What is an eSignature?
An electronic signature, often known as an eSignature, is the digital version of a wet ink signature. These signatures are specific to the document, which all parties must sign and validate. eSignatures are simple substitutes for written signatures that make signatures quicker and more secure.
The eSignature service of authenticating users is made possible through the Aadhaar Electronic Know Your Customer (eKYC) service.
Any Aadhaar card holder can electronically sign a document using a mobile, tablet, computer, etc.) by providing their Aadhaar number and OTP or Biometric scan. These eSignatures, which rely on the Aadhaar number and UIDAI database for signatures, are known as Aadhaar signatures.
The electronic signature was designed to replace the physical- digital signature dongle by mass adoption of the digital signature.
Why are eSignatures Important?
The Government of India considers eSignature legally valid and can be used to sign documents under the Information Technology Act 2000 electronically.
Electronic signature provides an alternative to the old physical process of applying signatures on documents.
In India, the legitimacy of electronic signatures is determined by the Indian Contract Act and the IT Act 2000.
According to the IT Act, the signer must get a Digital Signature Certificate (DSC) from a Certifying Authority (CA) that has been authorized by the Controller of Certifying Authorities to establish electronic signatures (CCA). Users may now electronically sign PDFs and other documents.
What are the Different Types of eSignature?
SignDesk provides a variety of eSignatures. Firms may select an appropriate type of eSign and manage their signing procedures online. The platform also offers free eSignatures for particular eSignature alternatives. Businesses can experiment with eSignatures on digital documents:
- OTP based eSignature
This eSignature tool allows users to sign papers on the fly and is a quick and easy method to sign documents electronically. A one-time password (OTP) is sent to the signer through phone or email. To finish e-signing the document, the OTP is input.
OTP eSignature benefits any business that wishes to complete document signing procedures more quickly, such as retail enterprises, FMCG organizations, consultants, etc
- Aadhaar-based eSignature
A one-time password is also used to authenticate this eSignature (OTP). When the signer commences eSigning, his information is collected from the UIDAI database, and he receives an OTP on his Aadhaar-linked cellphone number. To e-sign the document, the signer inputs the OTP.
Aadhaar eSignature is primarily used in the BFSI industry to handle document signature operations securely.
- Digital Signatures or DSC-based Signatures
Only entities registered with the Comptroller of Certifying Authorities (CCA) may offer digital signature services. Once registered with the CCA, these entities are called Certifying Authorities or CAs.
Businesses can leverage digital signatures using USB tokens. Each signing business is given a unique Digital Signature Certificate (DSC) used to generate public and private keys. These keys encrypt and subsequently decrypt documents to ensure security, authenticity, and ease of usage.
- Video-based Signatures
Businesses may use this eSignature to produce video-based evidence of permission. The signer appears in a videotape where he consents and confirms the document’s provisions.
Video eSignatures enable organizations to provide a simple, remote authentication solution by providing a live, virtual manner of signing papers.
How to Create an Electronic Signature (eSignature)?
To create eSignatures, various methods can be used, including an OTP-based workflow. With this method, individuals can sign documents by receiving an OTP verification to their registered email address and mobile number. Both Aadhaar and electronic signatures use this method. Here are the steps involved in this process:
- Log in to the eSign website provided by SignDesk.
- Upload the document that needs to be signed onto the eSigning portal, or use templates to draft a new document.
- Invite the required signers by sending them an email or SMS invitation.
- The parties accepting the invitation can sign the document electronically within minutes using the OTP supplied to their Aadhaar-registered mobile number or digital signatures.
- Once the document has been authenticated using eSignatures, SignDesk will transmit the signed copy to all parties involved.
- After an electronic document has been signed, it is stored securely and can be downloaded by all parties involved, including signers and stakeholders.
Advantages of E-Signatures
eSignatures have a distinct edge over their physical counterparts. eSignatures are commonly used by businesses for the following reasons:
- An individual can sign a document online from anywhere and, at the same time, get multiple parties to sign a document from different locations.
- eSignatures are convenient and easy to use.
- Physical or paper-based records will no longer be required, along with the space for storing such documents. E-Signature is consistent with being eco-friendly and the go-green initiative.
- Permanent storage of electronic records of documents serves as evidence.
- The electronic signature is consent-based and can only happen if a user requires service and initiates the same.
- Electronic documents stored online are tamper-proof. Additionally, eSignatures help secure documents to avoid data breaches.
Who can provide an eSignature?
Any Application Service Provider (ASP) can facilitate eSignature services to customers by integrating the service into their application. The entity should be:
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- A Legal Entity registered in India
- A financial institution, bank or telecom company
- A non-profit company or Special Purpose Organization
- An authority incorporated under the State or Central Act
- A Central or State Government Ministry or department or any undertaking formed by the same authorities
Who can use eSignatures?
The delivery of services for the following applications can be enhanced with the use of electronic signature:
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- Digilocker for self-attestation of documents
- E-filing and application ID for Tax and Tax Returns
- New account applicants at post offices and banks
- Application for vehicle registration and license renewal
- Application for Income certificate, death certificate, birth certificate, marriage certificate, etc.
- Applicants for issue and reissue of Passport
- Application for a new telecom connection
- College Students for exam and/or course enrollment
- Members of Parliament can use an eSignature to submit parliament questions
Which Documents Can Be eSigned?
eSignatures are legally accepted in the majority of business and private transactions. The more significant concern now is which papers are qualified for eSignatures. Let’s have a look at the documents which can be eSigned:
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- Offer letters: A corporation sends a letter explaining the significant terms of employment to a prospective employee.
- Rental/lease agreements: A rental agreement is a documented contract between the property’s owner and a renter who wants to inhabit it temporarily.
- Contracts for the Sale of Goods: A contract for the sale of products is a written agreement between a buyer and a seller to purchase goods for a particular quantity of money.
- Permission slips: These are the documents that a school or other organization sends home with a kid and asks the parent to sign permitting minors to go on their behalf for an event such as a field trip.
- Financial statements: They act as official records of a corporation’s, an individual’s, or another institution’s financial activities and conditions.
- Liability waivers: A participant must sign a liability waiver to acknowledge the risks associated with an activity. By doing so, the corporation hopes to absolve the organization or person in charge of the action of legal culpability.
Onboard Customers And Vendors With Instant E-Signatures
A company or an entity can use eSignature services to onboard customers or vendors.
Customers or vendors can sign a document remotely, enabling a company to onboard more customers conveniently and at a lesser cost.
These companies can use SignDesk to avail digital and eSignature offerings to onboard vendors or customers, sign agreements and contracts, self-attestation, etc.
Negotiable instruments, power of attorney, trust, will, the sale of immovable property, etc., are the documents that cannot be electronically signed.
Any customer or vendor will be required to provide their 12-digit Aadhaar number and One-Time Password (OTP) to a company, and the customer can sign a document or agreement with the partnered company.
The company can then enter into a legal contract with a customer or vendor after a customer or vendor has affixed their electronic signature on a document.
SignDesk: Premium Documentation Solution with eSignatures
SignDesk is an authorized Application Service Provider (ASP) that helps you sign your legal document in a few minutes.
SignDesk packages are available for small and medium businesses as well as enterprises.
All you have to do is upload the document that needs signing and verify your identity by providing your Aadhaar number and OTP, followed by electronically signing the document or sharing the document with multiple parties. Try our service.