Not all eSignatures are created equal. Here’s a breakdown of the three dominant types of eSign services in India—and which one stands up in court.

When it comes to digital contracts, most legal professionals agree: the real concern isn’t speed or user experience—it’s enforceability. And that starts with choosing the right kind of e-signature.

As India’s digital economy matures, three types of eSign services have emerged as legally recognized and widely adopted:

  1. Aadhaar-Based eSignatures
  2. Digital Signature Certificates (DSC)
  3. Consent-Based or Clickwrap eSignatures

Each comes with its own strengths, limitations, and use-case suitability. As a legal advisor, general counsel, or compliance officer, it’s essential to understand how they differ—because your choice could mean the difference between a contract that stands in court and one that doesn’t.

1. Aadhaar-Based eSignatures: Fast, Legally Backed, and Scalable

How it works:

The signer authenticates their identity using their Aadhaar number and a one-time password (OTP) sent to their Aadhaar-linked mobile number. This is facilitated via the UIDAI and licensed eSign providers.

Legal Standing:

Under the Information Technology Act, 2000, Aadhaar-based eSignatures are recognized as valid electronic signatures, provided the service is delivered through a government-authorized certifying authority.

Pros:

  1. Legally admissible and backed by government infrastructure
  2. Simple and quick—ideal for high-volume signings
  3. Integrated seamlessly with digital workflows

Cons:

  1. Requires Aadhaar linkage and mobile OTP deliver
  2. Not suitable for foreign signers or NRIs
  3. Limited granularity in authentication logs

Best for:

Banking, insurance, mutual fund onboarding, loan agreements, retail contracts.

2. Digital Signature Certificates (DSC): High Assurance, Court-Tested

How it works:

A signer is issued a cryptographic key pair stored on a USB token or cloud-HSM, validated by a Certifying Authority (CA). Signatures are applied using this certificate and embedded directly in the document.

Legal Standing:

DSCs are the most secure and robust form of eSignature under Indian law. They are considered as ‘secure electronic signatures’ under the IT Act, carrying a high degree of presumption in court.

Pros:

  1. Highest level of security and non-repudiation
  2. Signatures can be verified offline
  3. Recognized globally and accepted in tenders, ROC filings, etc.

Cons:

  1. Requires prior issuance and management of DSC tokens
  2. Not user-friendly for one-time or layman signers
  3. Higher cost and administrative overhead

Best for:
B2B contracts, government tenders, compliance filings, IP agreements, board resolutions.

3. Consent-Based eSignatures (Clickwrap): Lightweight, But Context Matters

How it works:

The signer agrees to terms by clicking a button, ticking a checkbox, or typing their name. Often combined with IP logging, timestamping, and audit trails.

Legal Standing:

Valid under Section 10A of the IT Act, which recognizes contracts formed via electronic means. However, proof of intent and consent is critical. Without proper metadata and logs, these signatures may be challenged.

Pros:

  1. Fastest and easiest method to deploy
  2. Great for low-risk, high-frequency agreements
  3. Easily embedded into websites, apps, and customer journeys

Cons:

  1. Legality depends on the presence of robust audit trails
  2. Often misunderstood as “non-binding”
  3. Weak if not paired with authentication or tamper-proofing

Best for:

E-commerce terms, employment offer letters, consent forms, service agreements.

So, Which One Should Legal Teams Choose?

Here’s a rule of thumb:

The smart approach is not choosing one, but building multi-layered signing workflows that balance security with ease of use. At SignDesk, our platform allows you to combine these types—so your contracts are legally compliant, court-admissible, and friction-free.

Final Word: It’s Not About Signatures—It’s About Evidence

Courts don’t just look for a signature—they look for intent, identity, and integrity. That’s why legal-first platforms like SignDesk focus on:

  • Advanced audit trails
  • AI-assisted fraud detection
  • Multi-factor identity verification
  • Time-stamped and tamper-proof documents