India Electronic Signature Compliance Explanation

Are electronic signatures legal in India? What laws primarily regulate electronic signatures?

Electronic signatures are legal in India, and Indian electronic signatures are primarily regulated by the Information Technology Act, 2000 (“ITA”), the Information Technology (Certifying Authorities) Rules, 2000, the Information Technology (Use of Electronic Records and Digital Signatures) Rules, 2004, and the Electronic Signature or Electronic Authentication Technique and Procedure Rules, 2015 (“ESEATPR”).

What is an Indian electronic signature? What are its validity requirements?

The ITA defines an electronic signature as “the authentication of any electronic record by a subscriber by electronic technique as specified in Schedule 2, including a digital signature.”

The ITA defines a “digital signature” as “authentication of any electronic record by a subscriber by electronic method or procedure in accordance with the provisions of Section 3 of the [ITA].”

What types of electronic signatures are recognized in India? What are the requirements for each?

India recognizes two types of electronic signatures, namely electronic signatures and certificate-based digital signatures.

1. Electronic Signatures

   A valid electronic signature must include electronic authentication techniques or procedures as specified in Schedule 2 of the IT Act.

   Schedule 2 currently specifies the following e-KYC authentication techniques and procedures:

   • Aadhaar e-KYC;
   • Other e-KYC services (e.g., e-KYC using Permanent Account Number (PAN)).

   Authentication using Aadhaar e-KYC services is currently provided to private application service providers by only two government entities:

   • Protean eGov Technologies Limited (formerly National Securities Depository Limited); and
   • Centre for Development of Advanced Computing (C-DAC).

2. Certificate-Based Digital Signatures

   Under the IT Act, a digital signature is considered reliable and presumed to be valid if:

   In addition to meeting the requirements of an electronic signature, it should also:

   • Be unique to the signatory;
   • At the time of signing, the signatory must have control over the data used to generate the electronic signature;
   • Any changes to the affixed electronic signature or the document to which the signature is affixed must be detectable;
   • There should be an audit trail of the steps taken during the signing process; and
   • The signatory’s certificate must be issued by a Certification Authority (CA) recognized by the Controller of Certifying Authorities.

   eSginGlobal’s signatures provided through integration with local trusted service providers meet India’s requirements for certificate-based digital signatures

In what scenarios is a digital signature required in India?

Digital signatures are required in the following scenarios, among others:

• Loan documents in digital lending services
• Insurance policies

In what scenarios is a traditional signature required in India?

Traditional signatures are required in the following scenarios:

• Negotiable instruments including promissory notes, bills of exchange (Section 13 of the Negotiable Instruments Act, 1881)
• Powers of attorney, except for powers of attorney authorizing a government-regulated entity to act on behalf of the person executing the power of attorney (Section 1-A of the Powers of Attorney Act, 1882)
• Trusts (Section 3 of the Indian Trusts Act, 1882)
• Wills, including any other testamentary dispositions (Section 2(h) of the Indian Succession Act, 1925)
• Notarial documents