan value, and in many cases the franking charge paid is adjusted against the total stamp duty payable. Home-loan borrowers often encounter franking twice — once on the sale agreement and once on the loan agreement.
Its practical limitations are worth knowing: franking requires physical presence during bank hours, machines have quota limits on how much duty they can frank, and availability varies by branch. This is why many states have pushed transactions toward e-stamping, which is digital and tamper-proof. Whether franking, stamp paper, or e-stamping is used, the legal effect is the same — the document is duly stamped — but the state you are in determines which methods are accepted.
Example
The bank franked Priya's home loan agreement for a 0.1% charge, imprinting the stamp directly on the document before she signed it.
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Sources
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