Why Class 3 DSC is the Current Standard for Digital Signing?

Digital signatures have become a routine part of how India works online. Whether you're filing returns, signing a contract, submitting a tender, or completing a financial transaction.

For years, India used three classes of DSCs: Class 1 DSC and then Class 2 DSC.

But then why was there a need for another Class of DSC—Class 3 DSC

Let's explore why Class 3 DSC became the current standard and how it is essential for today's digital ecosystem.

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Digital Signature Certificate and Its Classes: Class 1 DSC, Class 2 DSC, Class 3 DSC

Class 1 DSC

- Class 1 was the earliest type of Digital Signature Certificate introduced in India.

- Over time, it became insufficient for any official or high-security activity.

- The Controller of Certifying Authorities (CCA) decided to discontinue Class 1 completely.

Class 2 DSC

- After Class 1, Class 2 DSCs were introduced for higher-security needs.

- This class performed better identity verification than Class 1, but still wasn't strong enough for sensitive or high-value digital processes.

- As per updated CCA guidelines, Class 2 DSC was officially discontinued on 1 January 2021, and certifying authorities stopped issuing it.

Class 3 DSC

- With both Class 1 and Class 2 phased out, Class 3 DSC came, the only active and authorized class in India.

- It offers the strongest level of authentication and requires stricter verification.

- It is accepted across all major government platforms.

Today, Class 3 DSC is the current standard for all secure and legally valid digital signing in India.

Why India Shifted to Class 3 DSC?

India's digital activity has grown massively in the last decade.

Digital payments and banking adoption, great E-commerce growth, multiple GovTech initiatives, and so much more. As a result of such immense developments, IT returns, GST filings, MCA/ROC submissions, e-tendering, online banking approvals, and digital contracts happen online every day now.

But with this rapid growth came increased cyber risks, scams, and identity theft, threatening both digital identity and online processes.

Class 1 and Class 2 DSCs, which were useful in the early stages, could no longer keep up with this scale or the rising risk of fraud, identity misuse, and document tampering.

To address these challenges, the CCA discontinued Class 1 and Class 2 DSCs and adopted Class 3 DSC as the single standard. (CCA gives the Digital Signature Rules in India) It offers:

- Strong authentication and encryption

- Compliance with IT Act and government guidelines

- Universal acceptance across government and enterprise platforms

Benefits of Class 3 DSC Over Class 1 DSC & Class 2 DSC

Class 3 DSC is now the standard in India because it offers advantages that Class 1 and Class 2 could not:

1. Highest Security – Advanced encryption protects against fraud and unauthorized access.

2. Stronger Identity Verification – Requires strict KYC, video verification, or Aadhaar authentication.

3. Legally Valid Across Platforms – Accepted by all government portals, courts, and major enterprises.

4. Tamper-Proof Documents – Ensures digital files cannot be altered after signing.

5. Future-Proof – Supports new digital services and high-value transactions securely.

Where is Class 3 DSC Mandatory?

Class 3 DSC is now the only valid and accepted DSC class across almost all major government portals and digital platforms in India.

Whether it's tax filings, company compliance, e-tendering, import–export activities, financial approvals, or digital contracts, every portal that earlier used Class 1 or Class 2 now exclusively accepts Class 3 DSC for secure and legally valid signing.

If you're part of India's growing digital ecosystem, Class 3 DSC isn't just a requirement—it's an essential tool for secure digital operations. Buy Class 3 DSC for yourself!

Final Words

Shift to Class 3 DSC wasn't just an upgrade—it was a necessary step to safeguard online transactions, eliminate fraud, and create a uniform, reliable standard across all government and enterprise platforms. So between Class 3 DSC vs Class 2 and 1, Class 3 simply wins.

With Class 3 DSC being the only valid DSC class today, individuals and businesses can sign documents with confidence, knowing their digital identity is protected and their signatures carry full legal validity.

FAQ

1. What is the purpose of Class 3 DSC?

OR

What is Class 3 DSC?

Class 3 DSC is used for high-security digital signing. It verifies the identity of the signer, protects documents from tampering, and is required for most government, compliance, and high-value online transactions.

2. Is Class 2 DSC discontinued?

Yes. As per CCA guidelines, Class 2 DSC has been discontinued since January 1, 2021. All platforms that previously accepted it now only accept Class 3 DSC.

3. Which standard is used for digital signatures?

Class 3 DSC is the current and only valid standard for digital signatures in India. It follows the security and verification norms defined under the IT Act 2000 and CCA guidelines.

4. Which class DSC is required for IEC code?

For IEC-related activities on DGFT, a Class 3 DSC is mandatory.

5. Can we use Class 3 DSC for DGFT?

Yes. Class 3 DSC is required for all DGFT activities such as IEC modification, filing documents, or digital submissions.

6. How many classes are in DSC?

Earlier, there were three classes—Class 1, Class 2, and Class 3.

Today, only Class 3 DSC is valid, as Class 1 and Class 2 have been discontinued by the CCA.

7. What is Class 3 DSC Price?

Class 3 DSC price generally depends on the Certifying Authority, the validity period, the sign or encryption.

8. What are the Digital Signature Rules in India?

Digital Signature Rules in India are defined under the Information Technology Act, 2000 and regulated by the Controller of Certifying Authorities (CCA). These rules govern, usage, security, and legal validity of DSCs—currently, Class 3 DSC is the only valid type allowed.

It states that only authorized Certifying Authorities, like Capricorn CA, can issue Digital Signature Certificates.

9. How to get DSC Class 3?

To get DSC Class 3, you need to apply through a licensed Certifying Authority like Capricorn CA.

Want to know the process of how to buy Class 3 DSC in detail? CLICK HERE

10. DSC Class 2 means what?

DSC Class 2 means the older class of DSC, once used for filings like GST, MCA, and Income Tax.
However, DSC Class 2 is discontinued and no longer valid as per CCA guidelines. All such activities now require Class 3 DSC.

11. What is a Class 3 DSC Token?

A Class 3 DSC Token is a secure USB cryptographic device used to store your Class 3 digital signature certificate. It ensures safe usage, prevents unauthorized access