Why should we use eSignature? What are eSign benefits? Let us learn about the features and advantages of an eSignature in detail.
An eSignature has become essential for businesses for operating with these document execution features:
- Speed
- Convenience
- Legal compliance
eSign can enable seamless, paperless workflows across sectors. With trusted infrastructure like Protean eSign services and strong regulatory backing, India is witnessing a significant shift toward secure, digital authentication. Let us learn more about eSign or eSignature benefits in this article:
What is eSignature?
An eSignature (eSign) refers to an electronic signature that is used by a signatory to sign a document digitally. It represents the intent of a person to agree to the contents of a document or a set of data.
E-Signatures differ from handwritten signatures in that they are executed digitally and can involve multi-layered authentication.
They also differ from digital signatures, which are a type of e-signature that uses cryptographic techniques for enhanced security.
In India, eSignatures are legally valid under the Information Technology Act, 2000, when executed through licensed Certifying Authorities (CA).
Platforms like Protean eGov Technologies (CA) enable secure, Aadhaar-based eSign services that allow real-time, remote document signing with full legal recognition.
Top Features of eSignature Solutions
Businesses choosing an e-signature platform should consider the following main features:
- Tamper-Proof Security: Once a document is eSigned, it becomes tamper-evident, meaning any alterations after signing are immediately detectable. This feature is crucial for contracts, invoices, and financial documents.
- Audit Trails: Comprehensive logs track who signed the document, when, and from where. These digital trails ensure transparency and are often required for regulatory or legal purposes.
- Biometric Authentication: Some platforms incorporate facial recognition or fingerprint-based identity validation, especially in finance and healthcare, ensuring that only the rightful person can execute the e signature.
- Two-Factor Authentication (2FA): To enhance user verification, platforms integrate OTP (One-Time Passwords) or biometric checks alongside passwords, strengthening document security.
- Cloud Integration & Accessibility: Cloud-based eSign services like provided by Protean eGov Technologies allow users to sign from any device, desktop or mobile ensuring seamless workflow continuity. This supports remote work and mobile workforce enablement.
- Blockchain-Backed Verification: Some advanced systems now employ blockchain technology to create immutable records of signed documents, enhancing trust and ensuring long-term record integrity, especially in legal and cross-border contexts.
Advantages of Adopting E-Signatures
E-signature adoption delivers tangible business benefits, often resulting in measurable operational and financial gains. Some of the main advantages include the following:
- Faster Turnaround and Efficiency: Agreements that once took days or weeks to finalise can now be completed in minutes. Whether it’s onboarding a customer or signing a vendor agreement, eSign accelerates business workflows.
- Cost Savings: Organisations significantly reduce costs related to printing, scanning, couriering, and document storage by implementing eSign solutions in their workflows.
- Enhanced Security and Fraud Prevention: With biometric verification, 2FA, and cryptographic sealing, e-signatures reduce the risk of forgery and unauthorised access. For sensitive sectors like banking, this is crucial.
- Regulatory Compliance and Legal Validity: In India, eSignatures executed via Aadhaar-based authentication are recognised under the IT Act and accepted by regulators like SEBI, RBI, and IRDAI. Protean’s solutions, for instance, are UIDAI-compliant and widely adopted across government and BFSI sectors.
- Improved User Experience: Clients and employees can sign documents anytime, anywhere, reducing friction and increasing satisfaction. This is particularly impactful in high-volume sectors such as insurance and e-commerce.
- Enabling Global Business and Remote Work: E-signature platforms enable cross-border transactions and remote contract execution, ensuring compliance with international standards such as eIDAS, and the ESIGN.
- Environmental Benefits: Transitioning to eSigning drastically reduces paper usage, lowers carbon emissions, and aligns with sustainability goals, an increasingly important priority for ESG-focused organisations.
Industry Use Cases
The following are the industry-specific use cases of the eSignature process:
- Finance: Leading banks and fintech firms now use biometric-based eSign for instant account openings, credit approvals, and onboarding processes. Aadhaar eKYC + eSign integration has been central to this.
- Healthcare: Hospitals and diagnostic labs utilise eSign to secure patient consent digitally, speeding up processes, ensuring compliance with HIPAA-like standards, and improving record accuracy.
- Legal: Law firms and corporate legal teams employ blockchain-secured contract workflows, enabling real-time, multi-party signing with full audit logs and court-admissible validity.
- Supply Chain: Logistics and procurement departments implement tamper-evident audit trails to streamline vendor agreements, delivery acknowledgments, and customs documentation.
To know more about the applicability and benefits of the eSignature process, book a demo with Protein eGov.
Conclusion
eSignatures have evolved into a mission-critical technology in the digital transformation journeys of businesses across industries. The emergence of Aadhaar-based authentication, blockchain applications, and API integrations, championed by trusted providers like Protean eGov, is only accelerating this trend.
As the regulatory landscape matures and user trust strengthens, the eSign process will play an even bigger role in enabling fully digital, paperless enterprises, making now the right time for organisations to invest in and scale their eSigning infrastructure.
Frequently Asked Questions
Q1. What is eSignature and how is it different from a digital signature?
ESignature is a broad term referring to any electronic method of signing a document. Digital signature is a type of eSignature that uses encryption and certificate-based verification for enhanced security.
Q2. Are eSignatures legally valid in India?
Yes, under the Information Technology Act, 2000, eSignatures (particularly those based on Aadhaar authentication) are legally valid in India, provided they are executed through authorised Certifying Authorities such as Protean eGov Technologies Ltd.
Q3. Can eSign be used for signing financial documents and contracts?
Absolutely. SEBI, RBI, and other regulators recognise digital contracts signed using compliant eSign platforms for KYC, investment agreements, and financial onboarding.
Q4. How secure is eSigning?
E-signing incorporates multi-factor authentication, encryption, audit trails, and sometimes even blockchain, making it far more secure than traditional methods.
Q5. What are the costs associated with implementing eSign?
The cost varies depending on volume, provider, and integration needs. However, it typically results in significant savings compared to paper-based workflows.
