• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

V. Rishi Kumar

HYDERABAD, Dec. 2

IMAGINE a situation where all the 34-35 million income-tax assessees are allowed to file their returns on the Internet using personal digital signatures and they get to either pay additional tax or secure IT refunds swiftly all on the Net.

This will mean we can bypass say at least a billion papers. This is certainly possible, and will be able to bring huge savings in operating expenses to the Income-Tax Department and make the life of a taxpayer more comfortable. The day is not far off, when this will be a reality.

The growth and use of digital certification will gradually increase once both Central and State governments begin to increasingly adopt more e-governance projects and bring in citizen-friendly initiatives. This will then not only bring in huge cost savings to the administration, but also help proliferate the use of e-commerce.

The Controller of Certifying Authority, Government of India, Mr K.N. Gupta, told Business Line how the growth of e-commerce in India is inextricably linked to the growth of e-governance in the country. As the awareness is increasing, we will witness more secure transactions on the Internet in the virtual space.

"We are now in the process of building public opinion in terms of adoption of digital certification across the country. Just imagine if you have a certified digital signature and all your applications have the stamp of such signature, this will make your transactions extremely safe and secure. For instance, even a simple e-mail can bear a digital stamp to make it more secure," Mr Gupta said.

Let us assume that the Department of Posts or the National Securities Depository Ltd, (NSDL), the banking industry begin to use digital signatures and encourage transactions over the Internet, all these organisations will be able to bring in savings in operational expenses while addressing the issue of accessibility, he said.

Digital signatures have universal applications and with the recent amendment to the Negotiable Instruments Act, it would be possible to address issues of various clearing houses by cutting down on number of transactions. The Institute of Development Banking in Research and Technology is a certifying authority for the banking and financial sector and is actively engaged in promoting the adoption of digital certificates, he said.

Though several banks currently extend Net banking facility, these services are limited to the checking of balance or account enquiry and in some cases transfer of funds.

But with the infrastructure for the digital economy being laced together gradually after the passage of the IT Act, 2000, the stage is set for swifter growth. It will be about a year or so, by the time, the use of digital signatures will catch up in a big way, he said.

If corporates adopt and use digital signatures, this will bring in increased transparency and also cut down on the process. The best thing, therefore, is for corporates with large client base, in the banking sector or for that matter, insurance, should endeavour to adopt and encourage digital signatures.

As of now, it is not a volume driven initiative, but the approach is aimed at popularising the use and benefits of the system, Mr Gupta said.

Currently, Tata Consultancy Services, IDRBT and SafeScript, part of Satyam Infoway, are the three registered certifying authorities. Though the National Informatics Centre (NIC) was the fourth applicant, it is currently not working on this space.

Send this article to Friends by E-Mail
Comment on this article to BLFeedback@thehindu.co.in

Stories in this Section
Cellular users need to be aware of virus attacks — Multi-tiered protection system sought

Copyright © 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line