No more Class 2 Digital Signature from 2021?

Published On: Dec 22, 2020Last Updated: Oct 14, 20232.9 min read

If you are holding a Class 2 Digital Signature Certificate (DSC), then there’s something you need to know:

1. Class 2 DSC shall be discontinued from 1st January 2021.

2. All class 2 DSC issued on or before 31st December 2020 will stay valid on existing portals.

What should be your next step of action?

1. You should download the DSC from the system since the system refuses all pending downloads (download all issued Class 2 DSC on or before 31st Dec 2020).

2. Try to register maximum Class 2 DSC by December 31st, 2020, because the price of Class 2 is meager compared to Class 3.

CCA Issues new update

On November 26, 2020, a Controller of Certifying Authorities (CCA) revised the issue of Class 2 DSCs. The CAA agreed to discontinue Class 2 DSC effective January 1, 2021. The guideline notes that Class 3 DSC would apply instead of Class 2 DSC for all purposes, including Income Tax, PF, GST, RoC filing, Tenders, etc. You cannot buy or renew Class 2 DSCs after December 31,2020.

Present Class 2 users will have to pay more money to get a new digital signature in 2021. Although the subscribers of Class 2 DSC may feel the pain of paying bucks, it is a joy for Class 3 subscribers. The new guideline would please those contractors submitting e-Tender bids on government websites, as Class 3 rates are anticipated to fall below current levels by 2021.

Frequently Asked Questions about the Class 2 DSC update.

What is the reason behind the new CCA IVG guidelines stopping new Class 2 DSC issuance?

CCA is the Indian regulatory body and has legitimate reasons for consolidating many DSC groups into a handful. CCA has a broader overview of what is going on in India and is best positioned to simplify DSC for ordinary citizens in India.

After December 31, 2020, will the earlier issued Class 2 DSC continue to work?

Validity of Class 2 DSC released on or before December 31st, 2020, will not change. Active Class 2 DSC will continue to operate until the expiry date.

Will there be any new Class 2 DSC issued in 2021?

From 1 January 2021, no new class 2 DSC will be released in India.

How to save money on your existing DSC 2

Class 2 Digital Signature Certificate is much cheaper than Class 3 DSC. A few thousand more rupees! So now, before they stop in the coming month, you can renew your current Class 2 DSCs. In this scenario, even after 1 January 2021, your class 2 DSCs will be valid until their natural end date, which can last up to two years.

For example, if your current Class 2 DSC expires on February 10, 2021, don’t wait to renew it. According to this new CAA guideline, you cannot restore the Class 2 DSC in February. It’s safer to renew it now and continue it for next 2 years. This will allow you more time to buy a Class 3 DSC. You will save some money in the end; purchasing a Class 3 DSC will dig a deeper hole in your wallet. By renewing your current Class 2 DSC on or before 31 December, you can save on the difference.

All CAs across the country will closely follow the new DSC guidelines. The CAA has asked all CAs to comply with all guidelines on (but not limited to) Digital Signature Application and mandatory inputs, eKYC account, virtual/physical verification, key pairs stored/generated, documents verification, DSC issuance, invoice/receipt, certificate of encryption, SMS, OTP, first factor/second certificate. can provide you Class 2 DSC till 31 December 2020 at nominal price as LW is always interested in saving their client’s money.

Reach out to experts at to know more.

Call: 1800 313 4151


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Labdhi Kochar
About the Author

Labdhi Kochar

Labdhi, associated with since 2016, is a Company Secretary, Business Manager and Consultant for the company. She helps startups by giving them consultations and insights on their business development and growth. Labdhi is a BCom-LLB and has 4 years of Industry experience.