With digitization catching up in the Covid phase, businesses have shifted to remote work setups, and have started adopting eSignatures, as one can now provide signatures and keep the business moving with the help of these e-signatures.
Aadhaar based eSign has gained lot of prominence and here is an insight on why Aadhaar based esign is here to stay
Aadhaar eSigns are recognized as an accepted method of secure electronic signatures as part of the Second Schedule of the Information Technology Act, 2010 (IT Act) The IT Act recognizes secure digital signatures such as Aadhaar eSign as having legal validity equivalent to that of physical signatures. The RBI has encouraged and extended it’s support. RBI had released a notification to Financial body in India- RBI/2019-20/172 – COVID-19
In which, RBI has encouraged the use of digital channels for business transactions.
Aadhaar eSigns are a more legally and technologically secured way of signing documents than other alternative techniques.
The Aadhar based e-sign was introduced to prevent the problems that occurred due to digital signatures. It kept full stop for all the questions of digital signatures. It is safe and secure with four layers which are as follows:
- The first layer or motive of the Aadhar eSign is about giving the consent of the individual by accepting and signing the required documents.
- The Aadhar signature follows a two-way authentication process which is based on the Aadhar number and one-time password. The Aadhar based design is more effective and secure when compared to the one-time password e-sign.
- The Aadhar based design allows individuals to go paperless work for all activities. It looks on soft copies and these soft copies may travel to different third parties to get consent.
- According to the information technology act 2015, the e-signatures are valid for several commercial and residential agreements. Because it is very beneficial and reduces several complications that may erase during the time of producing legal documents. The biometric process is also utilized by this Aadhar e signature.
Documents that can be accepted by the Aadhar e signature are –
- According to section 13 of the negotiable instrument act, 1881, the legal documents are valid with Aadhar signature.
- Also, another act called, Power of attorney particularly section 1A.
- In section 3 of the Indian Trust Act in 1882 also eligible for the Aadhar based design.
- And clause H of section 2 of the Indian Succession Act, 1925, including any other testamentary considers the Aadhar e-signature for disposition of name of a contract.
- The contracts and transactions which come to the notice of the central government and are assisted by the Gazette.
The e-signature made by Aadhar is safe, secure, and reliable. Also, the data available in the contracts which undergo transactions with the e-signatures are protected. It takes several protective steps for the user’s data.
- The KYC services are also updated as eKYC services. They maintain biometric verification, one-time password, digital contract validity for 30 minutes, etc will be used as factors for successful authentication of agreement.
- A private key pair is provided and it is valid only for one transaction. It can be deleted or automatically deactivated after the transaction was completed.
- ASP level login provision and replacement of resistor mobile number for every individual if the whole family has resistor under a single mobile number. This protects the data and provides security to the agreement.
- It considers the 12 digit Aadhar number itself used as a one-time password and it is linked to the PIN which acts as a gateway PIN authentication process.
Aadhar eSign adds more veracity and credibility to the process and is reliable, accessible, and secured.
If you want to accelerate the signing process with our Aadhaar integrated product, ZoopSign you can connect with us and talk to our experts who can help you to reduce your manual process and make the onboarding process of your clients simpler.
Source: – http://cca.gov.in/sites/files/pdf/esign/eSignService_OnlineDigitalSignatureService_Blue27.02.2015.pdf
