4.7 eSign, eStamp, document automation

What this stack does

• eSign: legally valid digital signature (Aadhaar eSign, DSC, electronic signature) for loan agreement, KFS acknowledgement, DPN, PG, mandates.
• eStamp: digital stamp paper / state-electronic stamping (replaces physical stamp paper) for instruments that need stamping.
• Document orchestration: templates, generation, multi-signer flow, archival.

Legal basis

• Information Technology Act, 2000 — eSign is a legally valid digital signature.
• Aadhaar eSign — OTP-based or biometric, per UIDAI specifications.
• Indian Stamp Act, 1899 and state stamp laws — stamp duty applicable; eStamp accepted where notified.
• NACH / eNACH — NPCI procedural rules.

Vendors

Vendor	Strengths	URL
Leegality	Document orchestration leader; multi-signer flows; templates; eStamp coverage	leegality.com
Digio	eSign + eStamp + eNACH; strong API surface; popular with NBFCs	digio.in
SignDesk	eSign + eStamp + workflow; established	signdesk.com
NSDL e-Gov	eSign authority (technical infrastructure)	nsdl.co.in
SHCIL (Stock Holding Corporation)	e-stamp paper backbone	shcilestamp.com

eSign flow (Aadhaar OTP)

1. Document hashed.
2. Borrower’s Aadhaar number entered (or already collected).
3. Borrower receives OTP from UIDAI (via vendor).
4. Borrower enters OTP.
5. Vendor calls Aadhaar eSign API; UIDAI signs the hash with borrower’s Aadhaar-linked digital certificate.
6. Signed document returned.
7. Audit trail (IP, device, OTP transaction reference) attached.

eStamp flow

• States with eStamp: most large states (Maharashtra, Gujarat, Karnataka, Tamil Nadu, Delhi, UP, etc.) have notified eStamp providers (SHCIL, vendor partners).
• Process: select state → compute stamp duty per agreement type → vendor issues eStamp certificate with unique ID → printed on document or attached as PDF.
• Some states still require physical stamp paper for certain instruments.

Multi-signer flows

For company / partnership borrowers:

• Sequential — one signer at a time; each gets a notification, signs, then next.
• Parallel — multiple signers can sign simultaneously.
• With witness — where required.

Orchestration handled by vendor (Leegality is strong here).

NACH / eNACH mandates

Separate but closely related. eNACH is a digital NACH mandate signed by Aadhaar / debit card / netbanking.

• Aadhaar-based eNACH: borrower authorises via Aadhaar OTP; cleanest UX.
• Debit-card-based eNACH: borrower swipes mock transaction; mandate created.
• Netbanking-based eNACH: borrower logs in; authorises.

Vendor: Digio DigiCollect, Razorpay, Cashfree, NPCI direct, Karza, Setu.

Pricing proxy

• eSign per signature: ₹5 – ₹30.
• eStamp per stamp certificate: state-duty (pass-through) + vendor fee ₹10 – ₹50.
• eNACH per mandate: ₹15 – ₹50.
• Document template engine: usually included with vendor.

Implementation complexity

• Leegality / Digio integration: ~2 – 4 weeks for basic flow; multi-signer / multi-language / co-lending addendum adds time.

Failure cases

• Aadhaar OTP failure: alternate vendor / alternate eSign method.
• eStamp paper unavailable: vendor failover.
• Multi-signer dropout: one signer fails; vendor reissues, others may need re-do.
• State eStamp restrictions: some instruments still require physical stamp.

Fallback

• Physical signing if eSign fails repeatedly.
• Alternate eSign vendor.
• Manual eStamp at sub-registrar office.

Compliance implications

• IT Act, 2000 — eSign legal validity.
• State stamp Acts — eStamp acceptance varies.
• NPCI procedural rules — eNACH.
• Digital Lending Guidelines — KFS acknowledgement required pre-disbursement; covered by eSign on KFS or explicit checkbox + log.
• DPDP — Aadhaar handling per UIDAI rules + DPDP.

Build vs buy

• eSign: Buy. UIDAI eSign requires authorised partners.
• eStamp: Buy (SHCIL or partner vendor).
• Document template engine: Hybrid — use vendor’s templates for simple, build platform’s own templates for complex multi-lender / multi-language.
• DMS / archival: Build (your storage strategy, your retention).