With the digital
revolution, signing documents online has become a necessity for businesses,
professionals and individuals. Now, in this arena we generally hear these two
terms a lot - Digital Signature & eSign (Electronic Signature). Even if
people use them interchangeably, the two are not synonymous.
Difference
between Digital Signature and eSignature, legal validity in India, use cases
& which one to go for This is a blog explaining addition of key differences
in digital signature Vs eSignature validity in India use case where one can use
what.
What Is a Digital Signature?
Digital
Signatures - A digital signature is cryptographically secure and verifies that
signer is who they say they are. It is signed by a Certifying Authority (CA)
and it proves the identity of the signer.
Digital signatures ensure:
Authentication
of the signer
Integrity of the document
Absence Of Reparability (the signer cannot deny signing)
In India,
Digital Signatures are now regulated under the Information Technology Act 2000
and have become very common for both government as well as statutory filings.
Common Use Cases
- MCA filings
- Income tax returns
- GST filings
- Tender submissions
- Legal and compliance
documents
eSign (Electronic Signature)
Explained
An eSign
actually makes it simpler and faster to sign documents electronically. It is
designed to provide users with the ability to digitally sign documents using
Aadhaar-based authentication, OTP (one-time password) verification or biometric
validation -- without deploying a physical USB token.
Legally
valid eSignatures for quick approvals and everyday business documents.
Common Use Cases
- Agreements and contracts
- HR onboarding documents
- Bank and NBFC forms
- Consent letters
- Business approvals
Digital Signature vs eSign: What is the
Difference?
|
Feature |
Digital Signature |
eSign Signature |
|
Technology |
PKI-based
encryption |
Aadhaar/OTP-based |
|
Hardware
Required |
Yes
(USB token) |
No |
|
Level
of Security |
Very
high |
High |
|
Legal
Validity |
Yes (IT
Act, 2000) |
Yes (IT
Act, 2000) |
|
Best
For |
Government
& compliance filings |
Everyday
business documents |
|
Ease of
Use |
Moderate |
Very
easy |
|
Cost |
Higher |
Affordable |
Are Digital Signatures and
eSignatures valid in India?
Yes.
Digital and signatures are legally valid in India according to Information
Technology Act 2000 script. They are accepted by:
- Government departments
- Courts
- Banks and financial
institutions
- Private organizations
Which One Should You Choose?
Choose a
Digital Signature if:
- You are required to file
statutory or governmental forms
- High level of security and
compliance needed
Choose an eSign if:
- You desire a quick,
paperless signing of the documents
- No hardware dependency is
preferred
- You work with lots of
business or HR docs
Benefits of going Digital and
eSign Signature
- 100% paperless process
- Faster document approval
- Secure and tamper-proof
- Cost and time efficient
- Environment-friendly
Final
Thoughts
Digital Signature vs. eSignature — Though both are used for signing documents online,
they have different use cases. Knowing the difference enables you to select the
appropriate solution for your security level, compliance needs and desired ease
of use.
Adopting
digital processes saves time and money, and it also enhances efficiency and
trust in the fast-paced profit-making environment of today.
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