DSC (Digital Signature Certificate) token, or simply DSC, is a pen drive shaped device that can be used to securely sign an electronic document.
To obtain a DSC token, the signer needs to apply to a Certifying Authority (CA) where she will have to submit KYC documents and undergo a video eKYC process. After authenticating the identity of the signer and upon receipt of the requisite fees, the CA will courier the DSC token in a few days. The signer then has to insert the DSC token into a computer, and wait for a driver software to install before proceeding to eSign any document.
Each DSC comes with a PIN, which is the password required to eSign a document with a DSC token. The PIN is known only to the signer in whose name the DSC has been issued.
The major drawbacks of using a DSC Token include:
It is too expensive for the average Indian
DSC Tokens are very hard to use and they often stop working
DSC Tokens take time and effort to procure
DSC Tokens cannot be used on mobile devices
DSC Tokens always require physical possession of the pen drive for the sign to be affixed
Legal Validity
Section 2(p) defines a digital signature, while Section 2(1)(ta) categorizes digital signatures - as a subset of electronic signatures.
Section 3 stipulates the technical requirements for an electronic signature to be classified as a digital signature - namely the involvement of an asymmetric cryptographic system along with hashing functions and a system of “authenticated certificates” known as Electronic Signature Certificates. DSC Tokens are form of deploying these technical requirements - via a USB pen drive device.
Section 5 of the IT Act grants electronic signatures identical validity to wet-ink signatures, i.e., an “electronic signature” like DSC is seen as legally identical to a wet-ink physical signature - even if its form and design may be different.
Digital signatures like DSC can therefore be used to legally sign all types of documents.
The only exception to this rule is that it cannot be used to eSign documents listed in the First Schedule of the IT Act, 2000.
Here is a handy table which tells you where can you legally use DSCs:
The legal enforceability of any eSign type depends on:
How well it can establish the identity of the signer (Authentication)
Whether the document can be altered after the signatures are affixed (Integrity)
Whether the parties can deny their acceptance of the terms and conditions at a later stage (Non-repudiation)
DSC is very easy to enforce because it performs these 3 functions very well.
eSign type \ Goal
Authentication
Integrity
Non-repudiation
DSC token
The secure key pair encryption/decryption process helps to clearly establish the signer’s identity, details of which are contained in the electronic signature certificate
The underlying technology (asymmetric crypto system + hash matching process) ensures that anyone opening the document on a PDF reader is alerted if the document has been altered after the signatures were affixed.
For the signer to deny their DSC digital signature - they would need to prove that someone else got access to their unique PIN. This is extremely unlikely.
eSign type \ Goal
DSC token
Authentication
The secure key pair encryption/decryption process helps to clearly establish the signer’s identity, details of which are contained in the electronic signature certificate
Integrity
The underlying technology (asymmetric crypto system + hash matching process) ensures that anyone opening the document on a PDF reader is alerted if the document has been altered after the signatures were affixed.
Non-repudiation
For the signer to deny their DSC digital signature - they would need to prove that someone else got access to their unique PIN. This is extremely unlikely.
In addition to the underlying technology, there are certain legal presumptions in favour of DSC tokens which make enforcement even easier:
Section 67A - if a signer uses DSC to execute a document then it will be presumed that such eSign belonged to the signer herself and not to any other person. The signer cannot later on refute her eSign on the document.
Section 85A - an agreement which has been executed using DSC will be presumed to have been concluded between the parties and attained finality. This lends certainty as to the finality of the terms and conditions agreed between parties to the agreement.
Section 85B(1) - it is legally presumed that the document has not been altered once it has been signed using DSC
Section 85B(2) - if the signer signs a document using DSC, it is presumed that the signer signed it with the intention of signing or approving the document
Section 85C - it is presumed that the details mentioned in the Electronic Signature Certificate affixed on the document, such as name of the signer, email ID and time of signing is true. This helps in establishing the identity of the person who signed the document.
Digital signatures like DSC can therefore be used to legally sign all types of documents. The only exception to this rule is that it cannot be used to eSign documents listed in the First Schedule of the IT Act, 2000.
Contrary to popular belief, e-signatures have been legally valid in India for over 18 years now: the Information Technology Act (IT Act), passed in 2000, granted e-signatures the same legal status as handwritten signatures.
Electronic contracts are as legal and enforceable as traditional paper-and-ink contracts. Electronic contracts provide valid and convenient solutions for businesses—you can sign them anytime and anywhere.
Similarly, for an e-signature to be legally binding, all parties involved must agree to conduct business electronically. For example, asking signers to “click to accept” a standard consent clause could demonstrate consent.
From the Signature Details dialog box, you can determine if the signature is: Valid The signature is current. The certificate is trusted, and isn't expired or revoked. Invalid The certificate is revoked or the content signed has been altered.
If a digital signature isn't valid, there can be many causes. For example, the sender's certificate may have expired, it may have been revoked by the certificate authority (CA), or the server that verifies the certificate might be unavailable. Notify the message sender of the problem.
Digital signatures are also used to provide proof of authenticity, data integrity and nonrepudiation of communications and transactions conducted over the internet.
The renewal process is similar to obtaining a new DSC in a new USB token. You'll need to submit all documentation and verifications again. A new certificate will be issued that can be downloaded to your existing USB token. After downloading, your DSC will start working again.
Does an electronic signature hold up in court? Electronic signatures hold up in court since they are legal signatures. The Electronic Signatures in Global and National Commerce Act, otherwise known as the E-Sign Act, states that electronic signatures shouldn't be considered invalid simply because they're electronic.
Consent - When an electronic document or contract is signed, every party signing it must specifically consent to allow an electronic signature. Without this, the use of electronic signatures cannot be considered valid unless the signer opted in at a previous date and never withdrew their consent.
Electronic signatures are not permitted to be used in executing wills or codicils, contracts relating to the alienation of immovable property, bills of exchange such as cheques, and long-term agreements for immovable property, which are in excess of ten years.
Whether through a federal act or a state-level act, electronic signatures are generally valid in all states. The rule has some exceptions, such as the signed document type.
Why You Need a Business Contract Lawyer. If you're asking whether you need a lawyer to draft a contract, legally, the answer is no. Anyone can draft a contract on their own and as long as the elements above are included and both parties are legally competent and consent to the agreement, it is generally lawful.
However, the certificate of electronic signature is only valid for 3 years. So technically an attempt to validate the signatures after those 3 years can be somewhat troublesome. The undeniable (or so called non–repudiable) fact is that the signature was valid at a previous point in time. So how to prove it?
Digital Signature ensures that no tampering of data is done once the document has been digitally signed. A DSC is normally valid for 1 or 2 years, after which renewal is required.
A common question people have is “Can my digital signature be forged, misused or copied?” The reality is, wet signatures can easily be forged and tampered with. An electronic signature has many layers of security and authentication built in, along with court-admissible proof of transaction.
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