IT in Nepal: IT Policy, Electronic Transactions Act 2063, Cyber Crime and E-Governance

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Questions about computers in Nepal, IT policies, the Electronic Transactions Act and e-governance are common in Lok Sewa General Knowledge and computer papers, and in the written papers for officers. This note collects the key facts in one place.

1. Computers in Nepal: early history

  • Nepal first used a computer, an IBM 1401, for the national census of 2028 B.S. (1971 A.D.).
  • The Electronic Data Processing Centre was set up in 2031 B.S. (1974 A.D.) and later became the National Computer Centre (NCC).
  • Mercantile Communications brought email service in 1994 and became the first internet service provider (ISP) of Nepal in 1995.
  • The .np country-code domain is managed by Mercantile Communications.

2. IT policies and plans

Policy or planYearMain point
IT Policy2057 B.S. (2000 A.D.)First information technology policy of Nepal
Electronic Transactions Act2063 B.S. (2006 A.D.)Legal base for e-transactions, digital signatures and cyber crime
Electronic Transactions Rules2064 B.S.Rules to implement the Act
e-Government Master Plan2006 A.D.First e-governance plan, prepared with help from Korea
National ICT Policy2072 B.S. (2015 A.D.)Broader policy to use ICT for development
Digital Nepal Framework2076 B.S. (2019 A.D.)Roadmap with 8 sectors and 80 initiatives for a digital economy
National Cyber Security Policy2080 B.S. (2023 A.D.)Policy to protect national cyberspace

3. Electronic Transactions Act, 2063

The Electronic Transactions Act, 2063 is Nepal’s main cyber law. It:

  • gives legal recognition to electronic records and digital signatures;
  • sets up the Controller of Certification and licensed Certifying Authorities that issue digital signature certificates;
  • defines computer crimes and their punishments;
  • provides an Information Technology Tribunal to hear cases under the Act.

Acts treated as offences include: unauthorised access to a computer (hacking), damaging or deleting data, spreading computer viruses, piracy of computer source code, computer fraud, and publishing illegal material in electronic form. Section 47 of the Act, about publishing illegal material online, is the section most often used for cases of online defamation and abuse.

4. Cyber crime and cyber security

TermMeaning
HackingGetting into a computer or account without permission
PhishingFake emails, messages or websites that trick people into giving passwords or bank details
MalwareHarmful software such as viruses, worms, Trojans, spyware and ransomware
RansomwareLocks or encrypts files and demands money to unlock them
Identity theftUsing someone’s personal details to cheat or commit crime
Cyber bullyingHarassing or insulting someone online
FirewallHardware or software that blocks unauthorised network traffic
Two-factor authenticationLogin that needs a second proof, such as an OTP, besides the password

The Cyber Bureau of Nepal Police, set up in 2075 B.S. (2018 A.D.), investigates cyber crime. The Individual Privacy Act, 2075 protects personal information.

5. E-governance in Nepal

E-governance means using ICT to deliver government services and information, making them faster, cheaper and more transparent. Its types are G2C (Government to Citizen), G2B (Government to Business), G2G (Government to Government) and G2E (Government to Employee).

  • Government Integrated Data Centre (GIDC): hosts government websites and systems, run by the National Information Technology Centre.
  • Nagarik App: a single mobile app for many citizen services.
  • National Identity Card: a smart card with biometric data, managed by the Department of National ID and Civil Registration.
  • Online services: online passport and driving licence forms, e-filing of tax with the Inland Revenue Department, online Lok Sewa application, and the electronic procurement (e-GP) system of the Public Procurement Monitoring Office.
  • Digital payments: mobile banking, wallets and QR payments, regulated by Nepal Rastra Bank.

6. Challenges

  • The digital divide between cities and villages, and between people with and without digital skills.
  • Weak internet in remote areas and frequent system downtime.
  • Cyber security threats and low public awareness.
  • Shortage of skilled IT manpower in government offices.
  • Many separate systems that do not share data with each other.

📌 Key points to remember

  • Nepal’s first computer, IBM 1401, was used for the 2028 B.S. census.
  • Mercantile became Nepal’s first ISP in 1995.
  • First IT Policy: 2057 B.S.; National ICT Policy: 2072 B.S.; Digital Nepal Framework: 2019 with 8 sectors and 80 initiatives.
  • Electronic Transactions Act 2063 is Nepal’s cyber law: e-records, digital signatures, Certifying Authorities and computer crimes.
  • Section 47 of the Act concerns publishing illegal material in electronic form.
  • Nepal Police Cyber Bureau was set up in 2075 B.S.
  • E-governance types: G2C, G2B, G2G and G2E.
  • Phishing tricks people into giving passwords; ransomware demands money to unlock files.
📝 Quiz

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