Explanation:

The Hanko is a personal stamp of Japan. It is equivalent to signature in other countries. The tradition is gaining criticism in Japan post COVID-19 period. The use of Hanko is a two millennium old tradition that was used to identify individuals that are involved in government agencies. Small-sized and circular or square-shaped, the stamp is wet by an ink pad called ‘shuniku’, and the mark that it leaves on a document is called ‘inkan’. There are specific types of the hanko that are used for authorising different kinds of transactions, such as those requiring registered seals, bank documents, and for day-to-day use. Hence statement 2nd is correct.