Written signatures
A person's actual physical stamp on documents. Usually, it involves writing your name in cursive on a piece of paper, a contract, or a document, with initials on each page that indicate the terms of the agreement.
MOHAR e-Sign Agreements · a DataHaat product
CSP / KO onboarding using e-signature with e-Aadhaar.
Mohar puts a legally valid digital seal on your agreements — Aadhaar OTP-based e-signatures with templates, bulk signing and a complete audit trail. Contracts that took weeks, executed in minutes.
Legally valid · IT Act, 2000
Aadhaar OTP-based
Full audit trail
▮ Audit trail
Invited 2 signers
OTP verified ✓
Signed & sealed ✓
CSP_Agreement_047.pdf
AADHAAR eSIGN
OTP sent to +91 ••••• ••8714·7·2·9
Signed
● SEALED · UIDAI VERIFIED
Executed in under 10 minutes
The basics
What is an e-signature?
E-signature, or electronic signature, is the computerized version of a wet ink signature. These signatures are specific to the document that requires authenticity and signatures from all parties. Electronic signatures are quick and secure substitutes for written signatures, and they are also simple to use.
Any official agreement can be executed quickly and easily by completing an electronic signature online. Entering an OTP that was sent to the signer's email or mobile device is all that is required to validate a document. In order to later confirm the authenticity of the signed document, information about the signers, including their location, IP addresses, and remarks, is saved once an agreement has been electronically signed.
However, hash algorithms or a collection of algorithms like DSA and RSA that combine public key and private key encryption are what create digital signatures. A digital thumbprint that can be used to identify the data as having been sent is produced when the sender uses the private key to sign the message digest rather than the actual data.
It is important to stress that every tool used to digitally sign a document has a numerical focus. Digital signature systems use algorithms to transform the document to be signed and the private key, which is already in character form, into a new set of encrypted characters.
The Indian Contract Act and the IT Act of 2000 jointly regulate the legality of eSignatures in India. According to the IT Act, in order to establish electronic signatures (CCA), the signer must get a Digital Signature Certificate (DSC) from a Certifying Authority (CA) that has been authorized by the Controller of Certifying Authorities. PDFs and documents can now be electronically signed by users.
Know your signatures
Types of e-signatures
Fundamentally, a signature signifies agreement to specific terms, as found in a contract — so it must be distinct and verifiable. As cryptographic techniques have evolved, signatures have assumed many forms. There are four primary types used in business, and their meanings are often misinterpreted.
Click-wrap signatures
Mostly utilized for online transactions, where a straightforward checkmark in a box indicates agreement with the website's terms and conditions. The user must first click the box in order to use the services.
Electronic signatures (e-signatures)
A wet signature in electronic form, for which the legality and description of use have been specified in a number of countries. These are the most often used signature formats for companies worldwide.
Digital signatures
One kind of authentication that enables a code to be appended to a document as a signature. It is necessary for specific agreements and is given by a certifying body.
The case for going digital
Offline vs online signature
| Offline signature | Online signature | |
|---|---|---|
| Nature | Paper-based | Digital |
| Legality | Legally valid | The IT Act of 2000 permits the use of two types: dongle-based DSC and OTP-based eSign. |
| Viability | Limited. Requires the individual in question to be physically present. | No limit. Documents can be e-signed anywhere in the world using a device that can connect to the Internet. |
| Security | Vulnerable. For instance, there have been repeated instances of fraud and document fabrication. | The audit-trail method guarantees the complete authenticity of the document and the online signature, as well as the absence of any wrongdoing. |
| Cost | Despite being ostensibly inexpensive, it requires paper, inventory, storage, and frequently a lot of manual labor. | Significantly less expensive because the eSigner simply requires an Internet-connected device. |
Aadhaar Act · the basics
What is Aadhaar?
The name "Aadhaar," which literally means "Foundation," is drawn from the Hindi language.
