Digital Signature vs Aadhaar e-Sign: Which Is Better for RCMC Filing?
Under the Foreign Trade Policy, exporters are required to file for RCMC to access government benefits, schemes, and incentives. However, before obtaining the RCMC certification, exporters are required to authenticate their application on the DGFT portal. There are two options for fulfilling it, which are a digital signature and an Aadhaar e-Sign. But which is the best method for RCMC? Filing online in India? Let's break it down in more detail.
What is the Role of DSC (Digital Signature Certificate)?
DSC is a trusted key that is widely utilized by established businesses for digital applications. When signing documents online for authentication, privacy is a concern. The role of a digital signature is to demonstrate the electronic identity of the applicant. With it, the organizations and businesses get access to sign documents and forms digitally.
DSC Requirement for Businesses:
DSC is legally verified for transactions under the Information Technology Act 2000.
DSC's advanced encryption technology makes the transaction process safe and secure.
Using the signature certificate is compulsory to fulfill business compliance, such as tax returns, GST returns, and e-tendering.
A digital signature with the DSC is crucial to avoid tampering after being signed.
DSC is legally verified for transactions under the Information Technology Act 2000.
DSC's advanced encryption technology makes the transaction process safe and secure.
Using the signature certificate is compulsory to fulfill business compliance, such as tax returns, GST returns, and e-tendering.
A digital signature with the DSC is crucial to avoid tampering after being signed.
What are the Cons of a Digital Signature Certificate (DSC)?
It is common to say that DSC provides a higher level of security and support during online application filings. However, there are specific drawbacks associated with it, which are:
It increases the dependency on technology.
Technology dependency potentially causes cyber threats such as hacking and cybercrime.
For individuals who are not familiar with the DSC online registration, the process can seem daunting initially.
Renewal of DSC is mandatory, as it is valid only for a specific time period.
Management of ongoing administrative tasks can seem complex.
To obtain the DSC, it has an additional cost, which can be increased while taking expert assistance to navigate the process.
It increases the dependency on technology.
Technology dependency potentially causes cyber threats such as hacking and cybercrime.
For individuals who are not familiar with the DSC online registration, the process can seem daunting initially.
Renewal of DSC is mandatory, as it is valid only for a specific time period.
Management of ongoing administrative tasks can seem complex.
To obtain the DSC, it has an additional cost, which can be increased while taking expert assistance to navigate the process.
The Use of Aadhaar e-Sign to Sign Documents
The Aadhaar e-Sign helps to sign the documents electronically. Aadhaar e-Sign acts as a secure and legally recognized electronic signature service. As compared to DSC, it requires the Aadhaar identity of the applicant to sign documents. Under the Information Technology Act, 2000, this electronic service replaces the hurdles of traditional paperwork. Individuals and businesses are not required to round off government and other specific offices. In place, they can sign paperwork with OPT authentication. The Aadhaar database is helpful for businesses to authenticate to ensure complete and accurate integrity.
The common aspects of Aadhaar e-Sign are
Document Upload
The electronic signature service supports signing the documents by uploading them to the portal.
AuthenticationFor verification, the Aadhaar card is used, which is linked to the applicant's business number for an OTP (One Time Password).
Biometric Authentication In place of OTP, the applicants can utilize the fingerprint or IRIS scan for authentication.
Online Signature Generation The portal creates a digital signature, which is affixed to the document.
Document validationThe digitally signed documents look similar to handwritten signatures, which possess the same legal standing.
What are the cons of Aadhaar e-Sign?
Aadhaar e-Sign is easier to access and provides a smooth digital signature process. But it is not properly safe. The following are risks associated with Aadhaar e-Sign:
The process of Aadhaar e-Sign depends on the individual's Aadhaar number.
A minor outrage or technical issue with the Aadhaar database leads to the Aadhaar e-Sign service being unavailable.
This system authentication method is limited as some organizations or individuals cannot access fingerprints or IRIS.
Aadhaar e-Sign is not valid or legally accepted everywhere, such as in the case of a sub-registrar. In this situation, the applicant is required to present physically to sign documents.
A low network connection or an inactive wrong number can cause a delay in OTP approval. It means the process depends on the OTP.
The process of Aadhaar e-Sign depends on the individual's Aadhaar number.
A minor outrage or technical issue with the Aadhaar database leads to the Aadhaar e-Sign service being unavailable.
This system authentication method is limited as some organizations or individuals cannot access fingerprints or IRIS.
Aadhaar e-Sign is not valid or legally accepted everywhere, such as in the case of a sub-registrar. In this situation, the applicant is required to present physically to sign documents.
A low network connection or an inactive wrong number can cause a delay in OTP approval. It means the process depends on the OTP.
Digital Signature vs Aadhaar e-Sign RCMC
For the DGFT RCMC filing, the process involves the digital signature of the applicant. During this process, the businesses can navigate RCMC filing with Adhaar e-sign and DSC. Well, if you are searching for which method is best for RCMC certification, it basically depends on exporters' convenience vs. versatility.
Aadhaar e-sign: The small exporters or startups who are not much involved in international exportation in higher strength can utilize the Aadhaar e-sign for RCMC filing.
DSC (Digital Signature Certificate): It is one of the best methods for digital document signatures. The role DSC plays is vital for established exporters and corporates. For each organization, a digital signature looks more versatile and secure, as well as accepted across various compliance portals.
Note: Both Digital Signature and Aadhaar e-Sign are valid for registration for RCMC. However, it depends on the size of the organization, compliance requirements, and budget.
Aadhaar e-sign: The small exporters or startups who are not much involved in international exportation in higher strength can utilize the Aadhaar e-sign for RCMC filing.
DSC (Digital Signature Certificate): It is one of the best methods for digital document signatures. The role DSC plays is vital for established exporters and corporates. For each organization, a digital signature looks more versatile and secure, as well as accepted across various compliance portals.
Note: Both Digital Signature and Aadhaar e-Sign are valid for registration for RCMC. However, it depends on the size of the organization, compliance requirements, and budget.
Final Thought | Export compliance: DSC vs Aadhaar e-Sign RCMC
To access the government benefits, schemes, and tax exemptions, fulfilling the DGFT requirements for the RCMC certificate is essential. Meanwhile, the process of registration is incomplete without the digitally signed documents. Exporters can use either DSC or Aadhaar e-sign. DSC is appropriate for higher security and compliance requirements, while Aadhaar e-sign is ideal for casuals and individuals. Choose a wise method for RCMC filing to grow your business.
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