Friday, July 18, 2014

FAQs about digital signatures

Posted by Mohan Mahtha  |  No comments

What is a digital signature?
First, it is not the scanned form of your paper signature as some might think. It is an electronically generated stamp of authentication. It is a set of encrypted data used with the same validity of a paper signature, but on emails, electronic documents and online transactions. Your digital signature is unique to you. A receiver can verify if the message came only from you and that it had not been tampered with.
Do I need one?
For now, it is quite a helpful tool but before long, it may become absolutely essential. With a digital signature, you can file tax returns online, make investments, do your banking transactions and even send quotations to your business partners. India is moving into a system where an increasing number of electronic transactions will go under the mandatory e-filing system requiring a digital signature. The private sector, too, is embracing this. One day, you may be required to digitally sign your job application.
How do I get it?
You must apply to one of the country's seven certifying authorites (CA) licensed by the government. A CA not only issues the digital certificate to you, but also certifies all your online transactions to establish an unbroken path of virtual trust.
Is it widely accepted?
Indian laws recognise digital signatures at par with paper signatures. A growing community of large and small companies, financial service providers and government agencies are not just accepting them, but insisting that their customers use digital signatures.
Is it reliable?
It is practically safe and certainly more so than paper records. The certifying authority verifies your identity for each transaction and the software used at the receiver's end eliminates chances of tampering en route. An elaborate system of checks and balances also ensures that a sender is not able to disown his or her message later.
Is it affordable?
At Rs 2,000 or more per signature, it often isn't, especially for young professionals. But with increasing volumes, prices are coming down and the government also plans to encourage more competition in the sector.
I am not tech-savvy. Isn't paper and phone the better way?
You don't have to be a rocket scientist to use digital signature. You won't see or feel most of the processes that happen in the back-end. If you have the basic comfort level with a personal computer and can click on the button shown on the screen, you're OK. This system also does away with many shortcomings of the paper and phone world. Read More..
http://articles.economictimes.indiatimes.com/2007-08-11/news/27690048_1_digital-signature-digital-certificate-online-transactions

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