Over a billion Indians' names, fingerprints, iris, address, age, gender, and 12-digit Aadhaar number are stored in the cloud database identification system known as Aadhaar. It was implemented in 2009 by the government that was in power at the time in order for the State to provide welfare payments to people who were eligible.
Since Aadhaar is an open-access program, third parties (including businesses, banks, and individuals) are free to use it. These days, banks, insurance companies, government agencies, and others utilize fingerprint readers, which are thought to be the safest way to verify identity. This is due to the fact that fingerprints are unique to each individual and that online saved prints are impenetrable.
The creation and contribution of IndiaStack, a collection of intricate digital infrastructures that enable data sharing and storage, should also be acknowledged. Birth certificates, medical records, tax returns, credit reports, and medical statements are examples of data. A unified payment interface (UPI), like the Bharath Interface for Money (BHIM) or the soon-to-be-proposed Aadhaar Pay, can be used to connect any payments that need to be made.
Aadhaar's foundations
The largest digital identity endeavour in the world
To put all Indian people under the purview of digital identity, UIDAI and its then-chairman, Nandan Nilekani, led the Aadhaar program. Every Indian citizen who participates receives a 12-digit Aadhaar number, which functions as a proof of identification and evidence of residency.
The Aadhaar program is the largest digital identity endeavor in the world, with several billion citizen accounts already, even though it is not mandatory. UIDAI gathers the demographic data of individuals registering for Aadhaar and stores it in a database. eKYC service providers can use this data (with the approval of the client) to confirm the identity of the consumer.
For Aadhaar enrollment, biometric and demographic data are gathered. These are then utilized for de-duplication to guarantee uniqueness and produce a unique Aadhaar number. Here's the information collected for Aadhaar:
Demographic information
Name, Date of Birth (verified) or Age (declared), Gender, Address, Mobile Number (optional), and Email ID (optional).
Biometric information
Ten fingerprints, iris scan, facial live picture.
Note that this set of demographic information is collected only for self-enrollment in Aadhaar.
Strong Customer Authentication
Why Aadhaar satisfies SCA
Strong Customer Authentication (SCA) and Aadhaar are closely related concepts. The EU Revised Directive on Payment Services (PSD2) serves as the foundation for the SCA set of regulations — authentication using two or more of the following components:
Knowledge criterion
Something that only the client is aware of.
- Password
- PIN
- OTP
- Challenge questions
Possession criterion
Anything that only the client owns.
- OTP
- QR code
- OVD
- Electronic evidence
Inherence criterion
What the user alone is.
- Biometrics
- Facial matching
- Voice recognition
- Vein recognition
- Keystroke dynamics
Because it generates PINs and OTPs for user authentication and saves biometric data, Aadhaar satisfies both the Possession and Inherence criteria.
IT Act (2000) · criteria for legality
The legal basis of e-signatures
The legality of electronic signatures in India is governed by the Indian Contract Act and the IT Act, 2000. According to Section 2(1)(a), a subscriber's process of authenticating an electronic record using the electronic technique specified in the Second Schedule constitutes an "electronic signature," which includes a digital signature.
- Under Section 3 of the Information Technology Act of 2000, procurement related to electronic record validation is permitted. Section 5 stipulates that every electronic signature must have a valid acknowledgment.
- The Information Technology Amendment Bill, 2006, introduces a little distinction between the advanced mark and the electronic sign by substituting "electronic" for "computerized" in a few places in the crucial demonstration.
- Although there are many different types of electronic marks, the computerized mark is one of the many types of eSigns.
- The guidelines, also referred to as the electronic signature or electronic verification strategy and technique regulations, 2015, changed the Information Technology rules in the latter part of 2015.
- To make it easier to use electronic records as part of the evidence that is presented to courts, the Indian Evidence Act has been changed.
- Electronic signs require consent even though they are significant and legally binding.
- Section 10A of the Information Technology Amendment Act of 2008 addresses the validity of contracts created electronically.
Section 3A · Schedule 3
When is an e-signature valid?
