Clipped from: https://www.financialexpress.com/life/technology/protect-your-e-documents-from-online-frauds-with-digital-signature/4224738/
Valid for ITRs, e-tenders, rental agreements & job contracts
Lock Your Documents: How Digital Signatures Prevent Online Fraud
As cases of online fraud rise, a digital signature can act as a tamper-proof seal on any document sent online by ensuring authenticity, data integrity, and accountability.
Each digital signature or e-sign is linked to a unique cryptographic key, creating a secure audit trail that can be independently verified. This makes it difficult for criminals to impersonate or tamper with e-documents. “Built on encryption frameworks defined under the Information Technology Act, 2000, it is created using a unique private key that only the sender has access to, and it is verified by a corresponding public key,” says Adhil Shetty, chief executive officer, Bankbazaar. “This creates a secure, tamper-evident link between the signer and the document, making it reliable for both authentication and transaction validation.”
How to get a digital signature
An individual can get a Digital Signature Certificate (DSC) from a licensed Certifying Authority regulated by the Controller of Certifying Authorities (CCA). There are around 23 CAs including e-Mudhra, Protean, CDSL Ventures and CSC.
The individual will have to submit PAN, Aadhaar, and KYC details and complete the verification process (video or physical). The DSC certificate is valid for one to three years and costs between `1,000 and `3,000 depending on the class and validity.
The signature is stored securely on a hardware device like a USB token, ensuring only that person can use it.
Use in bank transactions
In corporate internet banking, companies upload NEFT/RTGS files for bulk payments. These files are digitally signed using a DSC or hardware token. Even if the file is intercepted, it cannot be modified or re-used without invalidating the signature. Also some companies can use cheques with pre-printed signatures for bulk payments. This is a special, controlled printing arrangement that is explicitly approved by the company’s bank and backed by strict internal controls and indemnities.
However, retail banking (UPI, debit cards, net banking) relies on OTPs and PINs rather than digital signatures. Traditional cheques are governed by the Negotiable Instruments Act, 1881 and require physical signatures (wet ink signature).
Common usage
Digital signatures can be used for filing income tax returns, making submissions to the ministry of corporate affairs or participating in e-tenders, for personal legal documents like rental agreements and employment contracts. E-signs are best suited for documents that are created, processed, and stored entirely in electronic form, ensuring speed, security, and legal validity.
However, they are not accepted in case of Wills, certain property documents like sale deed, gift deed requiring registration and physical signatures, power of attorney, trust deeds, etc. Vishnu Chundi, founder and chief executive officer, AasaanWill, says courts rely on human testimony and physical verification, not just cryptographic proof. “This is why digital signatures, despite their security, are not sufficient for testamentary documents,” he says.
In case of misuse
If a digital signature has been misused, it is crucial to have it suspended or revoked immediately, and follow it up with a formal complaint with the cybercrime police.
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