CS Professional · Banking and Insurance - Laws and Practice · Digital Banking
Ananya Traders, a firm in Pune, holds a Digital Signature Certificate (DSC) used for signing online banking mandates. The firm is dissolved by its partners. Under the Information Technology Act, 2000, what is the position regarding the Certifying Authority's power over the DSC?
The Certifying Authority may revoke the DSC, because the Information Technology Act, 2000 expressly lists dissolution of a firm, or winding up of a company, as a ground for revocation where the subscriber is a firm or company. Revocation is a power exercised by the Certifying Authority.
- AThe Certifying Authority may revoke the DSC on dissolution of the firm, being a ground listed in the ActCorrect
- BThe DSC automatically lapses on dissolution and the Certifying Authority has no role
- CThe Certifying Authority may only suspend the DSC for up to fifteen days and cannot revoke it
- DThe Certifying Authority must wait for the Reserve Bank of India to direct revocation
Explanation
Section 38(1)(c) lets a Certifying Authority revoke a DSC upon dissolution of the firm or winding up of the company where the subscriber is a firm or company. Revocation is not automatic and does not need an RBI direction. Suspension is a separate, temporary power under section 37.
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