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DIGITAL SIGNATURE

A digital signature is a cryptographic method that ensures the authenticity, integrity, and non-repudiation of digital messages and documents. In India, the Information Technology Act, 2000 provides the legal framework for digital signatures, which are issued by Certifying Authorities and verified through public key infrastructure. Digital signatures offer benefits such as reliability, cost-effectiveness, and faster processing, but also face challenges like forgery, malware, and a lack of digital literacy.

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15 views4 pages

DIGITAL SIGNATURE

A digital signature is a cryptographic method that ensures the authenticity, integrity, and non-repudiation of digital messages and documents. In India, the Information Technology Act, 2000 provides the legal framework for digital signatures, which are issued by Certifying Authorities and verified through public key infrastructure. Digital signatures offer benefits such as reliability, cost-effectiveness, and faster processing, but also face challenges like forgery, malware, and a lack of digital literacy.

Uploaded by

advii.2705
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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DIGITAL SIGNATURE

A digital signature is a cryptographic technique used to validate the


authenticity and integrity of a digital message, document, or transaction.

It ensures that:

INTEGRITY
Indicate that the contents of a given message or document have original
integrity and have not been altered in transit.
AUTHENTICITY
Person who receives the message is able to realise who is the sender of the
message. It helps to verify the name of person signing the message digitally.
NON- REPUDIATION
The sender cannot deny that he had never sent the message.

Legal Framework for Digital Signatures in India


A. Information Technology Act, 2000

 Section 3 – Defines digital signatures using asymmetric


cryptography and hash functions to ensure authenticity of signed
document.
 Section 5 – any information that requires a signature under any law can
be signed electronically. A digital signature is considered valid if it
adheres to the conditions set forth in the IT Act.
 Section 10A – Validates e-contracts signed using digital signatures
provided they satisfy all contractual conditions.

🏢 Certifying Authorities (CAs)

 Responsible for issuing Digital Signature Certificates (DSCs).


 Examples in India: eMudhra, Sify, NSDL, Tata Consultancy Services
(TCS).
 The CAs ensure the authenticity and reliability of digital certificates
by adhering to the standards set by the Controller of Certifying
Authorities (CCA).

How it work?
Cryptographic Algorithms and Public Key Infrastructure

The process begins when an algorithm generates a hash from the


document’s content. This hashed data is then encrypted using public key
infrastructure (PKI).

PKI employs two distinct keys to authenticate: one public and one private.
The signer uses their private key to encrypt, or “sign”, the hashed data,
creating a digital signature that securely associates it with the corresponding
message or file.

o Private Key: Kept secret by the signer; used to create the


signature.
o Public Key: Shared with others; used to verify the signature.

.Verification Process

 Upon reaching its destination, the recipient software decrypts the


received encrypted hash using the sender’s publicly available key,
created on the sender’s side. They also generate a new hash of the
received document.
 If both hashes match, the document is:
o Authentic (from the claimed sender).
o Untampered (integrity preserved).

BENEFITS
 Reliability: A digital signature is inherently designed to be reliable and
authentic. Thus, it provides certainty about who signed the document and
that no one has modified the signed information afterwards.

 Documents authenticated with a valid digital signature are admissible in


court and treated as equivalent to physical signatures.

 Cost-Effective: Digital signatures are cost-effective, eliminating the need for


printing, scanning, and mailing paper. They can also reduce the need for
physical storage space for paper documents.

 Faster Document Processing Time: Digital signatures can speed up


document processing time by eliminating the need for physical signatures,
paper-based documentation, and mail delivery methods.

 Location Independence: With digital signatures, documents can be


signed from anywhere, making them useful, especially when several
parties must sign the same document.

CHALLENGES
 Forgery and Identity Theft: Cybercriminals can steal private trusted keys
and execute signatures on documents not intended to be signed. They can
also use the keys and signatures for identity theft.

 Malware: Malware can be hidden or invisible on a digitally signed document.


This can lead to installing malicious software on the signer’s device,
compromising the security of the document and the signer’s personal
information.

 Fraud: A person could alter a digitally signed document after it is signed.

 Digital Literacy: A significant portion of the population lacks digital


literacy, lack of awareness regarding digital signatures. Also limited
access to technology.

USAGES

Business: professions such as architecture, construction, engineering


companies require to sign the tenders, biddings etc., digital signature can
prove to provide assent. Signing contracts or legal documents electronically
saves time, eliminates geographical barriers, and reduces reliance on
physical paperwork.

E-Governance and Public Sector

Digital signatures are extensively used across Indian government


platforms to streamline services and ensure secure digital workflows.

Such as Return filing for GST: individual compulsory opt for digital
signature while filing GST, income tax E-filing.

Banking and Financial Services

Banks and NBFCs use digital signatures to digitize operations and comply
with RBI regulations.

Applications:

 Loan agreements and KYC documents


 e-Signing of Demand Promissory Notes (DPNs)
 Digital locker services

Aadhaar-Based eSign (Aadhaar e-KYC)


A simpler alternative to traditional DSCs, Aadhaar eSign allows individuals
to digitally sign documents by authenticating via Aadhaar OTP or
biometric.

Used in:

 Opening bank accounts


 Mutual fund investments

Education Sector

 Verification of academic certificates by universities and boards using


digitally signed marksheets and degrees (e.g., DigiLocker
integration).

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