Section 3A, Schedule 3 of the Information Technology Act of 2000 states that an electronic signature is considered valid if all of the following criteria are satisfied:
The information created during the creation and verification of a signature is unique to the signatory and the authenticator.
Only the signatory to the electronic document intends to sign and manage the electronic signature.
Any modifications made to data, information, signatures, or anything else are apparent and observable.
The notice in the Official Gazette satisfies the requirements set by the Central Government.
In essence, authorized CAs that issue eSign online are always ipso facto genuine, but all other forms of electronic signatures need to demonstrate their validity and dependability in compliance with Section 3A in order to be accepted.
Section 5 · Amendment to the IT Act, 2000
Requirements for legitimate e-signatures
Any trustworthy signature that satisfies these requirements is authentic and recognized by law:
- The electronic signature must be specifically linked to the document's signer in order to be completed online. To meet this need, a digital ID based on a digital certificate is usually provided.
- Any changes made to the document that the e-signature is linked to must be available. This is accomplished by encrypting the document and using a tamper-evident seal.
- The Certifying Authority (CA) that issues the digital signature certificate needs to be approved by the Controller of Certifying Authorities (CCA), which is permitted by the IT Act.
- There must be an audit trail accessible that describes the steps taken during the online e-signing process.
- Only the signatory to the electronic document intends to sign and manage the electronic signature.
- Any modifications made to data, information, signatures, or anything else are apparent and observable.
- The authenticity of digital signatures issued by authorized CAs is essentially always ipso facto, while all other forms of electronic signatures must demonstrate their dependability and validity in compliance with Section 3A in order to be considered legitimate.
- At the time of signing, the signer must have total control over the data utilized to generate the electronic signature. To meet this criterion, the majority of online e-signature service providers allow signers to instantly attach their e-signature to the document.
Use cases
Which documents can be e-signed?
A variety of papers can be signed using an electronic signature, such as:
Offer letters
A document that a company sends to a prospective employee outlining the main conditions of their employment.
Sales contracts
A formal agreement that specifies the price at which a buyer and seller will buy assets.
Permission slips
Documents that a school or other organization sends home with a child, requesting the parent's signature to permit the child to go on an excursion under the organization's supervision.
Rental / lease agreements
A written contract between a property owner and a tenant who wants to temporarily occupy the property.
Liability waivers
A legal document that a participant in an activity signs to acknowledge and agree to the risks involved, relieving the company or individual of legal responsibility.
Financial statements
Formal documentation of the financial activities and circumstances of a company, person, or other organization.
MeitY · September 26, 2022
Expanded document types (2022 amendment)
A modification to the IT Act of 2000 has expanded the number of papers that can be eSigned. In addition to the previously listed items, the following can now be eSigned:
- Checks, demand promissory notes, and bills of exchange for entities regulated by the Reserve Bank of India (RBI), National Housing Bank (NHB), Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDAI), and Pension Fund Regulatory and Development Authority (PFRDA).
- Powers-of-attorney (PoA) by which an organization governed by the RBI, NHB, SEBI, IRDAI, and PFRDA may act on behalf of and in the name of the person executing them; any agreement pertaining to the sale or transfer of real estate or any stake in it.
The exceptions
Documents requiring physical signatures
Certain documents that need to be notarized or registered with a Registrar or Sub-Registrar can only be signed by hand in order to be legally binding:
Negotiable instruments
Pertaining to transactions between individuals.
Powers of attorney
Between individuals.
Trust deeds
Wills
And any other testamentary disposition.
The mechanics
How does Aadhaar eSign work?
Per the IT Act of 2000, only two kinds of e-signatures are allowed in India:
OTP-based e-signatures
An OTP verification can be sent to the interested party's registered email address and mobile number in order to sign documents. Both electronic signatures and Aadhaar use this OTP-based process.
USB token e-signatures
A USB token and a Digital Signature Certificate (DSC) are put in this hardware-based signature. It can be accessed via a computer to electronically sign documents in large quantities and establishes signatures using the public key infrastructure (PKI).
