DIFFERENCE BETWEEN ELECTRONICALLY SIGNED & DIGITALLY SIGNED

Businesses today rely heavily on digital documents—but the way those documents are signed often creates confusion. Terms like electronically signed and digitally signed are frequently used interchangeably, even though they are not the same.
While both electronic signatures and digital signatures allow you to sign documents online, they differ in how they work, the level of security they offer, and where they are legally accepted.
Here is the difference between electronically signed and digitally signed documents. This will help you choose the right document signing solution for your business needs.
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Multiple Document Signing Solutions

As the world moves away from paperwork, multiple digital solutions are now available to sign documents online. Paperless signature solutions are designed to replace manual signing while improving speed, accuracy, and security.
Depending on the type of document and level of compliance required, one can choose from different document signing methods. Some solutions are ideal for quick approvals and internal use, while others are mandatory for regulatory filings and legally sensitive transactions.
The most commonly used document signing solutions include:
- Digital Signature Certificate (DSC).
- eSign (Aadhaar-based electronic signing),
- Electronic Signatures,
Each method serves a different purpose for electronic document management. So, you must know the difference among all these before you electronically sign documents.

What Is a Digital Signature?

A Digital Signature Certificate (DSC) is a highly secure form of electronic signing that uses cryptographic technology to authenticate the signer and protect the document from tampering. It is issued by a licensed Certifying Authority.
When a document is digitally signed, the signer's identity is verified, and the document is encrypted. Any change made after signing invalidates the signature, making digital signatures ideal for compliance-driven and legally critical documents.
In India, digital signatures are legally recognized under the Information Technology Act, 2000. These are widely used for government filings such as MCA, GST, Income Tax, EPFO, and e-tendering.

What Is eSign?

eSign is a type of electronic signature that allows users to electronically sign documents online using Aadhaar-based authentication.
Once authenticated, the document is signed digitally through a licensed eSign service provider like esign.network.
This makes eSign a paperless signature, instant, and legally valid signing method for individuals and businesses that need fast approvals. It also eliminates the need to manage a DSC token to electronically sign documents.

What Is an Electronic Signature?

An electronic signature is a broad term that refers to any electronic method used to sign a document. This can include click-to-sign, OTP-based signing, scanned signature images, etc.
Electronic signatures are widely used for everyday business documents such as contracts, internal approvals, vendor agreements, and customer consent forms. They are easy to implement and allow organizations to electronically sign documents within minutes.
While electronic signatures are legally valid in many cases, the level of security and acceptance depends.

Key Differences Between Electronic Signature and Digital Signature

Electronic Signature

1. Broad term covering multiple online signing methods
2. Uses simple electronic methods like click-to-sign, OTP, or image-based signatures.
3. Focuses on speed and convenience. Security level is lower.
4. Limited protection against document changes after signing.
5. Lower setup cost and easy to use
6. Suitable for everyday, normal approvals or documents. Commonly used for agreements, approvals, and consent forms

Digital Signature

1. Specific type of electronic signing using cryptographic technology
2. Uses encryption and Public Key Infrastructure (PKI).
3. Provides high-level security and identity authentication
4. Detects any change made to the document after signing
5. Digital Signature cost depends on validity, type, etc.
6. Mandatory for many government and regulatory filings. Used for MCA, GST, Income Tax, EPFO, and e-tendering

How to Choose the Right Signing Method for Your Business?

Consider the following points:
1. Type of Document
Use electronic signatures for routine agreements and internal documents.
Use digital signatures for statutory, legal, or government-related filings.
2. Legal & Regulatory Requirement
If a regulator or government portal mandates a Digital Signature Certificate (DSC), a digital signature is compulsory.
3. Level of Security Needed
For low to medium risk documents, electronic signatures are sufficient.
For high-value or sensitive documents, digital signatures provide stronger protection.
4. Speed & Convenience
Electronic signatures are faster and easier.
Digital signatures require setup but offer higher assurance.
5. Business Size & Volume
Enterprises and compliance-driven businesses rely more on digital signatures to electronically sign documents.

Final Words

Electronic signatures and digital signatures both play an important role in today's digital-first business environment, but they are designed for different purposes.
Understanding the difference between electronically signed and digitally signed documents helps businesses avoid confusion, prevent compliance issues, and choose the right signing method for each situation. Instead of asking which option is better, the real question should be which option is right for your document.
By selecting the appropriate signing solution, one can streamline workflows, do electronic document management, stay compliant, and move toward a truly paperless process.

FAQs

1. Are electronically and digitally signed documents the same?
No, Electronic signing is a broad term that includes various online signing methods such as click-to-sign, OTP-based signing, and eSign.
Digital signing using a Digital Signature Certificate (DSC) is a specific type of signing that provides a higher level of security and legal compliance.
2. What does digitally signed mean?
A document has been signed using a Digital Signature Certificate issued by a licensed authority. It verifies the signer's identity and ensures the document has not been altered after signing.
3. Is Aadhaar a digital signature?
No. Aadhaar itself is not a digital signature. Aadhaar-based eSign is an electronic signature method that uses Aadhaar authentication to sign documents.
4. Can I use an e-signature on my phone?
Yes. Most e-signature and eSign platforms allow you to sign documents using your mobile phone through OTP or Aadhaar-based authentication.
5. Are electronically signed documents legally valid in India?
Yes. Electronically signed documents are legally valid in India under the Information Technology Act, 2000, provided they meet the required authentication and consent standards.