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CS Professional · Banking and Insurance - Laws and Practice · Digital Banking

Anita accepted a DSC listing her public key. A bank relied on the DSC while processing her loan documents. Later it emerged that Anita had given the Certifying Authority a false address proof when applying. Which statement is correct under Section 41(2)?

Anita certified to all who reasonably rely on the DSC that her representations to the Certifying Authority were true. Section 41(2)(b) makes this certification arise on acceptance, so the false address proof contradicts it, and it is owed to every reasonable relier, not just the bank.

  1. AOnly the Certifying Authority certifies the truth of Anita's representations, so she bears no certification
  2. BOn acceptance, Anita certified to all who reasonably rely on the DSC that her representations to the Certifying Authority were trueCorrect
  3. CAnita certified only the truth of the information within her knowledge, not her representations to the Certifying Authority
  4. DAnita's certification applies only to the bank that first received the DSC

Explanation

Under Section 41(2)(b), by accepting the DSC the subscriber certifies to all who reasonably rely on it that all representations made to the Certifying Authority and all material relevant to the information in the DSC are true. The false address proof breaches this. The certification is not limited to one relying party or to clause (c) alone.

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