How are e Sign services & eStamp becoming the Ultimate Business Tools?
The finance industry was both manual and monotonous until a few years back. However, the pandemic initiated the wave of digital transformation in the banking & financial industry. Brimming with people and relying on human connection; most of this industry’s work was completely done on a manual basis. This is why the social distancing norms proved to be a big blocker to this industry. This was one of those industries that evolved digitally to stay afloat and ahead of the curve, benefitting the most from this disruption. Being the driver of the economy, it was up to them to be the saviour for other sectors that were facing an economic downturn. Two concepts used on a wide basis are digital signature or e sign services and estamp solution. Along with E Signature services, estamp registration process eliminated the hassling efforts in the stamp procurement process.
Impact of COVID-19
Amongst various operations in the financial sectors that got digitized, the industry saw the addition of a few components as well. Electronic signature or digital signature and estamping being the two most prominent transformations. The revolutionary esign and estamp solutions are the primeval act of easing the contract signing or digital contract process. The estamping system is in compliance with the new e-governance mandates.
EStamp solution isn’t a new addition and neither are E Signature services or electronic signature solutions. They have long been in use even before the first industrial revolution. Thus, it is needless to say that digitization has revived the concepts of esign and estamp duty services again. With the number of identity and authenticity frauds increasing every day, it was imperative to develop a new system that facilitates digital contract or e-contract services. Likewise, digital signature solutions and estamp registration process received much attention.
Electronic Sign & its Necessity
E signatures or electronic signatures are the digital forms of traditional wet paper signatures. It helps in the identification, authentication, and verification phase of any transaction. Also known as digital signatures, E signature services are usually encrypted using encryption algorithms and hash functions. The digital signature process follows asymmetric encryption. The process starts with encrypting the contents of the documents with the sender’s private key. This produces a string of hash codes. This encoded message is then signed and sent to the concerned person. The receiver then uses the sender’s public key to decrypt the sender’s hash and also generates its own hash version of the message. If both the plain texts match then the document integrity not compromised.
This resulting code is unique and thus any discrepancies can be easily detected. This inter-level encryption makes it almost impossible to duplicate, change, or tamper with the document. Any attempt to duplicate or change the digital signature results in a discrepancy in the key. This makes signatures very secure and when used inside a digital contract, it makes the contract secured too. Mismatch in the signature violates the “Agreement” stage of the contract validation technique. Because of this inbuilt fraud protection method, e sign services are significantly used to build a strong suit in any agreement.
What are eStamps?
As an alternative to physical stamps, eStamping is a digitized way of paying non-judicial stamp duty to the government. Estamp services are a sustainable method as it eliminates the need for papers. It also is a much faster and easier method as it discards the otherwise hectic methods of standing in a queue for stamps. A digital stamp certificate helps to validate these digital stamping solutions which are proof of their authenticity. Though the consideration price remains the same, it is still a more efficient way. The Central Record Keeping Agency of the central government-authorized centres in India from respective state governments produce these estamps, and currently, more than 10 states in India have them in use.
Several e stamp service providers are contributing to the goal of transforming governance by introducing digital solutions. The institutions which require these services can easily buy e stamps. Even the procurement of non judicial e stamp paper has eased the process of e stamp purchase.
Looking forward to the Future
As the world is changing, we humans are getting more intertwined with technology. Starting from getting a cab in the morning, doing online shopping to signing a merger deal for the company, it is a contract in every step. We often unknowingly take part in digital contracts involving the use of digital signature and estamping services for completing the estamp registration process. Every time we use a service or offer a service, it forms the very invisible pillars of a contract.
With the emergence of disruptive technologies like Artificial Intelligence and ML, these electronic business modules can be smarter in predicting and detecting frauds. eSign and e-Contracts can also help in taking the necessary steps after detecting suspicious activities. The estamp services have varied innovations that can ease the present irksome processes. We can see that many people buy e stamp paper online. It is only a matter of time when we can see how these very small components like esign, estamping & e-contract, or electronic contract are bringing together the next digital revolution.