How are eSign services & eStamping 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 mostly on human connection; most of this industry’s work was done manually. 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 savior for other sectors who were facing an economic downturn. Two concepts that are now widely used are esign services or digital signature services and estamping services. Along with E Signature services, in order to eliminate the hassling stamp procurement process, estamp registration process was brought into the picture.
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 digitally revolutionized esign and estamp solutions are the primeval act of easing the contract signing or digital contract process. The estamping system is designed in compliance with the new e-governance mandates.
EStamping services aren’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 absolutely 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 is used 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. 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 digitally 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 is deemed to have maintained its integrity.
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, esign services are significantly used that eventually helps 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. These digital stamping solutions are validated using a digital estamp certificate which is proof of its 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 centers in India from respective state governments produce these estamps, and currently, more than 10 states in India have it 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 estamp 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 each and every step. We are often unknowingly taking part in digital contracts which involves 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 increase in disruptive technologies like Artificial Intelligence and Machine Learning, these electronic business modules can be made smarter to be able to predict and detect fraud. eSign and e-Contracts can also help in taking the necessary steps after detecting suspicious activities. The estamp services available have been developed with varied innovations in technology that can ease the present irksome processes. We can see that many people buy estamp paper digitally. 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.