TCS set to withdraw from Digital Certificate Issue

It appears that TCS-CA which was one of the licensed Certifying authorities has decided to close down its business. On the website it is reported that they have stopped issuing further certificates from 1st December 2014.

However the CCA website still does not record this information.

Already MTNL and the Department of Customs have closed their Certifying Authority business. But it is surprising why TCS decided to back down.

If we analyze the Digital Certificate market, there is a good business potential because of the mandate in submission of IT and MCA returns. If TCS withdraws it will further reduce the competition only to Safescrypt, n-Code and E Mudhra. The result could be an increase in the cost for those who want to adopt to the system of judicial recognized digital identity.

However we observe that most of the CAs are not compliant with the provisions of ITA 2000/8 and CCA is remaining silent. Recently the Government’s digilocker project has been conceived in violation of ITA 2008 provisions and CCA seems to be unmindful. Bankers have always been reluctant to use digital signatures and prefer to flout the law while RBI looks the other way.

In the light of these developments, it is disheartening to see TCS withdrawing from the business. Unlike other CAs, TCS was operating on indigenously developed technology while others had to pay royalty to some foreign technology providers. Inspite of this, if TCS finds it unprofitable to be in the business, it could also be because the other CAs are flouting regulations to expand the market which TCS may not be willing to do.

I wish TCS clarifies the reasons for their exit from the business.



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About Vijayashankar Na

Naavi is a veteran Cyber Law specialist in India and is presently working from Bangalore as an Information Assurance Consultant. Pioneered concepts such as ITA 2008 compliance, Naavi is also the founder of Cyber Law College, a virtual Cyber Law Education institution. He now has been focusing on the projects such as Secure Digital India and Cyber Insurance
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