Aadhaar eSign process
Since an OTP is issued to the user's registered cellphone number in order to validate the eSignature, Aadhaar signatures fall under the category of OTP-based electronic signatures.
Six steps, start to finish
Step-by-step process
Log in
to the eSign portal.
Upload documents
in bulk, or create them using templates.
Invite
signers in parallel or sequence via email or SMS.
Receive
OTPs on registered email and mobile.
eSign
instantly & remotely using the OTPs sent.
Download
the eSigned documents.
Under the hood
Detailed workflow
The user will upload the document that needs to be signed after logging into our signing portal.
- The document's signers will be added by the user. The user can designate a sequence for the signers and add more than one signer to the document. To add a signer, the user must supply their name and email address.
- The user then initiates the Aadhaar signature invitations.
- A link to sign the document will be sent to the signer via email and SMS.
- The signer will see a preview of the document as soon as they click on the link.
- The signer must click the "proceed" button after entering their name as it appears on their Aadhaar.
- After being taken to the NSDL site, the signer will provide their Aadhaar number and select "Generate OTP."
- The signer's Aadhaar-registered cellphone number receives an OTP. The signer inputs the OTP into the designated interface after receiving it.
- The document bears the signer's signature after the OTP has been verified.
- The final signed agreement is emailed to all parties involved once all signers have completed it.
Who benefits
Advantages of eSigning the Aadhaar way
Many sectors that depend on signatures on a daily basis have benefited from the advent of electronic signatures. The following sectors make substantial use of e-signature convenience:
Finance sector
NBFCs, banks, and other financial institutions handle millions of papers every day, such as mandate forms, permission forms, sanction letters, and contracts. Any bank's loan authorization, check truncation, CRM, or ERP procedures can be combined with Mohar's eSignature software and eSign workflow to enable the production, e-signing, and online management of digital documents. An eSign solution is necessary for finance departments to expedite their paperwork tasks. Mohar's Aadhaar eSign solution makes it simple for finance departments to create their own agreements, have management approve them, and have them eSigned in a matter of minutes.
Legal fraternity
More than any other business, legal firms are hindered by paper documentation. Companies spend days preparing, negotiating, and signing legal agreements, and documentation is undoubtedly the most crucial aspect of any legal expert. Legal teams from several industries produce agreements and contracts on a large scale. Legal teams may easily prepare, approve, negotiate, and execute agreements on a single platform with the help of Aadhaar eSign's templatization tools. To assist legal teams in ensuring compliance and doing due diligence, Mohar also provides signer verification features and a robust audit trail.
Healthcare and medical business
Healthcare organizations may automate much of their documentation with customized eSign processes, freeing up more time for patient care. Healthcare facilities can prepare agreements and patient forms in bulk using a variety of templates offered by eSign-based documentation solutions. The templates include pre-authorization documents, medical claims documents, customized prescription slips, and other documents. When a medical document is created online, it is sent to all pertinent stakeholders for eSignatures after being digitally verified by all parties. The document can be signed using many methods, including DSC (Digital Signature Certificate), PAN-based, Aadhaar, and electronic signatures.
Insurance sector
Using an automated eSign approach and an electronic signature system, insurers may swiftly create policy documents and eSign insurance documents. In the latest push for complete digitization, IRDAI has released a circular permitting all general and health insurers to offer electronic health plans and enabling customers to consent to proposal forms using digital OTP-based processes. Insurance documents can be drafted using large template libraries, managed on a smart dashboard, and signed by a number of healthcare practitioners, hospital management, and executives.
Retail sector
Companies in the FMCG and retail industries must be quick and efficient if they hope to stay in business. Vendor agreements need to be written rapidly, distributed to vendors quickly, and then signed even faster. Contracts must be signed for transactions in eCommerce and retail establishments, where eSign can streamline the transaction between the buyer and seller. Businesses can quickly engage vendors and get agreements eSigned to streamline supply chains using Mohar's eSignature solution, which includes legally valid contract templates, automated eSign workflow, and OTP-based online signatures.
