An Electronic Signature (e-signature) is a digital method of signing documents or authenticating records electronically, rather than using a handwritten signature on paper.
According to the Information Technology Act, 2000 (India):
“Electronic signature means authentication of any electronic record by a subscriber by means of the electronic technique specified in the Second Schedule and includes digital signature.” — Section 2(ta)
It is legally recognized and used for signing contracts, government forms, business documents, tax filings, and more — provided it complies with the law.
Examples of Electronic Signatures:
- Typing your name on a form
- Scanning and pasting a signature image
- Drawing your signature with a mouse
- Signing via Aadhaar OTP (eSign)
- Using a Digital Signature Certificate (DSC)
2. Process of Electronic Signing
The process of electronic signing varies based on the technology and purpose, but here’s a general step-by-step flow:
Step-by-Step Process:
- Document Upload:
- The sender uploads a document to a secure e-signature platform (like DocuSign, Adobe Sign, Zoho Sign, or eMudhra).
- Signer Authentication:
- The recipient (signer) verifies their identity using email, OTP (e.g., Aadhaar OTP), or a digital certificate.
- Signing:
- The signer signs the document using one of the methods:
- Typing or drawing the signature
- Using a DSC token
- eSign using Aadhaar OTP or biometric
- The signer signs the document using one of the methods:
- Timestamping and Encryption:
- The platform encrypts the signed document and attaches a timestamp, digital certificate, and audit trail.
- Finalization:
- Both parties receive a copy of the signed document.
- A tamper-evident log is generated for verification.
3. Benefits of Electronic Signature
| Benefit | Description |
|---|---|
| ✅ Legally Valid | Recognized under the IT Act, 2000 in India and globally in most countries |
| ✅ Convenient & Fast | Enables instant signing from anywhere — reduces turnaround time |
| ✅ Cost-Effective | Saves printing, courier, and physical storage costs |
| ✅ Secure | Uses encryption, authentication, and tamper-proof logs |
| ✅ Audit Trail | Maintains metadata like time, IP address, and user info |
| ✅ Eco-Friendly | Reduces paper use and carbon footprint |
| ✅ Remote Friendly | Useful for remote work, online banking, and digital government services |
4. Challenges of Electronic Signature
| Challenge | Details |
|---|---|
| ⚠️ Forgery Risk (for simple signatures) | Basic e-signatures (like typed names) can be spoofed |
| ⚠️ Legal Limitations | Not valid for all types of documents (e.g., wills, property sales in India) |
| ⚠️ Technology Dependence | Requires internet, digital literacy, and secure platforms |
| ⚠️ Compliance Variability | Different countries or states have different recognition laws |
| ⚠️ Identity Verification Issues | Inadequate verification may lead to misuse |
| ⚠️ Cybersecurity Threats | Needs strong data protection to prevent hacking or tampering |
⚖️ Legal Status in India (Summary)
- Governed by Sections 3 and 3A of the Information Technology Act, 2000
- Must use approved methods (e.g., Digital Signature Certificate or Aadhaar eSign)
- Recognized for business, legal, and government use (except for a few exceptions)
- Certifying Authorities (CAs) like eMudhra, Sify, and NIC issue digital signatures
