Understanding the importance of a Digital Signature Certificate (DSC) can significantly improve how one handles documents and transactions in the Digital Age
With AI swiftly taking over business communications and technology being used at its peak; the protection of e-documents is of utmost importance. A Digital Signature Certificate (DSC) acts as a digital ID card, verifying your identity online. It generates a unique electronic signature for documents, similar to a handwritten signature, but offers enhanced security. It contains details like the signer's name, validity, and issuing Certifying Authority's (CA) name. It uses encryption to prevent forgery, ensuring safer online communications.
Earlier, the DSCs could be generated just by providing ID cards and filling up a form and the DSC could even be shared online, however, this led to a lot of fake generation and misuse of the DSCs. To curb such malpractices, the DSC is now generated in a physical token like a USB, allowing only its holder to use it. Moreover, one cannot proceed to make a DSC without doing a video verification from their registered mobile number and providing OTPs received on their mobile no. and email ID, making it difficult for anyone to make a duplicate DSC or forge its application. The token has to be issued by a CA like ePass2003 or Proxkey licensed by the Controller of Certifying Authorities (CCA) and can be obtained through any service provider who can assist in the DSC generation.
There Are Multiple Types Of DSCS:
Individual (Sign only)
It is issued to individual users and is primarily used for personal identification, enabling users to sign documents, emails, tax returns and file the forms on government portals like MCA (Ministry of Corporate Affairs). Validity: 1-3 years
Encrypted (Sign with encryption)
Encrypted signing is a way to secure a digital signature so that the signed document stays private and safe from tampering. It is mainly used on e-procurement portals, E-tenders, Ice-gate, and Bidding websites. This DSC is mainly used by contractors, vendors, and bidders. Validity: 1-3 years
Organisation DSC
It allows organizations to sign official documents and contracts digitally, ensuring that what they sign is genuine and hasn't been altered. For eg. To register a Start-up with the DPIIT, an Organization DSC is required. Validity: 1-3 years
DGFT Digital Signature Certificate
This is for businesses that have an Import-Export Code (IEC). It can only be used on the DGFT website. It helps businesses follow legal requirements and save costs. Validity: 1-3 years Hence, DSCs are widely used in various areas like E-Governance, Banking and Finance, Legal Documentation and E-tendering
DSCs provide a high level of security, ensuring that documents are not tampered with after signing. They confirm the identity of the signer, reducing the risk of fraud. Electronic signing speeds up the process of document handling, making transactions faster and more efficient. It reduces the need for paper, contributing to environmental conservation. However, there are certain disadvantages of a DSC like users need a basic understanding of how to use digital signatures, which can be a barrier for some. If systems fail or are hacked, access to digital signatures could be compromised. Also, in some jurisdictions, the legal status of digital signatures may not be fully recognized.
With all its advantages and disadvantages, DSC is mandatory for certain compliances and protection of e-files and hence, one cannot do without it. Since a DSC confirms the approval of its owner, every business person must be aware of the generation and application aspects of it. Understanding and utilizing DSCs can significantly improve how one handles documents and transactions in the digital age.