It can be executed on stamp paper or can be franked 

yes it can be franked and also it can be done on a stamp paer 

See it is not mandatory to pay stamp duty and franking of the master service agreement. 

You can get the agreement notarised. 

Yes you can do e franking of Rs.  100 for the same through any bank

Franking through online has started in many states. SO you can check whether in your state it has started or not.

The question of franking arises only if one of signatory is placed in abroad and can not come to India for signing.

If that is so then it can be executed by it in abroad and get it notarised therein only. 

franking is not compulsory

you can pay stamp duty online and attach e-receipt to the document

1.  All types of Agreement must be properly stamp duty paid and REGISTERED with the office of the local registrar of sub-assurances, to have legally enforceable value, during times of dispute.

2. Payment of online Stamp Duty is possible and allowed by MH govt., BUT physical presence is required for registrations.

Will execute on rs 500 stamp and notorised is OK. Registration fees max. 1500 Rs.

Franking the agreement is not a major criteria, whether you would like to register the agreement is the issue before you.

You can no doubt pay the stamp duty either estamping or physical, but it would be better you get that registered.

It is mandatory to pay stamp duty for a legal document and you can be fined if you don’t pay it. Franking, on the other hand, is a process that is used to stamp the legal document. This is the process used to affix any type of mark or stamp to a paper to indicate that the stamp duty has been paid.

Franking is not mandatory. You can stamp your paper using franking, e-stamping or you can buy stamped papers or stamp papers.