Have Aadhar? Get eSignatures Too! | DrySign By Exela

Aadhaar eSignatures Promise a Pathbreaking Solution to Signing Documents


The Internet and access to real-time information have revolutionized aspects of daily life for citizens. This has been especially true for India, a country of 1.4 billion. Technology has transformed various customer-facing industries, making it convenient and easy to access for its growing digital users. The country's digital economy has soared thanks to home-grown technological developments and access to multiple platforms and applications. It will increase in size in the coming years due to the rising numbers of digital citizens, internet penetration, growth in online payments, and advanced security measures to protect citizens.

India's digital economy has grown 2.4 times faster than the Indian economy – India Today.

The digital economy has given birth to the need for digital IDs. Verifying these digital identities unlocks access to various critical services, from healthcare to government benefits. Digital IDs have a wide-reaching impact by improving quality of life and maintaining high security and privacy. It helps companies to onboard customers rapidly. When implemented correctly, it allows citizens to avoid bureaucratic hurdles and gain access to services. The Government of India launched Aadhaar in September 2010, a centralized identity framework for storing information on citizens. It was one of the first initiatives of the Digital India program under the aegis of Prime Minister Narendra Modi. The 'Aadhaar Card' would serve as an electronic ID for citizens and be authenticated remotely.

The Aadhaar ID number is unique for each citizen and ensures institutions trust it as an authentic source of identity verification. The digital ID legally recognizes citizens and provides access to goods and services. However, with rising cases of misuse of digital IDs, a lack of a proper mechanism for verifying a digital account has come into question. The answer was found in electronic signatures or eSignatures.

There are over 1.2 billion Aadhaar card holders in India – Statista

Also Read: E-Signatures: Here to stay? Or on their way out?

How eSignatures can help with Aadhaar

Signatories use an electronic signature to sign a document electronically. It holds similar power to wet signatures while adhering to laws prescribed by the Indian government. The government has made several efforts to support eSignatures on electronic contracts to transform India into a paperless economy. The move aims to encourage businesses and customers to assert their consent during an online transaction with an eSignature.

An Aadhaar-based eSign is a legally approved method of signing. To e-sign with Aadhaar, an individual must register his mobile number. And by fulfilling this essential requirement, anyone can e-sign a document irrespective of location. While signing a document, an individual needs to enter their unique Aadhaar number and an OTP that is exclusively sent to their registered mobile number for verification. Post verification, the Aadhaar sign is added to the document.

The legality of eSignatures

The Indian government recognizes eSignatures under the Information Technology Act 2000. Electronic signature technology aims at streamlining data storage, enhancing data security, and improving the ease of business. Its implementation has succeeded, with various companies using it to access services and goods.

The IT Act recognizes eSignatures that combine an Aadhaar number and a one-time password or biometric authorization. It can be used in executing certain business and commercial agreements.

In addition, the signatory must have control over the data to generate eSignature to affix them to documents. Any alterations or modifications to the signature must be witnessed in real-time.

However, you still cannot sign everything with eSignatures. Online signatures are not accepted on the following documents:

  • A power-of-attorney
  • A trust, as defined
  • A contract for the sale or conveyance of real estate.
  • A negotiable instrument
  • A will

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