Nepal has promulgated Electronic Transaction Act-2063 and Regulations, legalizing all electronic transactions and digital signatures moving a step further in the information and communication technology (ICT).

Nepal promulgated the act regarding ICT absorbing the growing computer based activities. The new legislation has legalized all forms of electronic transactions and digital signatures clearly spelling out ways to regulate various computer-based activities and punish cyber crimes.

The House of Representatives (HoR) approved the Electronic Transaction Act-2063 on December 4 and the Ministry of Environment, Science and Technology (MoEST) formulated the Regulations.

The computer and cyber crimes such as hacking, piracy, copyright violation, fraudulent and all other deceitful activities have been clearly defined and punishments are set accordingly in the act.

According to the act, the action against such crimes and punishment will be in the range of a minimum Rs 50,000 to a maximum Rs. 3, 00,000 in cash and six months to three years imprisonment.

Besides legal validity of electronic records and digital signature, the new Act has made a provision of Regulator and certification authority. The Act is divided into 12 sections and 80 clauses with detailed information on role and rights of regulator, certification authority, customer, government and all the concerned stakeholders.

The act has also envisaged a separate judicial body -IT Tribunal and Appellate Tribunal, to look into all cases related to computer and cyber crimes.

Similarly, the electronic transaction and digital signature is valid not only for the private sector but also for the government agencies.

Making a presentation on Cyber Law at a program organized by Nepal Chamber of Commerce (NCC) and IT Professional Forum (ITPF) on Sunday, Purushottam Ghimire, under secretary at the MoEST stated that the new legislation has clearly set forth legal framework, administrative and application mechanism for electronic transaction and digital signature.

Lochan Lal Amatya, president of ITPF said that the new law would facilitate business process and transactions would be made simpler, easier, swift and cost effective.