E-signature and digital signature are two concepts that frequently overlap and cause misunderstandings and confusions in the busy world of Indian commerce and trade. As paper trails disappear and digital clicks rule supreme, users need both of them to electronically sign the documents. However, it is important to understand that the specifications of each one of them are different and need to be used as per the rules and situation. Let’s solve the puzzle and prepare you to confidently use each one of them in the right moment and place in the e-world. Your must know, e signature vs digital signature, which is the right signature for your purpose.
E-Signature: Your Digital Penmanship
Imagine your handwritten signature in digital form, placed at the bottom of a document on the laptop screen. In essence, that is an electronic signature. A mark or signature that indicates an agreement in an electronic form is called an electronic signature or e-signature. An electronic signature can be as simple as pasting your signature image into a Word or PDF document. An electronic signature even appears in your email signature. It is quite like checking on a box or selecting ‘Accept’ on an online form. The e-signature depicts your intention to provide your consent in the document. E-signature enables signers to accept or consent to a document’s terms.
The electronic signature, which signifies the signatory’s permission and assent, binds the consumer legally. E-signatures are a reflection of a transaction’s authenticity. Cryptographic digital data is used to create electronic signatures, which are unfakeable. The idea of electronic signatures was developed in the digital sphere since handwritten signatures cannot be produced for transactions that take place online.
Under Indian law, electronic signatures are specified as –
- The Information Technology (Amendment) Act of 2008 established electronic signatures under Section 3A.
- According to Section 5 of the Information Technology Act of 2000, when an e-signature is completed in the correct way, it is equivalent to a physical signature.
- According to Section 65-B of the Indian Evidence Act of 1872, they can also be used as evidence in court.
In case, there is a disagreement over an electronic signature on any document, the Section 67A of the Indian Evidence Act, 1872 provides that the signatory must prove that the signature is his.
Identity theft of an electronic signature is punishable under Section 66C of the Information Technology Act of 2000.
Digital Signature: Your Secure And Approved Seal
The digital signature can be thought of as a more secure digital equivalent of a traditional handwritten signature. A digital signature is a special, encrypted seal that is integrated into the core structure of your document. A digital signature uses a cryptographic process in conjunction with encryption technology to ensure the integrity of the document and offer protection. It is essentially a code that is appended to a message or document to guarantee that it hasn’t been altered in transit from the sender to the recipient.
According to the Information Technology (IT) Act of 2000, the signer must get a Digital Signature Certificate from a Certifying Authority that has been licensed by the Controller of Certifying Authorities to create electronic signatures. The CA confirms the identity and residence of the signer before they issue a DSC. The hardware cryptographic tokens are one-time use devices. They store the private key that is used to create electronic signatures. The widespread use of digital signatures is required to provide paperless services to Indian citizens. One needs to apply for Digital Signature Certificate from an authorised DSC provider.
What distinguishes a digital signature from an electronic signature?
Here are some of the features that distinguish e-signature from a digital signature –
- Security: Because digital signatures are cryptographic in nature, they provide strong security and are legally binding and impenetrable. However, despite offering convenience, e-signatures are less secure and might not be upheld in court unless Indian regulations specifically permit them. Where e-signatures are vulnerable to tampering, the digital signatures are highly secure.
- Validation: While e-signatures are used to verify a document, the digital signatures are used for securing a document. A trusted certification authority can verify the authenticity of digital signatures, thanks to their integrated verification methods. On the other hand, the validation of e-signatures is not done by any trusted certificate authorities.
- Legality: In India, digital signatures are highly recognized by the Information Technology Act of 2000. Depending on the situation and particular laws governing their use, e-signatures may or may not be enforceable.
- Usage: High-stakes transactions and financial records such as contracts, financial records, and government files are best served by digital signatures. Low-risk agreements, such as those found in internal documents or online forms, are appropriate for e-signatures.
- Preference: Digital signatures are generally preferred because they are more authentic. Despite being easy to use, e-signatures have a lesser evidential value.
When to Use Each One Of Them
Make use of a digital signature:
- When tamper-proof verification and legal bindingness are essential (e.g., signing contracts, submitting taxes)
- When interacting with official government processes that call for DSCs (such as company registrations and e-tendering),
- When safeguarding valuable financial records and transactions
- For workflows and document approvals
- In agreements made online
Make use of an electronic signature:
When speed and ease of use are your top priorities without any worry about admissibility or legal validity.
Wrapping up
The terms ‘electronic signature’ and ‘digital signature’ are frequently used interchangeably, as you may have noticed. Nevertheless, the two are not the same. While an electronic signature is not always digital, a digital signature is always electronic. Digital signatures and e-signatures are two different tools, each with unique advantages and disadvantages. Depending on the transaction’s goal, legal requirements, and security, one can pick the appropriate instrument for the job.