The Rise of Electronic Signatures in Bangladesh: A Legal and Technological Perspective
An electronic signature (e-signature) is a digital form of signing a document, which indicates the signer’s intent to agree to the contents of the document. It can take various forms, including a scanned image of a handwritten signature, a unique PIN, or a biometric identifier like a fingerprint. E-signatures provide a secure and efficient way to sign documents electronically, ensuring the authenticity and integrity of the signed document. SELISE Signature’s top-notch security features like encryption and firewalling complemented by two-factor authentication and a holistic audit trail starting with the user’s first login, ensure that all e-signatures created using the software are secure, verifiable, and compliant with legal standards.
In recent years, Bangladesh has made significant strides in embracing digital transformation, with e-signatures being a pivotal component of this shift. The adoption of e-signatures is slowly transforming how businesses operate and how legal transactions are conducted. E-signatures are revolutionizing business operations by offering a more efficient, protected, and convenient way to manage documents.
E-signatures in Bangladesh
The journey towards widespread use of e-signatures in Bangladesh is facilitated by rapid growth of internet and mobile penetration. According to the Bangladesh Telecommunication Regulatory Commission (BTRC), the country has over 131 million internet users. This digital infrastructure lays a solid foundation for the adoption of e-signatures.
Various sectors in Bangladesh are slowly integrating e-signatures into their operations. This integration enhances customer convenience, reduces processing times, and cuts operational costs.
Moreover, the integration of emerging technologies such as blockchain and artificial intelligence (AI) will further enhance the security and efficiency of e-signatures. Blockchain, for instance, can provide an unchangeable ledger of signed documents, ensuring their integrity and authenticity. AI is used to automate the verification and validation processes, making e-signatures even more seamless and user-friendly.
Bangladesh made significant progress by introducing the Information & Communication Technology Act (ICT Act) in 2006, establishing a solid legal foundation for electronic signatures and digital transactions. By following set standards and guidelines, businesses can confidently use electronic signatures, reduce legal risks, and ensure compliance with regulations. Any electronic signature will be deemed invalid if the related electronic record is tampered with or altered.
According to the Act, e-signatures must meet the following criteria:
• Identify the signatory.
• Be uniquely affixed to the signatory.
• Be created in a secure manner or using means exclusively controlled by the
signatory.
• Be associated with the attached data in a way that any subsequent alterations
to the data can be detected.
Looking ahead, the future of e-signatures in Bangladesh appears promising. The
government’s continued commitment to digital transformation, coupled with
advancements in technology, is likely to drive its adoption further.
Benefits
1. Increased Efficiency and Productivity
Faster Processing: E-signatures significantly reduce the time required to sign and process documents. Transactions that generally take days or weeks can be completed in minutes.
Automated Workflows: E-signature platforms often include workflow automation features, which streamline document routing and approval processes, saving time and effort.
2. Cost Savings
Reduced Paper and Printing Costs: By eliminating the need for physical documents, organizations can save on paper, ink, and printing costs. Lower Shipping and Storage Costs: E-signatures eliminate the need for mailing documents and storing physical records, leading to substantial savings on postage and storage.
3. Improved Security and Compliance
Enhanced Authentication: E-signatures often incorporate two-factor authentication and digital certificates to verify the identity of signatories, reducing the risk of fraud.
Tamper-Evident: Documents signed electronically are often encrypted and include tamper-evident features, ensuring the integrity of the signed document.
Regulatory Compliance: E-signatures can help organizations comply with various legal and regulatory requirements by providing a clear audit trail and ensuring the authenticity and integrity of documents.
4. Environmental Benefits
Reduced Paper Usage: By going digital, organizations can significantly reduce their paper consumption, contributing to environmental sustainability.
Lower Carbon Footprint: E-signatures reduce the need for physical document transportation, thereby lowering the carbon footprint associated with mailing and courier services.
5. Convenience and Accessibility
Remote Signing: E-signatures allow documents to be signed from anywhere, at any time, using any device with internet access. This is particularly beneficial in the era of remote work and global business operations.
6. Legal Validity and Enforceability
Recognized by Law: In many jurisdictions, e-signatures have the same legal standing as traditional handwritten signatures, making them valid and enforceable in court.
Audit Trails: E-signature platforms provide detailed audit trails that record each step of the signing process, offering legal proof of the transaction.
The benefits of using e-signatures are substantial, making them an attractive option for organizations looking to improve efficiency, reduce costs, enhance security, and overall better customer experiences. As digital transformation continues to advance in the country, the adoption of e-signatures is likely to become even more widespread, driving further innovation and growth across the country