After issuing about 3.5 lakh digital signature certificates in India, Bangalore-based eMudhra has secured approval from Mauritius government to certify digital signatures for online banking transactions.

eMudhra is the first Indian certifying organisation to issue digital signature certificates to a foreign country. Speaking to Financial Chronicle, eMudhra, MD and CEO, Ravi Jagannathan said, “The Mauritius government has already given us an in-principle approval. We will be issuing digital signature certificates in Mauritius in 3 to 4 weeks time”. Jagannathan, added, “We are planning to expand to African countries.” Many Africa nations have developed extensive e-governance projects to serve their population.

Presently, there are seven players including 3 government agencies who certify digital signatures in India. These are NIC, IDRBT, MTNL, TCS, Encore, Sify, and eMudhra. Speaking about RBI’s guidelines on online banking transactions, Jagganathan, said, “The RBI in its April 2011 guidelines has given a deadline asking all the banks to comply with Information Technology act. The IT act recognises digital signatures as the only recognised form of authentication for online and electronic banking transactions”.

Jagannathan, said, if all banks starts complying guidelines from September 2012, the market size in India will triple in another two years. The market size of digital signature in India can go up to 6 million by next 2 years. He said, “Only ICICI and Corporation bank have enabled their corporate customers to do online banking using digital signatures”.

There are three classes of digital signature certificates. The class 3 certificate is used for financial transactions and cost in between Rs 1,200 & Rs 2,000. The class two category is being used for e-governance projects and cost about Rs 400. The class one category is used for plain communications like emails. He said there was no demand for class one category.

Currently all 7 certifying firms have issued about 2 million digital signatures in India. Out of that, eMudhra has a share of 3.5 lakhs. About 90 per cent of its certificates are in use for e-governance projects including MCA-21 & online Income Tax returns. MCA-21 pertains to projects run by ministry of corporate affairs, for digital filings. The remaining ten per cent is used for government procurements and intra-bank transfers.