What is Aadhaar eSign? How Does Aadhaar eSign Works

What is Aadhaar esign?

Aadhaar eSign is a digital method for signing documents through an Aadhaar card, providing legal and evidentiary advantages comparable to handwritten signatures. This electronic signing capability allows any Aadhaar holder to sign documents seamlessly, eliminating the requirement for physical paperwork.

The process of signing a document traditionally involves an extensive journey, encompassing intricate KYC verifications, security concerns, data risks, and substantial logistical challenges. Signatories are required to be physically present, submit voluminous paperwork, and endure approval waits before being able to sign any document.

Aadhaar eSign tools stand out as a transformative solution, significantly reducing the carbon footprint. It offers unparalleled convenience through swift and secure remote access, eliminating the need for paperwork and protracted queues.

In the contemporary digital sphere, eSignature tools developed by software providers have led the way in seamlessly incorporating Aadhaar based digital signatures into intelligent workflows. This innovative approach empowers both organizations and individuals to efficiently and securely execute legally binding documents, marking a paradigm shift towards a more sustainable and streamlined digital future.

The Emergence of Aadhaar Based Digital Signature

The outset of Aadhaar eSign can be traced back to the establishment of the Unique Identification Authority of India (UIDAI) in 2009. The primary objective was to provide a unique identity to each Indian resident through the issuance of Aadhaar cards. As Aadhaar gained widespread acceptance and recognition, a need arose for a secure and legally valid method of electronic signature.

In 2015, UIDAI introduced Aadhaar based eSign as a revolutionary solution to enable individuals to digitally sign documents using their Aadhaar credentials. This move aimed to streamline and simplify documentation processes, promoting a paperless and efficient approach to transactions.

The surge in the adoption of Aadhaar based digital signature services witnessed a significant upswing, particularly after the November 2016 demonetization, propelling it to become the world’s most extensive biometric identification system. As per UIDAI records, an impressive 1.385 billion Aadhaar cards have been generated to date.

Is Aadhaar eSign Legally Valid in India?

Yes, Aadhaar eSign online holds legal validity in India, established through a notification issued by the Central Government on January 28, 2015 ( Gazette Notification No. 2015 Jan – GSR 61(E) titled “Electronic Signature or Electronic Authentication Technique and Procedure Rules, 2015″).

This notification incorporated the Aadhaar eSign, designating it as a legally accepted electronic signature.  The Central Government exercised its authority under Schedule II, Section 3A of the Information Technology Act, 2000 (Electronic Signatures) to introduce Aadhaar eSign as a valid electronic signature.

The integration of Aadhaar eSign operates as an interaction between three essential processes:

• e-Authentication – This step involves verifying an individual’s identity using their Aadhaar number through biometric or OTP authentication. The e-KYC service provider, UIDAI, conducts e-authentication, providing digitally signed demographic data like name, address, date of birth, and more.
• Hashing Function – A mathematical process converting digital data into a fixed-length output string or hash is employed to ensure the integrity of the information. For Aadhaar eSign online, SHA-256, a 256-bit hash value generator, is used for Hashing Function.
• Asymmetric Cryptographic function – This encryption method utilizes a pair of keys – public and private – to secure and decrypt data. The public key is shareable, while the private key remains confidential. RSA, generating a 2048-bit key pair, is the chosen asymmetric cryptographic function for Aadhaar eSign. The eSign service provider generates this key pair, signing the hash value of the data using the private key. The certifying authority issues the DSC, allowing verification of the signature and individual’s identity.

As per Schedule II, the technical and regulatory aspects of these processes are delegated to the Controller of Certifying Authorities (CCA), the apex regulator of electronic signatures in India. The CCA has defined the regulatory framework governing Aadhaar eSigns in the e-Authentication Guidelines dated May 3rd, 2019.

How Does Aadhaar eSign Works?

The process of creating an Aadhaar based digital signature is swift, user-friendly, and straightforward. Follow these steps to seamlessly execute eSign Aadhaar from the convenience of your location.

• Log In to the eSign Portal : Initiate the Aadhaar eSign online process by logging into the dedicated eSign portal.

• Bulk or Template-Based Document Upload : Once logged in, seamlessly upload documents either in bulk or create them using pre-existing templates available in the clause library. The user-friendly digital dashboard facilitates the simultaneous upload of multiple documents.

• Signer Invitation via Email : After the documents are uploaded, initiate the Aadhaar eSignature workflow by sending invitations to signers via email. Choose the Aadhaar based digital signature workflow for this step. Utilize the eSign portal to invite signers either in parallel or in a specified sequence.

Signer Journey –

• Signer Notification : Signers receive an email and SMS containing a link to sign the document.

• Signer Access and Preview : Signers, upon receiving an email and SMS, access a provided link. They can then preview the document and input their name as per Aadhaar.

