eSign: An Eco-Friendly Way Of Signing Documents

What is eSign?

eSign refers to an electronic signature, which is a digital alternative to manually signing paper documents. eSign paperless procedures offer a secure and eco-friendly way to sign documents in both personal and business contexts.

Utilizing an eSign tool enables businesses to create digital documentation and facilitate online signing via a smart platform, eliminating the need for paper-based signing operations. By transitioning to a paperless signing process, you streamline workflow efficiency and reduce environmental impact while also ensuring secure and legally binding transactions.

The Worldwide Landscape of eSign Paperless Initiatives

The global digital signature market size is projected to grow from USD 7.4 billion in 2023 to USD 34.8 billion by 2028 at a CAGR of 36.4% during the forecast period, as reported by MarketsandMarkets in 2020.

The electronic signature market is driven by various factors, such as

• Increasing digital fraud underscores the necessity for secure authentication methods.
• Global regulations and data privacy laws are driving the demand for compliant digital signature solutions.
• The growth of eCommerce and remote work is fast-tracking the adoption of digital signatures for secure online transactions.
• The demand for streamlined workflows and faster business processes is driving the demand for digital signature solutions.

The digital signature market offers significant opportunities for growth and innovation through the integration of advanced technologies like AI and blockchain, improving security and efficiency in signing processes. On eSign paperless platforms, cloud-based solutions are gaining traction, providing scalability and accessibility to businesses of all sizes. The push towards paperless operations across industries further broadens the scope for eSign paperless solutions, making eSign a vital tool for modern businesses.

Legal Scope of eSign Paperless in India

Electronic signatures facilitated through eSign are legally valid in India under the Information Technology Act, 2000 (Second Schedule), which helps promote the growth of e-commerce and e-governance in India. According to the IT Act, individuals are required to obtain a Digital Signature Certificate (DSC) from a Certifying Authority (CA) authorized by the Controller of Certifying Authorities (CCA) in order to establish eSignatures.

To avail of any eSign service, an individual must have a valid Aadhaar ID. The Government of India introduced the Electronic Signature or Electronic Authentication Technique and Procedure Rules, 2015 , to facilitate eSign through Aadhaar eKYC services. eSign enables an Aadhaar holder to digitally sign a document upon request from anywhere and at any time in an easy and secure manner. eSign authenticates the identity of an individual through Aadhaar eKYC information.

Traditional eSign and Legacy Solutions

Legacy solutions used for eSign include older software applications, outdated hardware devices, or manual processes that are still used for electronic signature purposes in many areas, including:

1. Handwritten Signatures – A traditional method where individuals physically sign their names on paper documents, distinguishing them from digital signatures or electronic signatures.
2. Notarization – Some documents require notarization, where a notary public verifies the signer’s identity and witnesses the signing of the document, often affixing a seal or stamp.
3. Seal Stamps – In some cultures or legal systems, individuals may use a seal stamp or chop to authenticate documents instead of a handwritten signature.
4. Scanning and Emailing – This involves printing out a document, physically signing it, scanning it back into a digital format, and then emailing it to the intended recipient.
5. Faxing – Similar to scanning and emailing, faxing involves printing out a document, physically signing it, and then faxing it to the recipient’s fax machine.
6. In-house developed software – Some organizations may have developed their own electronic signature software in-house. However, these solutions may lack the advanced features and security measures of modern eSign platforms.

Types of Electronic Signatures Available

There are several types of eSign solutions available, each offering different features, levels of security, and integration capabilities. The choice of eSign solution depends on factors such as security requirements, regulatory compliance, user experience, and integration with existing systems.

1. Electronic Signature – Users can electronically sign their documents using OTP-based, OTP-less, or automatic procedures.
   • OTP-based eSign – With OTP-based eSign, users can digitally sign documents using a one-time password (OTP) sent to their registered mobile number or email address. 
   • OTP-less eSign – OTP-less eSign eliminates the need for a one-time password by using pre-authenticated user credentials or other secure authentication methods. 
   • Auto Sign – Auto Sign enables the automatic signing of documents based on predefined rules. This feature is useful for repetitive or routine signing tasks, saving users time and effort.

2. Aadhaar eSign – Aadhaar eSign enables users to securely sign documents by authenticating their identity through Aadhaar-based verification methods such as OTP or biometric authentication.
   • OTP Authentication – Aadhaar eSign with OTP authentication verifies the signer’s identity by sending an OTP to their Aadhaar-registered mobile number. Once authenticated, the signer can securely and digitally sign the document.
   • Fingerprint Authentication – Fingerprint authentication leverages biometric data stored in the Aadhaar database to verify the signer’s identity. 
   • IRIS Authentication – IRIS authentication uses iris scanning technology to authenticate the signer’s identity based on unique iris patterns.
   • Face Authentication – Face authentication verifies the signer’s identity by comparing their facial features with the biometric data stored in the Aadhaar database. 

