Are electronic signatures legal in India?

What the IT Act says

• Contracts. A contract can't be deemed unenforceable just because it was formed by electronic means (s. 10A).
• Writing. Where a law requires a document in writing, an electronic record that's accessible for later reference satisfies it (s. 4).
• Signatures. Where a law requires a signature, an electronic signature affixed in the prescribed manner satisfies it (s. 5).

The catch is the definition. Under section 2(1)(ta), an electronic signature means authentication by a technique listed in the Act's Second Schedule, which includes digital signatures. The Second Schedule now covers e-KYC based eSign, including Aadhaar eSign (added in 2015 and widened in 2019), and remote key storage with a trusted third party (2020). A click or a typed name isn't one of those techniques. Our reading, which a lawyer should confirm for your case, is that such a signature can still evidence a contract under section 10A, but it doesn't carry the statutory status of an IT Act electronic signature.

What a court presumes

The Bharatiya Sakshya Adhiniyam, 2023, India's new evidence law, presumes that an electronic agreement bearing the parties' electronic or digital signatures was concluded that way (s. 85), and adds stronger presumptions for secure electronic records and signatures (s. 86). Except for a secure electronic signature, a party relying on a signature has to prove it belongs to the person who supposedly signed (s. 66). A clear record of who signed, from where and when is what carries that burden.

What the First Schedule excludes

Section 1(4) and the First Schedule keep these documents outside the Act, as amended by notification S.O. 4720(E) of September 26, 2022:

• Negotiable instruments other than cheques, except demand promissory notes and bills of exchange issued to or endorsed by an entity regulated by the RBI, NHB, SEBI, IRDAI or PFRDA.
• Powers of attorney, except those empowering such a regulated entity to act for the person executing them.
• Trusts.
• Wills and other testamentary dispositions.

The same 2022 notification deleted the former item 5, contracts for the sale or conveyance of immovable property. Other laws on stamping and registration still decide how a property document is executed and registered.

Certifying authorities that issue digital signature certificates and run eSign services are licensed and supervised by the Controller of Certifying Authorities under the Ministry of Electronics and Information Technology (s. 17). The Act's preamble ties it to the UNCITRAL Model Law on Electronic Commerce.

Where SignMaster fits in India

SignMaster provides simple electronic signatures with an audit trail. It isn't a licensed certifying authority and doesn't offer Aadhaar eSign or digital signature certificates. It fits contracts that need no particular signature by law: service agreements, quotes, NDAs, vendor terms and freelance contracts. Each completed PDF ends with a certificate of completion recording every signer's email, IP address, consent and timestamps, with a SHA-256 fingerprint of each file.