• OTP Authentication :Signers receive OTPs on their registered email and mobile numbers. These OTPs serve as secure authentication mechanisms for Aadhaar eSigning, ensuring a remote and instant process.

• Redirect to the NSDL Interface : Upon proceeding, the signers are redirected to the National Securities Depository Limited (NSDL) interface. There, signers can enter their Aadhaar number, generate an OTP, and validate it.

• Digital Signature Placement : Once the OTP is validated, signer details are extracted from the UIDAI database and cross-verified. After successful verification, eSignatures from all parties are affixed to the electronic documents. 

• Completion and Document Distribution : When all signers have successfully signed, the final digitally signed document is automatically emailed to all stakeholders. A signature certificate is generated, capturing details such as date, IP address, timestamps, and signer information.

• Download eSigned Documents : Parties can conveniently download the digitally signed documents via email. An audit trail document containing transaction details is also dispatched for future reference and audit purposes.

Any Aadhaar holder can digitally sign a document using eSign without the need for a cryptographic device or a physical digital signature dongle. Moreover, eSign can seamlessly integrate into various service delivery options through an open Application Program Interface (API).

Application Service Providers (ASPs) can incorporate eSign into their existing applications and platforms, facilitating Aadhaar holders in digitally signing documents and electronic forms.

Which Documents Can be e-Signed with Aadhaar?

Aadhaar e Signatures can be used to sign a variety of documents, making the process convenient and efficient. Some common documents that can be eSigned using Aadhaar include:

• Agreements and Contracts : Business agreements, service contracts, and other legal documents can be eSigned using Aadhaar.
• Financial Documents :Official records of financial actions and conditions of loan agreements, mortgage documents, and other financial contracts can be electronically signed, providing a secure and efficient method for document authentication.
• Insurance Policies : Insurance agreements, policy documents, and claim forms can be eSigned for quick and secure processing.
• HR and Employment Documents : Streamline the hiring process by digitally signing HR-related documents and Offer letters outlining key terms of employment.
• Sales Contracts : Facilitate business transactions with electronic signatures on sales contracts, business documents, and legally binding agreements between buyers and sellers.
• Educational Documents : Streamline educational documentation, including consent forms and enrollment agreements, through Aadhaar eSignatures, enabling minors to participate in school-related activities and events.
• Real Estate Agreements : Simplify the process of renting or leasing property and sale deeds by digitally signing agreements between landlords and tenants or buyers.
• Healthcare Forms :Patient consent forms, medical records, and healthcare agreements can undergo eSigning through Aadhaar.

The Ministry of Electronics and Information Technology (MeiTY) officially extended the list of documents eligible for eSignatures through an IT Act (2000) amendment, announced on September 26th, 2022.

Now, in addition to the aforementioned documents, the following can also be signed electronically:

• Cheques, Promissory Notes, and Bills of Exchange : Issued or endorsed by entities regulated by RBI (Reserve Bank of India), NHB (National Housing Bank), SEBI (Securities and Exchange Board of India), IRDAI (Insurance Regulatory and Development Authority of India), and PFRDA (Pension Fund Regulatory and Development Authority).
• Powers-of-Attorney (PoA) Empowering regulated entities to act on behalf of individuals subject to RBI, NHB, SEBI, IRDAI, and PFRDA regulations.
• Contracts for Sale of Immovable Property :Streamline property transactions by digitally signing contracts for the sale or conveyance of immovable properties.

Before eSigning any document, it’s advisable to ensure that the recipient or the organization recognizes and accepts Aadhaar eSignatures as valid.

Accelerate Business Growth through Aadhaar eSign

Businesses across sectors, especially in BFSI, can expedite signature cycles and foster growth by integrating Aadhaar based digital signatures. Aadhaar eSign offers several advantages, contributing to rapid business expansion, such as:

• Optimized Workflow : Aadhaar eSign digitizes documentation workflows efficiently and securely,  reducing the time and resources required for document processing. Businesses can manage multiple contracts and client profiles transparently, fostering innovation and efficiency.
• Cost Savings : Businesses can save on costs related to paper, printing, and manual handling of documents, contributing to overall operational cost efficiency.
• Paperless Compliant Documentation : Organizations can uphold their reputation and compliance with regulatory frameworks through paperless documentation. Aadhaar eSign ensures legal support in cases of breaches or non-compliance.
• Bulk eSigning :Business organizations can swiftly eSign multiple contracts across diverse workflows. This streamlined process enhances productivity and efficiency in paperwork and contract execution.
• Active Tracking : Aadhaar based digital signature come with an Audit Trail, offering enhanced traceability and a comprehensive record of all document activities. This ensures transparency and provides evidence in case of any fraudulent activities related to eDocuments.
• Improved TAT & Revenue : Adopting Aadhaar eSign has enabled businesses to significantly reduce turnaround time, enhancing overall workflow efficiency. The resource-efficient process minimizes operational and maintenance costs associated with paper-based workflows, contributing to increased revenue generation.
• Enhanced Customer Experience : The convenience of electronic signatures enhances the customer experience by eliminating the need for physical presence and paperwork, making transactions smoother.

