Aadhaar e-signature is a legal and secure method of digitally signing documents using an Aadhaar card. It’s considered a valid form of electronic signature under Schedule II of the Information Technology Act, 2000.
Aadhaar Esign is considered equivalent to a wet signature. It’s used to sign various documents and is a method encouraged by the Government of India.
This glossary will outline everything related to Aadhaar eSign, including the processes, legality, validity, eligibility, and service providers.
Aadhaar eSign is a seamless and scalable method of electronic signatures that operates through the guidelines of the CCA (Controller of Certifying Authority).
Here’s a step-by-step breakdown of how Aadhaar eSign works in the backend:
It’s as simple as this. For a user on the front end, it’s a matter of seconds to get an Aadhaar eSignature on their document. However, this process must have a secure backend verification to avoid misuse of Aadhaar and instances of stolen OTPs.
Important note: It’s the responsibility of the ASP to ensure that all parties receive the document with an e-signature on it.
There are two legal methods of eSign in India: Aadhaar eSign and DSC (Digital Signature Certificate). While both of these methods use the same method for attaching signatures, they have a very distinct authentication process.
DSC is a secure digital key that authenticates the user’s identity with a pair of public and private electronic keys. It usually includes information such as the name and email address of the user and the issuance date of the certificate. DSCs are stored on USB tokens, meaning a user will always need their physical token to eSign.
Aadhaar eSign, on the other hand, authenticates the user’s identity through biometrics, iris, or OTP. All the user needs is an Aadhaar card/e-Aadhaar and a phone/email linked to the Aadhaar number to request Aadhaar eSign. There is no need for any physical device requirement.
While Aadhaar eSign is accessible to all with an Aadhaar card, DSC is difficult and expensive to procure. The Aadhaar method of eSign is scalable and cost-effective for organizations to authenticate users on a large scale.
Aadhaar eSign is endorsed by the Indian government. This definitely adds to the credibility and viability of the digital signature through Aadhaar.
Aadhaar eSign is an easy replacement for wet signatures and can be used to sign nearly all sorts of documents. This includes:
Despite its broad scope, there are a few documents where Aadhaar eSign or any digital signature won’t work. This includes:
Now, Aadhaar eSign has a broad scope of use. It can be incredibly useful for different industries, especially financial institutions. With Aadhaar eSign, you can now facilitate the secure signing of financial documents without requiring the physical presence of a person. This will speed up your approvals and reduce your paperwork. It’s a cost-efficient technology that will also verify the customer’s identity for your KYC processes.
Yes, the Aadhaar eSign is legally valid and recognized in India.
On 28th January 2015, the Gazette Notification No. 2015 Jan – GSR 61(E) was passed by the Central Government. This notification was entitled “Electronic Signature or Electronic Authentication Technique and Procedure Rules, 2015”.
With this notification, Aadhaar eSign was added to Schedule II of the Information Technology Act, 2000. Further, Section 5 of the IT Act offers electronic signatures legal validity, making them equivalent to physical signatures.
Aadhaar eSign operates according to the technical and regulatory framework set up by the Controller of Certifying Authority (CCA). Every organization in India using Aadhaar for eSignature has to follow the guidelines set up by the CCA.
Anyone can sign with the Aadhaar eSign given,
Signing a document digitally is as simple as this. Large-scale financial industries and banks can benefit from the quick eSignature method to reduce their processing times.
ESPs are licensed authorities offering eSign services using Aadhaar authentication in India. These are central entities that facilitate the Aadhaar eSign transactions between the user, UIDAI, and the CA (Certifying Authority).
According to Indian regulatory laws, the ESP should be owned and operated by the CA. Apart from NDSL and CDAC, some of the key ESPs in India are E-Mudhra, IDSign, ProDigiSign, and a couple more.
Businesses and financial institutions can partner with licensed ESPs to offer digital signing services to their users. The APIs seamlessly integrate with the workflows, allowing the application users to get e-signatures on their documents in microseconds.
The efficiency and security of Aadhaar eSign make it a perfect inclusion in the workflows of high-risk and regulatory businesses. Using Aadhaar eSign, you can validate the user’s identity and speed up your regulatory and KYC processes.
With Hyperverge, you can easily onboard users without struggling with ESP downtime. Our plug-and-play API offers seamless integration and validates the user’s name with Aadhaar to prevent fraud. Our thorough fraud prevention measures and partnership with multiple ESPs ensure a smooth and secure e-sign process for businesses and their customers.