Business proposal
The Corporate Business Correspondent model
Our business proposal focuses on implementing the Corporate Business Correspondent (BC) model by leveraging e-Aadhaar signed documents. This model enables financial institutions and service providers to extend banking and financial services to underserved populations, especially in rural and semi-urban areas.
By utilizing e-Aadhaar authentication, businesses can streamline customer onboarding, ensure secure and instant identity verification, and reduce the dependency on physical paperwork. The integration of digital verification minimizes fraud risks, enhances regulatory compliance, and improves operational efficiency.
The proposal outlines a strategic approach for implementing the Corporate BC model, detailing potential partnerships with financial institutions, technology integration, risk mitigation strategies, and scalability plans. The objective is to create a seamless, technology-driven financial inclusion framework that benefits both businesses and customers.
Why e-Aadhaar
Benefits of e-Aadhaar signed agreements
Legally valid and secure
E-Aadhaar signed documents are digitally signed by the Unique Identification Authority of India (UIDAI), making them legally valid under the Information Technology Act, 2000. The digital signature ensures authenticity and prevents tampering, enhancing document security.
Convenience and accessibility
E-Aadhaar can be downloaded anytime from the UIDAI website, eliminating the need for physical copies. This makes it easy for users to access their Aadhaar details anytime, anywhere, without worrying about document loss.
Environment-friendly
Using e-Aadhaar reduces the need for paper-based documents, contributing to environmental conservation by minimizing paper usage and waste.
Instant verification
Organizations can instantly verify e-Aadhaar documents using the UIDAI verification portal. The digital signature helps institutions confirm the document's authenticity, reducing processing time and fraud risk.
Tamper-proof and authentic
The digital signature embedded in e-Aadhaar documents ensures they cannot be altered or forged, increasing their reliability for identity verification and official purposes.
Accepted across various services
E-Aadhaar signed documents are widely accepted by government agencies, banks, telecom providers, and other institutions for KYC (Know Your Customer) processes, reducing the need for multiple identity proofs.
Enhances data privacy
Since e-Aadhaar is password protected, it provides an additional layer of security, ensuring that only authorized individuals can access the document.
Reduces dependency on physical Aadhaar
With the availability of e-Aadhaar, users do not need to carry their physical Aadhaar card everywhere, reducing the risk of loss or damage.
Why Mohar
Tailor-made for the Corporate BC model.
Our solution is tailor-made for the Corporate Business Correspondent model — ensuring the following benefits for CBCs opting for our agreement signing solution:
- We directly integrate the BC's Master into our signing solution.This eliminates multiple data inputs, which results in minimizing errors in agreements, saving time, and ensuring correctness of KO/CSP related data.
- Costing on a per-document / CSP basisMost providers charge per signature — our per-document pricing results in savings for the CBCs.
- Multiple users, no extra costWe allow multiple user logins without any extra cost.
- Built-in federal structureAllows companies to enable document signing at branch offices.
- Audit trail of all eventsCaptured to help protect against fraud, disputes, and unauthorized changes.
- Extensive MIS reportsCovering financial, operational, and other business metrics.
- Very receptive to new ideasLast but not least — we take new ideas seriously and integrate them into our workflow.
E-Aadhaar signed documents provide a secure, convenient, and legally valid way of proving identity and availing services. Leveraging e-Aadhaar within the Corporate Business Correspondent model strengthens financial inclusion efforts, enabling efficient service delivery and enhancing trust in digital transactions.
Contact us
Instantaneously e-sign documents with Mohar's Aadhaar e-signatures.
Our clients have shortened the time it takes to execute a contract from a few weeks to less than 10 minutes, thanks to our e-signature workflow and document management technology. Signers quickly eSign PDF files using online eSign services and templates, and our smart management software keeps track of all the papers your business produces.
We offer PAN-based, DSC and Aadhaar eSign signatures — Aadhaar eSign being the safest, most secure and most popular. Our portal allows businesses to create, eSign, and handle all of their business papers, with a free account on the eSign workflow platform to get started.