Types of eSigns in India: Understanding Aadhaar eSign, DSC, PAN e-Sign & More

e-Sign (electronic signature) refers to a digital signature. It is an alternative to a physical signature. eSignature simplifies the process of signing agreements, banking transactions, and government documentation. It eliminates the need for physical paperwork and makes the documentation process efficient and cost-effective.

The Information Technology (IT) Act 2000 provides the legal framework for e-signature in India. e-signatures are legally valid for most transactions. Aadhaar e-sign and Digital Signature Certificates are most commonly used. In this blog, you will learn about eSign and the types of eSign in India.

What is eSign?

eSign or electronic signature is an online way of document signing. It is equally valid as the traditional handwritten signature. This promotes online documentation and reduces the dependency on printing and signing on physical documents. It is legally valid in India. 

Types of eSign in India

These are eSign types used in India:

Simple Electronic Signatures (SES): Simple Electronic Signatures (SES) are considered the basic form of signature which includes scanned signatures, typed names or click to sign actions. These are usually used for internal communication and low-risk agreements such as employee onboarding and simple contracts.

Advanced Electronic Signatures (AES): Advanced Electronic Signatures provides higher security for transactions by verifying the signer’s identity through IDs, biometrics, and unique codes. It requires a digital certificate to ensure a strong link between the signer and the signature. It is commonly used for an employment offer letter, in which candidates verify their identity and sign the document digitally.

Qualified Electronic Signatures (QES): QES are the most secure and legally recognized type of e-signatures. They are issued through a trusted authority. It is created using a certified device to verify the signer’s identity.  It is used for important documents such as government filings and legal contracts.

Aadhaar eSign

Aadhaar eSign is an online method that allows Aadhaar holders to digitally sign documents. It replaces the cumbersome paper-based document signing through Aadhaar credentials.

How does it work?

In Aadhaar-based eSign, the user provides the Aadhaar Number and authenticates identity using OTP sent to the registered mobile number or through biometric authentication.

Types of Aadhaar eSign:

• OTP-Based eSign: Users can receive OTP on their Aadhaar-linked mobile number for verification and sign documents.
• Biometric Based eSign: In biometric based eSign, fingerprint and iris scan are used for authentication.

Digital Signature Certificate (DSC)

A Digital Signature Certificate (DSC) is an encrypted online key issued by a Certifying Authority (CA) that verifies the signer’s identity.

Types of DSCs:

• Class 2 DSC: It is used for GST filings, income tax returns, and other financial transactions.
• Class 3 DSC: It is used in high security transactions like e-tendering, e-bidding, and corporate transactions.
• DGFT Certificate: It is used by imposters and exporters for secure transactions with the Directorate General of Foreign Trade.

Clickwrap Signature

Clikwrap signature refers to the signatures used in agreements where the user accepts the terms by clicking on a checkbox or button.

What are clickwrap agreements?

A form of electronic agreement, where users give consent by clicking “I Agree” instead of a physical signature.

Common Examples

• Website Terms and Conditions.
• Software Licenses and app permissions.
• Online service agreement, such as banking and e-commerce.

Virtual Signature

Virtual Signature refers to the digital version of a person’s handwritten signature. Many online services allow users to add a signature to electronic documents. In virtual signatures, users can use the mouse or touchscreen to draw a signature. They can also select a generated version of their name.

Benefits of e-Sign

e-Sign offers several benefits such as:

• Paperless Process: eSign replaces the time-consuming manual documentation and administrative work.
• Cost Effective: Digital signature eliminates the cost spent on printing, scanning, courier service, and storage. e-Sign cuts operational expenses, making it more affordable than traditional signatures.
• Improve Efficiency: Digital signature is an instant process. It reduces delays caused due to physical documentation. This facility speeds up the process, such as loan approvals, legal agreements, etc.
• Eco-Friendliness: As eSign reduces the paper consumption, it helps in reducing deforestation and carbon footprint.
• Enhanced Security: eSign uses methods like OTP, Biometric, and cryptographic keys. These methods reduce the chances of fraud that can occur in physical documentation. Digital signatures are tamper-proof verification and are more secure than handwritten signatures.
• Legally Valid: e-Sign is legally valid under the IT Act, 2000. This ensures that it is acceptable in financial, legal, and government transactions.

Surepass eSign Solutions

Surepass is a reputed name in identity verification, offers various APIs for eSigning. These APIs are

Aadhaar eSign: Aadhaar eSign simplifies the documentation work with quick Aadhaar eSignature service. User just needs to upload the documents and enter Aadhaar and OTP. After authentication, the organization and the user will retrieve the digitally signed document.

Biometric eSign API: This service allows users to easily sign documents with their fingertips.

PAN eSign API: PAN eSign service makes the documentation process easy and allows the user to sign the document via PAN. To use this service, user just need to upload the document in the API, enter their PAN and OTP.

Iris eSign API: This service allows the user to sign and lock their document with the help of Iris. This API just needs a live selfie for iris scanning and verification. After that, the API sign the document digitally. It is a suitable API to use in the identity verification process.

Conclusion

eSign has transformed the way of document signing in India. It is more secure and legally valid, which makes it a suitable replacement for the traditional signature. There are typically 3 kinds of esign, which include SES, AES, and QES. Most common types of eSigns in India that are used by businesses are Aadhaar eSign, PAN eSign, Biometric eSign, and Iris eSign. They ensure secure and tamper-proof processes.

FAQs

What are different types of e-signature?

The main types of eSignatures are Simple Electronic signature, Advanced Electronic Signature, and Qualified Electronic Signature.

What are the formats of eSignature?

Electronic signature formats can be in the form of simple typed names, scanned images, clickwrap signature, etc.