Do you want to reshape the way you live, work and connect? Guess what, digital transformation over the last two decades have already brought in the era of paperlessness. Businesses now look for quick, secure ways to complete agreements online. This can help to sidestep the old routines of printing, signing by hand, and scanning. 

In India, the digital infrastructure and legal clarity have made electronic signatures easily available for businesses. Of the options available, Aadhaar eSign is particularly significant. 

Here is all you want to know about what Aadhaar eSign is, how documents can be signed online securely and its legal validity.

The limitations of paper-based document signing

The traditional pen-and-paper signing method is no longer adequate in today’s fast-moving world. They don’t meet the demands of modern businesses because this method is slow and no longer secure.

Slows down progress: Paper documents are inefficient. It delays the process because of steps like printing, couriering, and arranging in-person meetings. The delays stretch even further when signatories are scattered across different cities or time zones. This leads to missed revenues and distracted teams.

Costs more than you think: Using paper isn’t cheap. The cost ranges from ink, printers, and maintenance to postage and physical storage. These small costs pile up over time. There is also a need for off-site archives and bulky filing systems. Sometimes, lost files have to be recreated. When the volumes are high, these small expenses snowball.

Leaves you open to security risks: Ink signatures might offer limited protection. They can be forged, tampered with, or misused. Without the help of the experts, it’s difficult to verify them. They can also be stolen, damaged, or lost.

Modern ways to sign documents without printing  

A range of digital signing methods has emerged to overcome the drawbacks of paper-based document signing. There are different types of electronic signatures that allow users to sign documents online. Each of these methods offers different levels of convenience and security.

Typing your name: The most straightforward option is to type your name into a document’s signature field. However, typed names offer no means of verification.

Drawing with a mouse or touchscreen: Another popular way is to use a finger, stylus, or mouse to draw your signature. It resembles your handwritten version. Still, its security depends on the platform. Drawn signatures can fall short when legal compliance or sensitive information is involved if the platform doesn’t offer an built-in verification,

Using an image of your signature: Some users upload a scanned copy of their handwritten signature. This offers a familiar feel for those used to physical paperwork. However, a scanned copy of signatures can be easily misused if it falls into the wrong hands.

Verified e-signatures for added security: For stronger protection, many e-signing tools include verification layers. This includes email or SMS confirmations, identity questions, and multifactor checks. These add credibility and help verify the identity of the signatories.

Electronic signatures and their legal standing in India

A strong legal framework is required for electronic signatures to be acceptable. India has put in place a legal framework that affirms the legitimacy of electronic signatures. The Information Technology Act, 2000 (IT Act) equates electronic signatures with handwritten ones for most types of contracts and transactions. According to Section 10A of the Act, a contract does not lose enforceability merely because it was concluded in electronic form.

The law acknowledges two main categories of electronic signatures:

• Aadhaar-based eSignatures with eKYC: In this method, the signer's identity is authenticated by combining Aadhaar’s unique ID system and electronic Know Your Customer (eKYC) verification.
• Digital signatures using asymmetric encryption: These are generated with a pair of cryptographic keys, private and public. It typically requires a Digital Signature Certificate (DSC) issued by a government-approved Certifying Authority.

To be recognised as valid under the IT Act, an electronic signature must satisfy these conditions:

1. It must be uniquely associated with the signatory.
2. The signatory should have exclusive access to the signature creation data at the time of signing.
3. Any post-signature changes to the document or signature must be clearly detectable.
4. A secure and traceable record of the signing process.

In the case of digital signatures, the DSC must come from a Certifying Authority recognised by the Controller of Certifying Authorities (CCA).

However, certain documents are excluded from the scope of electronic execution. These include most negotiable instruments, powers of attorney, trust deeds, wills, and agreements for the transfer or sale of real estate.

How to sign documents using Aadhaar eSign

eSign using Aadhaar enables individuals to digitally sign documents through a secure process. It involves Application Service Providers (ASPs), eSign Service Providers (ESPs), UIDAI, and Certifying Authorities (CAs). Typically, the signer reviews the document and consents to eSign. The identity of the signer is verified via Aadhaar-based OTP or biometrics, and a digital signature certificate is issued. This certificate is applied to the document, which is then delivered securely, with encryption and regulatory compliance.

Advantages of Aadhaar eSign over other online Signing methods

Aadhaar eSign is preferred by businesses for some of the following key reasons.

Enhanced security: It is backed by UIDAI, India’s national identity authority and this has made Aadhaar eSign secure. Multi-factor authentication helps prevent fraud.

Increased efficiency and speed: Using Aadhaar eSign has eliminated the need for physical paperwork and thus, reduces the document signing time from days to minutes. 

Cost-effectiveness: It is cost-efficient as it has eliminated costs for paper, printing, postage, and physical storage.

Legal validity and enforceability: ESign using Aadhaar is legally valid under the Information Technology Act, 2000, and has a presumption of validity under the Indian Evidence Act. It’s widely recognised by government departments, banks, and businesses.

Accessibility and scalability: It is accessible to a large portion of India’s population due to the popularity of Aadhaar. This makes it scalable for industries like finance, insurance, healthcare, and government services.

Conclusion

Traditional paper-based document signing has its inherent inefficiencies, costs, and security vulnerabilities. It stands in stark contrast to the secure, cost-effective, and efficient approach offered by eSign using Aadhaar. The Aadhaar identity system provides for strong authentication and legal validity. Solutions like eSignPro can streamline the signing process and ensure its broad acceptance across diverse sectors. Robust and user-friendly platforms such as Protean eSignPro can be crucial to foster seamless, compliant and secure e-signing of documents.

Also read: 

• Mismatch in Aadhaar & PAN Details? Here’s How to Correct It

• Aadhaar PAN link: How to seamlessly connect your financial identities online

• Protean has been & appointed as a Registrar of Unique Identification Authority of India (UIDAI) to facilitate registration of Residents for obtaining Aadhaar. Protean offers online Aadhaar authentication to validate the identity of the Aadhaar holder vis-à-vis UIDAI information.

• Step-by-Step Guide to Opening an NPS Account in 2025