Aadhaar eSign empowers businesses by digitizing processes, cutting costs, improving speed, ensuring security, and aligning with modern expectations for efficient, streamlined operations.

Key Features of Aadhaar eSign

Aadhaar eSign seamlessly blends cutting-edge features with the future of signatures, providing an advanced platform where innovation meets the evolution of digital signing experiences.

• Unlimited Signing Capability : Aadhaar eSign boasts an unrestricted signing capacity, allowing businesses to manage signatures without limitations. Whether it’s a small team or a large enterprise, Aadhaar eSign adapts to the signing needs.

• Tailored Document Templates : Businesses can create and deploy personalized templates for different types of documents. This feature streamlines the signing process, ensuring uniformity and efficiency in documentation workflows.

• Smart eSign Dashboard : The Smart eSign Dashboard provides users with a centralized and intuitive interface to manage and monitor the eSigning process. Users can track the status of documents, view signatories, and access other essential details remotely from a single, user-friendly dashboard.

• Multiple Document Support : Aadhaar eSign supports the signing of multiple documents, including PDF and docx, within a single workflow. This capability enhances efficiency and scalability, particularly when multiple agreements or forms need to be signed in a single transaction.

• Multiparty & Multi-Location Signing : Aadhaar eSign facilitates multiparty signing, allowing multiple signatories from different locations to sign a single document. This is especially valuable in scenarios where approvals or authorizations are required from multiple stakeholders.

• Adaptable Signing Sequence : Aadhaar eSign caters to diverse workflows, allowing signatories to sign documents in parallel or sequential orders, aligning seamlessly with specific business process requirements.

• Advanced Encryption Protocols : Aadhaar eSign guarantees top-tier security, employing industry-grade cryptosystems and Aadhaar based eSign encryption protocols to protect the integrity and confidentiality of signed documents, aligning with the rigorous security standards of various industries.

Why Use Aadhaar eSign Over Other eSign Methods?

According to the IT Act (2000), only two types of E-Signatures are permissible in India:

• USB Token E-Signatures : This hardware-based signature utilizes a USB Token containing a Digital Signature Certificate (DSC). Employing the Public Key Infrastructure (PKI) establishes signatures and enables the electronic signing of documents in bulk through a computer.
• OTP-Based E-Signatures : This workflow involves signing documents by sending an OTP verification to the concerned party’s registered mobile number and email address. Both Aadhaar and electronic signatures utilize this OTP-based approach.

Why Does Aadhaar eSign Stand Out?

Aadhaar eSign emerges as a versatile, efficient, and legally compliant solution, outperforming other eSign methods.

• Execution Simplicity Aadhaar eSign’s OTP-based process offers unparalleled simplicity, making it ideal for businesses prioritizing a straightforward signing experience.

• Versatility Across Industries : While electronic signatures optimize time and DSC signatures prioritize security, Aadhaar eSign effortlessly caters to various industries, including banking, insurance, and securities.

• Inherent Security and Compliance : Aadhaar eSign ensures higher levels of security. It combines ease of use with the inherent trust associated with Aadhaar, meeting stringent regulatory requirements for banks, insurers, and securities intermediaries.

• Customer-Centric Approach : In sectors like banking and insurance, where customer trust is paramount, Aadhaar eSign excels. The seamless Aadhaar-linked process ensures a smooth and secure customer experience.

• Cost-Effective Solution Compared to complex DSC workflows, Aadhaar eSign stands out as a cost-effective solution, particularly beneficial for businesses looking for efficiency without excessive overheads.

• Government-Backed Credibility : Aadhaar eSign draws strength from being backed by the UIDAI database, adding a layer of credibility and trust to the signatures, especially in regulated sectors.

Its adaptability across industries, streamlined workflows, and user-friendly interface make it ideal for businesses seeking a comprehensive eSigning solution.

Facilitate Instant Aadhaar E-Sign using SignDesk’s E-Signature Tool

SignDesk’s Aadhaar eSign service is powered by the AI-driven eSigning software “ink.it.” This Aadhaar eSign tool, equipped with enterprise-grade features, streamlines signature cycles and simplifies the document authentication experience. Its user-friendly interface enables anyone with basic web knowledge to complete the signature process in minutes, accessible from any location via a mobile device with internet connectivity.

In addition to PAN-based and DSC signatures, we offer options for PDF electronic signing, with Aadhaar eSignature being the widely used and most secure digital signature. Businesses can efficiently generate, eSign, and manage all their documents through our Aadhaar eSign tool, enhancing the overall corporate paperwork process.

Ready to Transform Your Document Management? Start eSigning with SignDesk’s Aadhaar eSign tool for secure and swift Aadhaar eSignatures.