E-banking business is essentially regulated by the Information Technology Act 2000, under which personal signature is replaced by:

Encrypted signature
Image signature
Digital signature
Online signature

The correct answer is: C. Digital signature

A digital signature is an electronic signature that uses asymmetric cryptography to bind a user’s identity to a document. A digital signature is used to verify the authenticity and integrity of a document. It can also be used to prevent repudiation, which is when a party denies having signed a document.

The Information Technology Act 2000 (IT Act) is an Act of the Parliament of India enacted in 2000. The IT Act provides for the legal recognition of electronic documents and digital signatures. The IT Act also provides for the regulation of e-commerce and e-governance in India.

The IT Act defines a digital signature as “a mathematical algorithm or a combination of algorithms such that the signer affixes his/her approval or acceptance of the electronic record by means of a secure system of codes or passwords, which are unique to him/her, so that it is not possible to forge the digital signature.”

The IT Act also provides for the use of digital signatures in various transactions, such as electronic contracts, electronic wills, and electronic deeds. The IT Act also provides for the punishment for offenses related to digital signatures, such as forgery of digital signatures and unauthorized use of digital signatures.

The IT Act is a significant piece of legislation that has helped to promote the use of electronic transactions in India. The IT Act has also helped to improve the security of electronic transactions.

The other options are incorrect because:

  • Encrypted signature is a type of digital signature that uses encryption to protect the signature from unauthorized access.
  • Image signature is a type of digital signature that uses an image of the signer’s signature to verify the authenticity of a document.
  • Online signature is a type of digital signature that is created and verified online.