3. DSC Signature – DSC Signature allows users to sign documents online using cryptographic keys and secure algorithms, ensuring enhanced document security and signer authentication.
   • Dongle-based eSign – Dongle-based eSign utilizes hardware dongles containing private keys for cryptographic signing. It ensures secure storage of signing credentials and protects against unauthorized access.
   • Cloud HSM – Cloud Hardware Security Modules (HSMs) provide secure storage and management of cryptographic keys in a cloud environment, elevating scalability, flexibility, and high-level security for online document signing.
   • Cloud Sign – Cloud Sign allows users to sign documents securely from any device connected to the internet, offering convenience, accessibility, and robust security measures.
   • PAN-based eSign – This type of eSign utilizes the signer’s PAN for authentication and signing purposes, providing a unique identifier for each signer and ensuring compliance with regulatory requirements.

4. Video-based Evidence Creation – Video-based evidence creation captures the signing process on video, creating a visual record of the document signing event. This evidence can be used to authenticate legal documents and provide a secure digital trail for documentation purposes.

How Does eSign Paperless Solution Work?

eSign integration is facilitated through an open Application Programming Interface (API), allowing Application Service Providers (ASPs) to seamlessly incorporate digital document signing capabilities into their existing platforms. This integration enables users to sign documents and forms electronically within the ASP’s applications.

• Initiate the eSigning Process – Log into the eSigning platform to begin signing by accessing the necessary tools and features to manage documents and signatures.
• Upload Document or Draft Using Templates – Choose the document or draft that needs to be signed by utilizing pre-designed templates for quick and easy document creation. Users can upload the selected document or merge documents together to make it a single document.
• Invite Signers via Multiple Channels – Send invitation emails to signers containing the eSigning link. Alternatively, invitations can be sent via SMS or WhatsApp for signers’ convenience, with clear instructions on how to access and sign the document.
• eSign Document Online – Signers can access the document using the provided link. Review the document content and terms before proceeding with the eSigning process. Signers can electronically sign the document using the eSigning tool.
• Distribute eSigned Document – Once all signers have completed the eSigning process, the eSigned document is generated. The eSigned document is distributed to all parties involved in the signing process. Each party receives a copy of the eSigned document for their records and reference.

The Role of Paperless eSign in Public and Private Services

Paperless eSign plays a crucial role in transitioning various public and private services to online platforms, facilitating eSign paperless transactions. Several departments and sectors utilize eSign for the digital delivery of services, including:

Why is eSign Paperless an Alternative to Paper-Based Signing?

Conventional eSign methods lack the advanced features, security measures, or efficiency improvements found in more modern eSign solutions. By contrast, contemporary eSign platforms offer enhanced functionality, stronger security protocols, and better integration capabilities, resulting in improved user experiences and streamlined workflows. Upgrading from legacy solutions to modern eSign platforms can lead to increased productivity, reduced risks, and better compliance with regulatory requirements.

Apart from saving paper, handling costs, storage of documents, and efficient retrieval of documents, the basic advantages of going paperless using eSign are

• eSign is flexible and can be quickly integrated into an existing application, which helps improve user convenience.
• A complete audit trail can be traced because all information is stored securely online.
• eSign is compliant with all privacy laws and policies stipulated by the Indian Government. An individual’s consent is required, and a digital signature is only accessible upon initiation by the user.

Why Should Your Business Opt for eSign Paperless Solutions?

Private companies, insurance providers, banks, startups, telecom firms, and government departments alike can seamlessly integrate eSign into their applications to digitally sign documents and forms. By incorporating eSign into their existing services, organizations can efficiently onboard customers, clients, and vendors. This remote signing capability enables companies to expand their customer base while reducing onboarding costs.

Businesses choose eSign for several reasons –

• Efficiency – eSign streamlines document signing processes, reducing the time and effort required to obtain signatures. This leads to faster TAT for contracts, agreements, and other important documents.
• Cost Savings – Adopting eSign eliminates the need for printing, scanning, and mailing paper documents, resulting in significant cost savings on paper, ink, postage, and storage.
• Convenience – eSign allows for remote signing from anywhere with an internet connection, enabling businesses to reach clients and partners globally without the need for in-person meetings.
• Security – eSign platforms offer robust security features such as encryption, authentication, and audit trails, ensuring the integrity and confidentiality of signed documents.
• Compliance – eSign solutions often comply with industry regulations and legal standards for electronic signatures, reducing the risk of non-compliance and associated penalties.
• Scalability – eSign solutions can scale to meet the needs of businesses of all sizes, from small startups to large enterprises, facilitating growth and expansion.
• Environmental Benefits – By reducing the need for paper-based processes, eSignature contributes to environmental sustainability by minimizing paper consumption and waste.

Leverage SignDesk’s eSign Paperless Tool to Optimize Business Documentation

SignDesk offers SaaS-based digital solutions that empower businesses and consumers with eSign paperless services. With tailored packages catering to individuals, small and medium-sized businesses, and enterprises, SignDesk provides versatile solutions for all signing needs.

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